On layoffs, very bad attendance, and Iger's legacy being one of disgrace

[peter11435]

I'm waiting for them to look really stupid once the retheme gets axed for financial reasons and then they end up with three rooms of Br'er Bear plushes

I wouldn’t expect that to happen. They will cut whatever else they need to in order to make sure this project moves forward.

 

[EagleScout610]

I wouldn’t expect that to happen. They will cut whatever else they need to in order to make sure this project moves forward.

As my dad likes to say, "We could all be crushed by a meteor next Tuesday, so let's see what happens"

 

[ParentsOf4]

I'm watching a place I dreamt about as a child, that I have countless found memories of, being torn apart by events that have nothing to do with the way the company is run.

 

[celluloid]

I wouldn’t expect that to happen. They will cut whatever else they need to in order to make sure this project moves forward.

Haha.

 

[TeriofTerror]

I wouldn’t expect that to happen. They will cut whatever else they need to in order to make sure this project moves forward.

I'm fine with that, but I'd also really like to see this bite the Ebayers in the butt.
May I please have my cake and eat it, too?

 

[lewisc]

I'm waiting for them to look really stupid once the retheme gets axed for financial reasons and then they end up with three rooms of Br'er Bear plushes

Or Disney orders enough Splash stuff to meet demand until the attraction closes for retheming.

 

[Sirwalterraleigh]

Like any retail business, their cost of goods/services are only 20-30%, with the rest being gross margin. I can see how they are turning a “gross” profit.

“Net” is TBD.

That’s actually not the case at wdw. Though instinct would lead you to believe it is.

Disney has a tremendous “sunk cost” due all the overhead costs they eat as they run the infrastructure. Nobody “pays” for a fleet of hundreds of buses, a private security force, horticulture, road maintenance, water system management, etc. reedy creek is a puppet municipality...at the end of the day.

The profit is still overwhelmingly from merchandise. Nearly all of it. Product from china...you do the math.

I used to actually see the figures - long ago...but my data is so out of date I can’t address the differences in prices, labor costs, benefits, upsells, etc now...

...but it’s not that different.

The old adage was that they never have made a dime off a hotel room charge or a ticket.

It was surprisingly accurate.

Overhead is much higher...which is why I equate wdw making profits as “climbing a mountain”...once they cross the top...it’s all profit on the downslope. Have to have numbers for that.

 

[Nubs70]

I'm watching a place I dreamt about as a child, that I have countless found memories of, being torn apart by events that have nothing to do with the way the company is run.

But it is good to see you.

 

[Sirwalterraleigh]

I'm watching a place I dreamt about as a child, that I have countless found memories of, being torn apart by events that have nothing to do with the way the company is run.

You are officially the king/queen

 

[DVCakaCarlF]

How about we just wait and see what happens? My instinct is to say this is all doom and gloom, but maybe I’m wrong. Rome crumbled; maybe Disney will, too.

I’m inclined to think the majority of American Disney guests are either locals who can visit relatively cheaply, or tourists who have good incomes and probably are working from home and not financially impacted by COVID-19. I think American tourism will pick up at some point. International will be tougher.

It wouldnt be be bad if they focused on Americans for a minute.

 

[DVCakaCarlF]

That’s actually not the case at wdw. Though instinct would lead you to believe it is.

Disney has a tremendous “sunk cost” due all the overhead costs they eat as they run the infrastructure. Nobody “pays” for a fleet of hundreds of buses, a private security force, horticulture, road maintenance, water system management, etc. reedy creek is a puppet municipality...at the end of the day.

The profit is still overwhelmingly from merchandise. Nearly all of it. Product from china...you do the math.

I used to actually see the figures - long ago...but my data is so out of date I can’t address the differences in prices, labor costs, benefits, upsells, etc now...

...but it’s not that different.

The old adage was that they never have made a dime off a hotel room charge or a ticket.

It was surprisingly accurate.

Overhead is much higher...which is why I equate wdw making profits as “climbing a mountain”...once they cross the top...it’s all profit on the downslope. Have to have numbers for that.

That’s what I said “gross,” and not “net.”

