Lego jacking up prices this year

[gmpirate]

1 minute ago, Pseudoty said:

Couldn’t decide to post this here or in the complaint thread:

So Lego heard the uproar regarding the price of the new Ideas Lighthouse set and lowered it in the UK to £259 but maintained the $299 price in the USA. 

🤔  I don't know about that.  There's "uproar" about a lot, if not most, lego sets.  If there was a price change I don't it had to do with an "uproar".

[Pseudoty]

1 minute ago, gmpirate said:

I'm not an expert but for a time I helped my brother out who owns a number of websites -- some similar to this one.  Imo, it's just silly article to begin with.  Substitute any theme for Ideas and it's all the same.  "Lego Ideas set have become larger and more expensive".  There's the whole article -- nothing else said adds to it.  Now how can that be expanded to 1500 - 2000 words, insert graphs, pics, links to other articles, repeat key words, make searchable headlines throughout . . . -- affiliate links.  From my understanding it's not really an effective webpage to do any more because Google changes up its analytics so much.  Again, I'm not an expert but when I started reading it it just hit me with being a shallow article that just strove to hit all the right metics for search results -- although dated in its approach.

The article did have one good point to me and that was his “analysis” confirmed my previous posted thoughts that Home Alone is the best value set to purchase.  

[Pseudoty]

3 minutes ago, gmpirate said:

🤔  I don't know about that.  There's "uproar" about a lot, if not most, lego sets.  If there was a price change I don't it had to do with an "uproar".

Well any theories on why the price drop after it was on their website? I think that is historically rare. 

[redcell]

19 minutes ago, gmpirate said:

I'm not an expert but for a time I helped my brother out who owns a number of websites -- some similar to this one.  Imo, it's just silly article to begin with.  Substitute any theme for Ideas and it's all the same.  "Lego Ideas set have become larger and more expensive".  There's the whole article -- nothing else said adds to it.  Now how can that be expanded to 1500 - 2000 words, insert graphs, pics, links to other articles, repeat key words, make searchable headlines throughout . . . -- affiliate links.  From my understanding it's not really an effective webpage to do any more because Google changes up its analytics so much.  Again, I'm not an expert but when I started reading it it just hit me with being a shallow article that just strove to hit all the right metics for search results -- although dated in its approach.

Calling the article silly is generous.  IMHO, it's completely worthless.

[CsabaLazlo]

2 hours ago, Pseudoty said:

Well any theories on why the price drop after it was on their website? I think that is historically rare. 

It happened with the UCS AT-AT as well. Never heard of it before then.

[gmpirate]

2 hours ago, Pseudoty said:

Well any theories on why the price drop after it was on their website? I think that is historically rare. 

I can throw one out there.  Historically Lego hasn't increased prices on current sets, rather they just retire and reissue.  Now that they have opened that door they can come out with a price that may be too low and always raise it later.  The initial lighthouse price could have been a mistake or the simply thought it would be a better price point "for the time being".  No harm, no foul now if they change their minds later.

People have been "roaring" for years . . .

[Pseudoty]

26 minutes ago, gmpirate said:

I can throw one out there.  Historically Lego hasn't increased prices on current sets, rather they just retire and reissue.  Now that they have opened that door they can come out with a price that may be too low and always raise it later.  The initial lighthouse price could have been a mistake or the simply thought it would be a better price point "for the time being".  No harm, no foul now if they change their minds later.

People have been "roaring" for years . . .

Good point! I was thinking about this as well but for another reason. Usually, unless we want a set immediately to build or flip we wait towards the end of the sets life cycle to load up and hopefully get some good discounts during that time. However, now this throws another variable into the mix, if a set gets a 20% price increase after year 1 it is going to make it harder for me to purchase during year 2 both mentally, kinda like reverse FOMO I can’t see buying the MBS Cantina at $400 even with double VIP and a promo, and financially. Would have to look at some analysis of price increases Vs opportunity cost, anyone have a link  

[brickolodon]

looks like retiring sets (over $100 or $99.99) did not get price hike

[BrickzDJ]

On 8/28/2022 at 7:25 PM, Pseudoty said:

Good point! I was thinking about this as well but for another reason. Usually, unless we want a set immediately to build or flip we wait towards the end of the sets life cycle to load up and hopefully get some good discounts during that time. However, now this throws another variable into the mix, if a set gets a 20% price increase after year 1 it is going to make it harder for me to purchase during year 2 both mentally, kinda like reverse FOMO I can’t see buying the MBS Cantina at $400 even with double VIP and a promo, and financially. Would have to look at some analysis of price increases Vs opportunity cost, anyone have a link  

I also believe that it is mentally more difficult to buy a set that has had a price increase.
the question is whether the "normal" LEGO fan is aware of the fact that the price has been increased quite significantly in some places.

