Hi, I am new to this forum and Brickpicker. May I know the best practice to add a free LEGO set into my Brickfolio? Zero amount? One dollar? or Amazon average value? Thank you.

 

DT

Welcome! As a rule i add whatever i paid. So if i recieve something free i add 0.01

Has anyone ever considered allocating part of the cost of the purchased set to the free set based in fair market value of the free set?  I thought about this for tax purposes.  It would give you a cost for the free set when you sell it, thus reducing the net profit from that set.  I actually did the calculation for some free sets I acquired a few years back.  It's an interesting exercise.  

most of the sets have some nominal value from the vendor. You can usually find it on a receipt so that you know how much you will not be getting back of your original purchase price if you return the purchased item, but not the gift. I would offset the value of the other sets by that amount and account for the free set with that amount.

1 hour ago, RedBaron said:

Has anyone ever considered allocating part of the cost of the purchased set to the free set based in fair market value of the free set?  I thought about this for tax purposes.  It would give you a cost for the free set when you sell it, thus reducing the net profit from that set.  I actually did the calculation for some free sets I acquired a few years back.  It's an interesting exercise.  

Not really because you would have to lower the price of the item you purchased. I suppose any way works but i just go with whatever is on the invoice.

In my brickfolio.  I have all my sets given to me as gifts/free as $0.01.  You are buying the set anyway.  So,  put the actual price I paid for the item(s) and the free/gift one as stated.  easiest way to track.  

I love this one. My take is to take divide the total purchase by the total value and distribute it across.

Ex. $5 value GWP with purchase of $50

Required purchase $50/55 x $50 = true cost $45.45

GWP $50/55 x $5 = true cost $4.55

It makes the free set look much less free, but the accounting is sound. 

5 minutes ago, Poly 30286 said:

I love this one. My take is to take divide the total purchase by the total value and distribute it across.

Ex. $5 value GWP with purchase of $50

Required purchase $50/55 x $50 = true cost $45.45

GWP $50/55 x $5 = true cost $4.55

It makes the free set look much less free, but the accounting is sound. 

The only problem I have with this is determining the 'value' of the set.  If you're speaking of MSRP, I suppose that'd work.  But it's not very often that many companies give an accurate value to the freebies they offer.  I treat a set I buy that includes a free gift like I do every other set;  the price a store charges me for it plus any other fees such as taxes, shipping, handling, etc.  The free set is, well, free, so it goes on the books as 0.00.  The accounting is sound on that one as well.

@Loghamel, your way is sound as well, don't get me wrong. The reason I distribute is because I would not necessarily have bought from The LEGO Store, so I feel it best account for the RRP purchases required to obtain the GWP in this manner.

I generally give the freebie a value of $5 or $10 mainly to avoid a divide by zero error in my spreadsheet.