Toys & Games: The Unsustainable Squeeze

by TAMI MURPHY, Founder, Tamic Strategies

Here’s a sobering statistic that should give every person in the toy and game industry pause: While board game prices have increased just 10-15% since 2006, movie tickets have more than doubled. Meanwhile, manufacturing, shipping, insurance premiums, and virtually every other business expense you can think of have climbed relentlessly upward.

This pricing disconnect isn’t just an interesting industry observation — it threatens the long-term viability of businesses across our sector.

In my 19 years in this industry, I’ve seen pricing pressure from all angles — as a sales manager watching margins shrink, as a marketing manager justifying budgets against compressed profits, and as an ASTRA board member hearing from retailers squeezed by the same problem.

The cautious approach many of us have taken made sense in the short term. But when costs rise 3-5% annually and retail prices remain flat, the squeeze becomes life-threatening.

For years, we survived by leaning on volume growth. But recent history — lead paint recalls in 2008, the housing crisis, shipping chaos during the COVID-19 pandemic, and now Trump-era tariffs — proves that external disruptions hit harder when our margins are already razor thin.

We’re drastically undervaluing the impact we deliver. Couples casually drop $42 on a movie night. Families spend $65 on a minor league baseball game. And yet, we deliver months — even years — of connection, growth, and joy for a fraction of that cost.

As an ASTRA Certified Play Expert, I’ve seen the power of what we create. Play builds motor skills, strategic thinking, and social-emotional development in kids. For adults, it promotes neuroplasticity and combats isolation. For families, it creates irreplaceable bonding moments.

The transformative power of play is undeniable, but only if we can sustain the businesses that create it.

The solution isn’t a dramatic price spike. It’s thoughtful, incremental adjustments that reflect the true value of what we offer. Strategic increases — even just $0.25 to $0.50 over time — can restore healthier margins while still delivering unbeatable value.

We need to reframe the conversation: Our products aren’t “just toys and games.” They’re tools for connection, development, and joy that outperform nearly every other form of family entertainment.

Strategic pricing is just the beginning. Resilient companies also maintain cash reserves, diversify manufacturing partnerships, and build strong relationships across their networks. Most importantly, they plan ahead because history tells us that disruption is inevitable.

Something shakes the foundation of this industry every three to five years. Whether it’s regulatory changes, economic shifts, or geopolitical instability, the next crisis is always coming. If there’s a lesson to be learned, it’s that we can’t afford to be caught off guard again.

We have two paths: Absorb rising costs until we hit a breaking point, or take action now to build businesses that are strong enough to weather what’s ahead.

That’s why I’m launching strategic pricing and resilience workshops this August — to help our industry shift from survival mode to sustainable leadership.

Because the next disruption is coming. The companies that thrive will be the ones that prepare before it hits.

A version of this feature was originally published in the 2025 Action & Adventure Issue of The Toy Book. Click here to read the full issue! Want to receive The Toy Book in print? Click here for subscription options!