[cladner]

1 hour ago, BrickzDJ said:

I also believe that it is mentally more difficult to buy a set that has had a price increase.
the question is whether the "normal" LEGO fan is aware of the fact that the price has been increased quite significantly in some places.

you mean a price increase before retirement of course. The whole entire Lego investing business enterprise is based upon future customers accepting  our sometimes ridiculous price increases once a set is eol.

[Sozial]

3 hours ago, cladner said:

you mean a price increase before retirement of course. The whole entire Lego investing business enterprise is based upon future customers accepting  our sometimes ridiculous price increases once a set is eol.

Ridiculous is a hard word

[Pseudoty]

Data prior to price increases:

[Captain_Obvious]

This is a total lie from hell.. 

 

[BrickLover80]

19 minutes ago, Captain_Obvious said:

This is a total lie from hell.. 

 

Giving us fun themes (Hidden Side) and great technology (Bluetooth remote). 😅

On a more serious note, why does Lego want to go digital? They are one of the best analog toys. Parents don't want their kids on phonrs and adults are looking to get off them. Don't build stuff that requires phones.

[Phil B]

6 minutes ago, BrickLover80 said:

Giving us fun themes (Hidden Side) and great technology (Bluetooth remote). 😅

On a more serious note, why does Lego want to go digital? They are one of the best analog toys. Parents don't want their kids on phonrs and adults are looking to get off them. Don't build stuff that requires phones.

Same reason why at the end of the 90s they decided they needed to go the action figure route (Galidor): Failing to understand the core strength of your product and too much reliance on what is trending in the industry.

Edited September 28, 2022 by Phil B

[BricksBrotha]

32 minutes ago, Captain_Obvious said:

This is a total lie from hell.. 

 

'In April, the LEGO Group announced a long-term partnership with Epic Games which will see the two companies join forces to create fun, safe digital experiences for kids in the metaverse and inspired by the endless possibility of the LEGO brick.

In June, the LEGO Group officially opened a digital office in Copenhagen while growing the global digital team nearly 40 percent in the first six months of 2022. Over a three-year period, it is committed to triple the size to 1,800 colleagues globally while strengthening e-commerce, upgrading digital infrastructure and driving an enterprise-wide digital transformation.'

[landphieran]

I have a hard time understanding how people are willing to spend 50-60 dollars on 60291 Modern City Home. Yet alone 80-100$ as an investment target. Are all city and friends sets a 50% required minimum to make it investible?

[Shortbus311]

I have a hard time understanding how people are willing to spend 50-60 dollars on 60291 Modern City Home. Yet alone 80-100$ as an investment target. Are all city and friends sets a 50% required minimum to make it investible?

I got my 14x 60291 for $15 each during summer 2021 Walmart clearance cycle. I was visiting family though when I found them and still haven't had a chance to bring them all home.

Sent from my SM-G996U using Tapatalk

[keymomachine]

16 minutes ago, Shortbus311 said:

I got my 14x 60291 for $15 each during summer 2021 Walmart clearance cycle. I was visiting family though when I found them and still haven't had a chance to bring them all home.

Sent from my SM-G996U using Tapatalk
 

It's called Family House for a reason!

[Pseudoty]

Finally, almost 4 months later, 2 sets above $100 that got price increases went TOOS on Lego Online: Hogwarts Icons and Home Alone which is still a bargain at $300 based on PPP/PPG. I wish I could get more at the $215 price but Zavi now has their deal at $269.

https://us.zavvi.com/lego/all.list?search=Lego

Edited November 22, 2022 by Pseudoty

[Pseudoty]

Even with price increase profits were down 11% YoY. 
 

https://www.lego.com/en-us/aboutus/news/2023/march/2022-annual-results

PRELIMINARY INSIGHTS:

Some fun stats:

• Net profit margin -11% YoY
• US$786m spend on licensing, up 22.3%
• Raw materials cost up 24.4%, Sales & Distribution (read discounting) up 27%, and Production costs up 20%

Edited March 7, 2023 by Pseudoty

[Kevink24]

How Lego Beat Barbie and Monopoly – Wall Street Journal
Maker of colorful toy bricks reports sharp rise in sales, pushing further ahead of U.S. rivals

By Trefor Moss 
Updated March 7, 2023 5:55 am ET

Less than a decade ago, Lego A/S inched ahead of Barbie maker Mattel Inc. as the world’s
biggest toy company.