The overhead, I’m sure, is astronomical, but is a fixed cost and, at this point, it’s been capitalized. That monorail beam costs nothing compared to the fuel those buses use. Did you know they actually “lease” those tires?

And, with the amount of money that place makes, I bet they “made the summit of that mountain” in the first quarter of the fiscal year.

 

[Piebald]

Wait...how did they "push splash merch" on the ebay resellers?? That's not how it works. When they opened the ebay sellers just went in and bought everything up because Disney made the splash refurb announcement so ebay resellers knew splash merch would be hot. How is that Disney pushing it on them? Sure Disney made sure to have plenty of Splash Merch stocked up due to the announcement but it's not like Disney themselves announced a Splash Mountain sale merch or something. So can you please explain your statement?

Well they kind of created the demand by getting rid of all of the merch from their website, eliminating most of the merch that could be found in multiple locations (i.e. there was a little Brer Rabbit thing that clipped onto bags and stuff, gone from the other parks) and basically leaving only one location to sell it all. Once they got rid of it online people went nuts.

 

[waltography]

I think some of y'all need to get over your mask hangups. Haven't you heard? Masks are the new mouse ears! #ExpressYourself #EmbraceTheMask
View attachment 487996

That is an enviable collection! Are they all from WoD or did you get some from other places like RedBubble?

 

[1HAPPYGHOSTHOST]

Well they kind of created the demand by getting rid of all of the merch from their website, eliminating most of the merch that could be found in multiple locations (i.e. there was a little Brer Rabbit thing that clipped onto bags and stuff, gone from the other parks) and basically leaving only one location to sell it all. Once they got rid of it online people went nuts.

That is not pushing the merch on anyone. No one is forcing them to buy it. controlling where it is available is not the same thing.

 

[Sirwalterraleigh]

That’s what I said “gross,” and not “net.”

The overhead, I’m sure, is astronomical, but is a fixed cost and, at this point, it’s been capitalized. That monorail beam costs nothing compared to the fuel those buses use. Did you know they actually “lease” those tires?

And, with the amount of money that place makes, I bet they “made the summit of that mountain” in the first quarter of the fiscal year.

The overhead is huge and largely fixed. Which makes it hard to compare that compound to anywhere on earth...because it’s the only one of its kind.

It also makes their prospects in a severe, longterm travel disruption very precarious.

Good thing they have tons of cash.

People make the 9/11 comparison...please...things were back to normal within 2 weeks with only a regional disruption. It was the recession conditions before and after the incident that wrecked Disney parks at the time.

They circumvented the pain by and large in the housing crash...actual genius moves by Iger - even if longterm consequences.

Not much left in the tank to get around hardship this time.

 

[DVCakaCarlF]

The overhead is huge and largely fixed. Which makes it hard to compare that compound to anywhere on earth...because it’s the only one of its kind.

It also makes their prospects in a severe, longterm travel disruption very precarious.

Good thing they have tons of cash.

People make the 9/11 comparison...please...things were back to normal within 2 weeks with only a regional disruption. It was the recession conditions before and after the incident that wrecked Disney parks at the time.

They circumvented the pain by and large in the housing crash...actual genius moves by Iger - even if longterm consequences.

Not much left in the tank to get around hardship this time.

I agree that’s it hard to compare to another “conventional” business.

What is the current cash position?

 

[mkt]

Exactly. We live just over an hour away. AP holders. At least once a month visitors. As long as a mask is required , we aren't going. We have Beach Club ressies at the end of September. If the mask is still required, we will cancel.

You do you. You might want to let the AP’s lapse then, or cancel them for a prorated refund, as I don’t see Disney eliminating mask requirements from time.

 

[mkt]

That being said, Ford trucks are the best selling over 40 years for a reason.

Huge volume discounts for fleets, and great prepaid maintenance program.

 

[TeriofTerror]

That is an enviable collection! Are they all from WoD or did you get some from other places like RedBubble?

Thanks! Mostly Redbubble, and I made some on Contrado.

 

[EricsBiscuit]

You can’t kill a Honda engine...i think it could run without oil.

My first car was a Civic. Probably one of the best decisions I’ve ever made!