Why Are Legos So Expensive? Here Are the Top 5 Reasons

Recently, I had a conversation with a friend who, as an adult, decided to give up his childhood hobby of building LEGOs. He asked if my kids would play LEGO and then lamented the high price tag for the set. , he was so excited to buy and build the limited edition LEGO Millennium Falcon set and was appreciative when he discovered it was $800 new and was being marketed for up to 4000 dollars. regular LEGO sets, but find them under $800, but still expensive.Several questions arose during that conversation; Why do we persist with LEGO despite agreeing that sets seem expensive?What about LEGO competitors? Since LEGO lost a trademark lawsuit in the European Union, where the company tried unsuccessfully to argue that no seller could sell LEGO-like stacking blocks, hundreds of competitors have emerged. Mega Bloks, because the blocks seem identical and almost half the price? Above all, I want to know Why is LEGO so expensive? There seems to be a number of factors involved, which I have outlined below, to hopefully answer this question.

Top 5 reasons LEGOS are so expensive

1. Quality & Safety

LEGO is certainly more expensive than its direct competitors, but the company claims higher-quality materials and increased durability are to blame for the price difference. Surely anyone who stepped on a LEGO brick in the night can attest to its power. Each LEGO brick has three numbers printed on the inside, which precisely identify the mold the brick came from and its position within that mold. The idea is that if a bad brick is reported; LEGO can go back and repair the exact mold it made. This is part of LEGO’s brand strategy to deliver a good experience for each customer. It’s not really that easy to build millions of tiny bricks that join together seamlessly to create intricate structures that can then be easily taken apart again and again. They take safety very seriously. The materials are safe, non-toxic and undergo rigorous safety assessments, including simulations where children bite, drop and step on every LEGO part to ensure they don’t break. Your older LEGOs from the ’70s and ’80s can be toxic in fact, but any new set is pretty foolproof, the only problem is babies finding a missed brick in the process. cleaner, which is a potential choking hazard. As Julia marketing director of LEGO. Goldin asserts: We believe that Lego products are unique and offer excellent value for money. In addition, our products meet the highest quality and safety standards and last for generations. They are currently being used by my kids, nieces and nephews and are going strong, integrated with Harry Potter, Toy Story and Star Wars characters and blocks.

2. License Agreement

That fits perfectly into my next point. After losing its trademark contract in 2010, LEGO turned to trademarked content as a way forward. Such licenses don’t come cheap, and LEGO will likely pay a lot of money to Marvel and Star Wars to use their characters and themes. These sets tend to run at a higher cost than regular LEGO sets, and that’s because established businesses take a cut of what’s sold, but that means it increases the price of LEGOs in general. the set they wanted, and since LEGO has the exclusivity, that’s the set they get. Interestingly, LEGO competitors are following suit. MegaBloks has licenses for Thomas the Tank Engine, Hello Kitty, Halo, and Barbie.

3. Advertising & Branding

Two words: LEGO World. 1 toy brand on the planet, and its estimated value puts LEGO ahead of brand number two by about $5 BILLION. 5 billion! LEGO pays huge sums to keep its brand in the public eye and public consciousness, which plays a part in pricing. But price is also part of its brand strategy as it explains and demonstrates durability, quality and reinforces why LEGO’s reputation is so good. The business is owned and therefore does not disclose specific costs and profits for each brick. So we don’t really know if the pricing makes sense, the branding strategy, or how much it will change over time, but will learn more about that later.

4. Research & Development

A large part of that reputation and brand growth is due to research and development. Consider how difficult it would be to build a complex LEGO set without instructions. Now imagine trying to conceptualize that set from scratch. An integral part of LEGOs brand identity is that it is a toy that can be included in the educational or STEM section of a toy store. That means it requires big brains and huge creativity to constantly come up with new, innovative and exciting sets to satisfy everyone from kids to collectors enthusiasts. New bricks and people who just built LEGO all day. materials sector to help them work towards their goal of making LEGO more sustainable. This is a cost that their low-cost competitors will never even account for.

5. Resale Value & Collectors

Another win for the LEGO brand is the sheer number of collectors and enthusiasts it has amassed over the years. These fans and customers are driving the resale value of both limited-edition LEGO sets and simple blocks, all of which add to the myth of LEGO’s dominance in the toy-brick-building world. . now resold for $4000. Another great example is the LEGO Taj Mahal set, the largest set ever made, retailing for around $350 and resold for over $3000. adults are looking to build and display.Read more: why the mountain is full of smoke | Q&A on the recognition of this new wave of LEGO hobbyists, people with more money (they no longer rely on birthday money) and those less likely to use a repeater On the contrary, LEGO has done something that no other competitor can. Additionally, this further enhances the company’s reputation as a leader in the field and is sure to drive up brick prices. and its set up. . These two factors combined certainly mean that these sets have a higher price tag.

Is LEGO Always Expensive for This?

As a parent of a pre-teen, I can attest to LEGO’s expenses. I used to think that if I lost my job, I could collect all the LEGOs in the house and resell them for a profit. their floor when my siblings and I were kids. The hypothesis that the secondary market is responsible for the perception that LEGO is more expensive today than in the past. Likewise, it’s a bunch of relatively new competitors that, with their lower prices, mean we can’t help but look at LEGO and wonder why it costs almost twice as much. with those offering a seemingly identical product. It’s a matter of perception, and LEGO is always about the same price. The question we now have to ask ourselves is:

Is LEGO worth it?

The simple answer is it’s all a matter of opinion, in my humble opinion you can use cheaper competitor products for kids who just want the building blocks simple. As long as you choose a good quality competitor’s product, they are safe and virtually identical and your child won’t know the difference. As your kids get older and start comparing notes with their friends or get to know and become a fan of Star Wars, Harry Potter, Toy Story… the thing to do is use them over and over again. That’s what they’re made for and the more you play, the better the LEGO value. They are also fun activities for parents to engage with their children, which means the value will increase and become almost invaluable as you strengthen the family bond and You can also consider the LEGO sets are high-end models instead of simple building blocks because it makes the price more acceptable. LEGO sets are well made and often beautifully designed, to the point where many children (and adults) want to display them. They may display them for a while and then take them apart to include in new building designs, or they may want to keep them forever, like little works of art. In fact, actor Orlando Bloom has an entire room dedicated to displaying the finished LEGO sets he created with his 9-year-old son Flynn, from 1960s Porsches. to epic trucks. My kids really like that they have some LEGO blocks from when their Uncle was a kid. I hope they will keep them and pass them on to their children and their children afterwards. which we can ultimately justify the cost. Read more: Why inventory should be digital

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