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LeapFrog Enterprises Inc. Message Board

  • tommurtaugh tommurtaugh Nov 19, 2013 1:27 PM Flag

    Walmart discounting

    Walmart is discounting the leap pad2 on black Friday to 39.00 is this product going to discontinued? seems extreme

    Sentiment: Hold

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    • Received an email from Amazon this morning that today Amazon is offering a $30 amazon gift card with the purchase of a Leappad Ultra.

      The Ultra shot up to #69 in Toys & Games so far today.

      Perhaps the LF strategy is sell the Leappads closer to cost and make the money on the content.

    • I have not seen any mention from LF about discontinuing the LP2 (although I think they should). As far as I'm aware they still offer the LP2, LP2 Power, and LP Ultra.

      I just checked and that $39 price is not on Black Friday. It's a PRE Black Friday event which actually starts tomorrow (11/22) at 8am. I'm not sure what to make of that. We have no idea of knowing if LF contributes to that discounted price or not but they clearly did discuss discounting on the last conf call.

    • It already has. I haven't seen the walmart ad, but there are two versions. Last years leap pad 2, and the new leap pad 2 power which comes with rechargable batteries and a charger. Im assuming they have some of the old versions still which can be sold below the MAP price of the new without penalty.

      Regardless.. It is a bit worrisome as they are selling at a pretty big loss. Retailers margins are really slim on these. I hope I'm right on the old version.. For the same retail (new and old) who wouldn't want the rechargable batteries. Old ones would be hard to move unless steeply discounted.

      Sentiment: Hold

    • In addition with every unit sold, customers can better afford to purchase games full price directly from LF.

      Sentiment: Hold

    • Walmart is discounting the leap pad2 on black Friday to 39.00 is this product going to discontinued? seems extreme

      I wouldn't read to much into that discount, Walmart is using the leading kids tablet as a leader, selling it at cost or even a loss to get (lead),people into the store and buy the aveage 13 other products that they will make a profit on. When I worked for Kodak and their film was king, many retailors use Kodak film to sell at no profit or a loss just to get people in the store buying other things at a profit. It's good for LF, good for Walmart, and good for the customer and if you're long on the stock, good for you !

    • Let them discount. They are already bought. from LF.

    • Limited stock I bet...I doubt they will make every unit available at that price...maybe 100 of them or some silly small amount...Even if they do they are eating that difference not LF as far as I know and that will turn around and yield more 2ndary sales of things like games and software..

      • 1 Reply to treefortrichard
      • Regarding Walmart discounting ... all good comments here ... however it still doesn't explain the glaring weakness in LF shares. For them to now be under $8 suggests institutions are expecting a very lackluster holiday sales season for the company, their most crucial quarter.

        As for me I think the selling is overdone - but I'd put out a fine welcome mat for HAS or MAT anytime.


        Sentiment: Hold

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