Today, the maker of those brightly colored bricks is generating almost twice the revenue of Mattel,
outpacing both it and rival Hasbro Inc., maker of the Monopoly board game and Nerf
guns, through the pandemic, recent supply-chain tumult and soaring inflation.

On Tuesday, Lego said sales for 2022 rose 17% compared with the previous year to 64.6 billion Danish
kroner, equivalent to $9.27 billion. Net profit was up 4% to 13.8 billion kroner.

Lego Chief Executive Niels Christiansen credits investments it made in recent years in new stores and
products, as well as in e-commerce and digital engagement. Despite the economic turbulence stemming
partly from Russia’s invasion of Ukraine, last year’s performance exceeded Lego’s expectations, Mr.
Christiansen added.

“Overall we are very satisfied,” said Mr. Christiansen. “In a year with a lot of challenges [we achieved] a
bottom line growing compared to the year before.” And, he said, “we reached more kids than ever
before with the Lego brand.”

The widening gap between Lego and its rivals has been driven by success in tapping new markets such
as China, engaging new generations of fans with the help of movie and videogame tie-ups and
piggybacking on the appeal of other popular brands, notably Star Wars, with themed sets. The company
has also benefited from rolling out more of its own stores and having its own dedicated factories, close
to end markets, which have allowed it to largely avoid supply-chain snags.

The Lego City and Icons series—sets that include police and fire stations and vehicles, and a newer
range of more challenging builds that include sets based on famous landmarks—were among the
brand’s bestsellers last year, alongside its Star Wars and Harry Potter franchise tie-ins, the company
said.

Lego has also pushed into digital play. Last year, it said it had success with products such as the Lego
Builder app and the “Lego Star Wars: The Skywalker Saga” videogame. The company’s digital activities
are still primarily about drawing children into the Lego experience and encouraging them to buy
physical toys, Mr. Christiansen said.

Those digital efforts will expand this year, with Lego and its partner Epic Games Inc. planning to launch
a child-friendly version of the metaverse following a $1 billion investment made by the toy maker in the
U.S. videogames developer last year.

The 90-year-old Danish company’s performance stands in contrast to the downbeat results of other
leading toy makers, which blamed the economic volatility and soaring inflation of last year for sluggish
sales.

Last month, Barbie maker Mattel said its 2022 sales were flat at $5.4 billion compared with the year
before, while annual revenue at Hasbro declined by 9% to $5.9 billion. Both U.S. toy makers endured a
tough holiday period in which sales were down significantly compared with the same period in 2021.
Hasbro, which makes toys including Transformers and Play-Doh, said it would lay off 15% of its global
workforce after its disappointing holiday performance and as it forecast a tough market for toys this
year.

Lego, meanwhile, said demand for its brick sets remained strong over Christmas. Investment across all
product categories and price points enabled the company to appeal to consumers irrespective of their
spending power, Mr. Christiansen said. Moreover, parents continue to buy Lego for their children even
in tough economic times because they perceive it as an educational toy that will remain in use for many
years, he said.

Still, profits at Lego grew modestly relative to the rise in sales last year. Mr. Christiansen attributed this
to exceptional growth in the prior year. He also said the company wasn’t entirely immune to economic
challenges last year, with higher costs for raw materials and transportation denting profit growth.
Lego responded with single-digit-percentage price increases in around one-third of its product range in
September, while holding prices down on the rest, Mr. Christiansen said.

The company opened 155 new stores, many of them in China, over the course of the year, offsetting the
decision to close its 81 stores in Russia in the wake of the country’s invasion of Ukraine. Overall, the
company said it reached a total store count of 904.

Looking ahead, Mr. Christiansen said Lego expects revenue to increase by a single-digit percentage this
year. To help meet growing demand, the company is set to open a new factory in Vietnam this year, and
another manufacturing plant in the U.S. in 2025. 
 

[Darth_Raichu]

4 hours ago, Pseudoty said:

US$786m spend on licensing, up 22.3%

 

3 hours ago, Kevink24 said:

were among the brand’s bestsellers last year, alongside its Star Wars and Harry Potter franchise tie-ins, the company said.

🤔 🤔

[Pseudoty]

 

[exciter1]

22 minutes ago, Pseudoty said:

 

Very honest and quality video.