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Comments
Before that, I could regularly find sets at MSRP, as long as it wasn't a licensed theme. (Alien Conquest, Atlantis, Ninjago, City, Creator) were all for the most part, free of markups. As long as you stayed away from the licensed stuff, you were OK. In fact, I got the whole line of AC and 2011 Atlantis from TRU for 25% off.
Now the situation has changed, 25% markups are the norm. Some markups, like the Catwoman set, are above 50%!
2011 was a great year for buying LEGO from TRU, if you were careful.
If you're into licensed themes, you might as well not even set foot in a TRU. Buy from [email protected] if you don't have a local LEGO store. The 5% rewards from the VIP program will cover your shipping expenses.
I know if I were a parent and thought that TRU prices were the norm, I might buy less and less Lego going forward, or might even skip the brand all together.
I would think TLG would recognize that the outrageous pricing policies at TRU might hurt TLG's business and the size of its customer base into the future.
But I would say if you are going to buy a set at RRP, then I would buy from LEGO to at least get VIP points.
I am hoping the insanity stops after those who got massive rewards rebates for the holidays cash out their coupons (or they expire at 2/28 I believe) then prices should be back to normal.. if not then they will just keep losing money to Walmart and Amzon and the silly thing is they probably be oblivious to this fact...
Hopefully, sanity will return to TRU in time.
I think they were trying to leverage a monopoly against the big department retailers like Target and Walmart by taking over all their toystore competitors. So if you wonder why there are no other exclusive medium-size toy shops left, this is part of the answer.
Seeing that their former competitors are either clones are shuttered, TRU had no intention of investing in these stores to continue their separate and distinct identities (notably with FAO), and more importantly bought at a high enough price to discourage other investors who might have done so.
I have never had so much trouble finding things to buy when the store is paying me to shop there as when I am trying to use rewards dollars. I have left numerous times empty handed when trying to spend these rewards. I do feel like I am missing out on the newest sets to hit shelves by not going to TRU but I can wait because I'd rather not waste my time shopping there.
Now that my rewards are spent I'm done there for a while.
The prices at TRU are bad, but it's not gouging. Gouging implies that TRU is taking advantage of one by reason of its monopoly or scarcity of product. None of this applies - LEGO isn't scarce, and TRU has zero monopoly power. It can do what it wants because it operates in a free market. Obviously the pricing works, because people shop at TRU and the shelves were bare after Christmas.
As long as its a free market we are all free to choose where to shop. Those who shop blindly do so at their own peril.
Meanwhile, TRU has two separate bins of series 5 CMF: one says 2.99 the other says 3.49. They don't seem to be moving.
We will have our first Lego store in the state of TN within a few months, and I'm wondering what that does to the local TRUs business. TRU does have some advantages (other toys besides Legos), but I can't see too much patronage from Lego shoppers at TRUs if there is a better option that is closer.
Obviously saavy buyers and LEGO enthusiasts (and their parents) know about the LEGO store and generally about their pricing being better. But the average parent of a kid who gets only an occassional set, or for a birthday party, or a grandparent or something mostly don't even know the LEGO store exists.
I tried both Target and Walmart in my locality. Technic sets are hard to find at both :(
How about small independent toy shops that have to raise prices on LEGO because they don't have the business volume to charge retail? Are they evil? When a grandma on a pension shops there, is it jarring to you when she's overcharged because the store essentially has to charge more to remain in business? Is it okay because it's not some "big and evil" company like Toys R Us?
I agree with @streeker grandparents and parents don't necessarily know what their kids want, so price checking is kind of hard. I figure its something like "oh Timmys birthday is coming up, lets go to the Toy store to get him something" So off to TRU they go, pick out a LEGO set, and inadvertently pay 20% more than its worth. That's what I have a problem with.
But as many have stated the way to fix this is stop shopping at TRU. So I have. Didn't even use my TRU rewards coupon cause I couldn't find any way to pay less than retail for any set I wanted other than CMFs..
People constantly bid up items on Ebay higher than current "Buy it Now" prices. There are examples of people overpaying in every industry. "Buyers" set the market -- not sellers. TRU cannot get their higher prices unless "buyers" are willing to pay it. I imagine for a lot of people the convenience of a greater selection and quantities on hand is worth the higher prices. When my relatives ask what my kids want for birthdays and Christmas I always tell them to avoid TRU because of the higher prices. But, some of them would rather not go to the mall or somewhere out of the way to save a few dollars. Its just not worth it to them.
I've stated before that I think TRU's sales/price practices are deceptive much of the time. But I have no problem with their higher prices in general. I just shop elsewhere.
(I realize single people and small business don't have as much overhead, but I left that part out cause my argument sounds better without it :D ) Well said, as I mentioned before, I don't shop there either. To point out something I think we've overlooked, is that for ME they cross the lines when many of the HOLIDAY prices didn't go down. I don't mind a 10% increase or a couple bucks here and there. I still bought stuff because of convenience, but now that the increases are up to 20-25% I think it's getting ridiculous.
I think in the end the current, insane TRU pricing reflects way more poorly on TRU than the LEGO brand. People will catch on. "WTF I saw this LEGO boat at Target for $30 less!"
But there are plenty of other places to buy from, with just a few exclusive exceptions, and even then there is shop.Lego.com. The problem with the prices is not the company:
It is the consumers. Some grandmas get duped here and there to be sure, but many are just people too lazy to even check the Amazon prices on their phone while they are standing there. And as mentioned by others, even when it is pointed out to them, many will just pay for what is right in front of them at crazy prices rather than go a half mile for rrp or less.
Ultimately, the old rule is still the right one: Caveat emptor!
It is difficult for me blast them too much, because Amazon and Target will mark up LEGO prices above retail at times. I figure it simply has to do with supply and demand. Just like it is on eBay.
So, through their chosen methods of distribution and in partnership with their business partners e.g. TRU, TLG is forcing "artificial" scarcity in order to influence the supply/demand relationship and thus drive up prices?
How many of us are interested in LEGO because of its high prices rather than the endless play/display possibilities? As a non-reseller, I for one will always be willing to pay a little more for quality (vs. Megablox or whatever), but these companies are fooling themselves if they believe ever-increasing prices will make me want to buy higher volumes of these toys. Maybe all the resellers welcome this strategy though, as it helps them make a living this way...assuming that the public can still afford to pay secondary market prices!
In any case, I will say it again. Lego, TRU, or any other company, can only charge for a product what the consumer is willing to spend. They cannot "artificially" raise prices. They cannot simply charge what they want and get it.