These brothers actually predicted the hatchimals craze, and net huge profit

These brothers actually predicted the hatchimals craze, and net huge profit

Two weeks ago, we told you all about the Hatchimals craze and how the little stuffed animals are the season’s hottest toy. If you’re one of the parents caught up in the frenzy of trying to find the perfect Hatchimal for Christmas, you’re going to hate Stan and Mike Zappa.

Two weeks ago, we told you all about the Hatchimals craze and how the little stuffed animals are the season’s hottest toy. If you’re one of the parents caught up in the frenzy of trying to find the perfect Hatchimal for Christmas, you’re going to hate Stan and Mike Zappa.

When Mike’s 10-year-old daughter asked for a Hatchimal for Christmas, the brothers from Glendale, Arizona had a feeling the toys were going to be huge. Acting on this hunch in early October, the brothers drove to six Barnes & Noble stores. They stock-piled 100 Hatchimals in the hopes of making a profit reselling them for the holidays.

Their hunch paid off. Since all major retailers were sold out by mid-November, desperate parents are forced to seek out other means to buy the toys. Usually retailing for $50 to $60, the craze spiked the prices of the interactive toy forcing frantic parents to shell out $125, $150 and even $200 or more.

By Black Friday, the Zappa brothers already broke even on their $5,000 investment, according to an Arizona TV station. And they still have dozens of Hatchimals left to sell.

Whether you think they’re cashing in at the expense of anxious parents who are desperate to avoid disappointing their kids on Christmas, or wish you thought of the idea first, the Zappa brothers aren’t too concerned.

“We were expecting this,” Mike Zappa said of the social media backlash they’ve received over their scheme. “But we also took a risk. We didn’t break any laws. And we aren’t dictating how the market is pricing the toys on eBay. What we are doing is capitalism at its best.”

It seems like the brothers are happy with their plan so far. At least by their smiles in this twitter post!

There wouldn’t be such a craze over the toy if manufacturer Spin Master could keep up with demand of production in time for the holidays. The company’s website states:

“While additional product will hit retail shelves in December, we anticipate this inventory will also sell out quickly. We have increased production and a whole new batch of Hatchimals will be ready to hatch in early 2017.”

The Hatchimals creator also states it doesn’t “support inflated prices from non-authorized resellers.”

Resellers like the Zappa brothers.

They list the toys on eBay at regular selling price of $60. And the market does the rest. “People are bidding as high as $190 to $200 for these,” Mike said. “The market value will only go up closer to Christmas.”

But it was a huge risk the brothers took, and they know it could have turned out badly.

“Three weeks ago there wasn’t one person we knew who thought this was a great idea,” said Stan just before Thanksgiving. “Even our father called us idiots. Now they can’t believe it.”

Mike admits that $5,000 was a lot to spend on the toys. “We were hoping and praying that this was going to be the next big toy,” he said.

Clearly, Hatchimals are the next big toy as Mike predicted. As a result, their risk is paying off. If each of their remaining toys sell for about $200, the brothers could be raking in $9,000 in profits.

Before you judge them too harshly, know that Mike, a single father of two, says the money is going to help his kids have a good Christmas. And they are hoping to spread the joy to lucky families as well.

They’ve created a Facebook group for parents to submit messages and photos explaining why one of the Hatchimals will make their child’s Christmas wish come true. The brothers will choose three winners and send them a Christmas present their kids – and certainly the relieved parents – won’t forget.

Will the brothers try to cash in on another craze next year?

“Chances are slim to none,” said mike. “You don’t see something like this happen often.”

Also read:  How to wrap a Christmas present in under 30 seconds!


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