History of TLG discounting Exclusives

BigH

Grateful if anyone can help with this query.
Would like to know the track record of TLG discounts on Exclusives and UCS, as I have only been following for a few months and seen what happens with the little sales, but would like to know if there has been a trend of any sort.
Asking due to being a bit pee'd off buying in the sale, then walking in last week and noticing bigger reductions! So not wanting to make the same mistake on bigger purchases.

CCC

In many sales they discount once, then discount the stuff still left further. That's what Lego has done. Sure, you could have waited for 50% off when the discount was 30%, but you risk missing out completely. 

BigH

As I've just experienced! 
Just wondering what's happened with the exclusives, just like everyone else, don't want to pay full.
And just like all the speculation/threads, I witnessed a bit myself. I.e. Asked bout ToO the answer was-We've got about 3 left, the next week another guy tells me... About 17 in the store room!

CCC

Yes, they have regular deliveries to restock.

BigH

Suppose every model is different, supply demand etc. just thought there may have been a trend and wanted to know, but no great worry in keeping tabs on all outlets and being patient.

dougts

Be happy you still get discounted exclusives at all.  Been two years since the discount ban here in the U.S. 

BigH

But I thought yours where cheaper than here any way!

dougts

Not necessarily. Take the Ferris wheel for example.  subtract out the 20% UK VAT and convert to USD and it comes in at $194, 3% cheaper than the U.S. price.  Now get it on a 20% discount and it isn't even close anymore 

leego76

Subtract the VAT?? 20 discount?? Chance would be a fine thing!

15% on VIP day will be about the best deal for the foreseeable

dougts

Well of course you have to subtract the VAT to get an accurate comparison. That is added on by government, not LEGO.

even at 15% off it still comes in at $165, a full $35 (17%) cheaper then we can buy it for in the States

so yes, you are fortunate you still get the discounts at all

Ma1234

leego76 said:

Subtract the VAT?? 20 discount?? Chance would be a fine thing!

15% on VIP day will be about the best deal for the foreseeable

Americans don't have to pay VAT when buying from Amazon's European sites to ship to the States. 

CCC

Amazon don't sell [email protected] exclusives though do they?

Phonebooth

Don't forget that you also have to pay sales tax in most US states, usually ranging from 7-10% 

Brick_Breakdown

I dont see many sales other than 25% I got off my eiffel tower when they were trying get rid of them and 35% off the winter village bakery after christmas when they were trying to rid of them. I don't think they do discounts like that anymore. 

They also do black friday sales which is normally triple times to points or 10% off but they didnt do that for 2014 not sure if theyll bring it back so I didnt buy anything this christmas except for a sydney opera house. Hoping they bring back triple times the points. 

shotgunchipmunk

TLG doesn't discount exclusives.  Even damaged boxes go with bonus VIP points instead.  They're very serious about the no discount policy as well; if a store sells an exclusive at a discount, production on that set gets shut down.  That's why the Simpsons House is currently unavailable despite its popularity.

Brick_Breakdown

shotgunchipmunk said:

TLG doesn't discount exclusives.  Even damaged boxes go with bonus VIP points instead.  They're very serious about the no discount policy as well; if a store sells an exclusive at a discount, production on that set gets shut down.  That's why the Simpsons House is currently unavailable despite its popularity.

This is true I was talking to sales clerk about what he was going to do with a exclusive set that had serious hole in the back (like 3 feet long) and he said either add points to it like about 200 or 300 I think he said or not sell it at all. Staff some times take these damage sets home themselves. before they'd put a 50% discount on the set like my white house set (not exclusive). 

BigH

That's what I've been looking for. Is that what happens in the UK also? Anyone got any info on previous exclusives?

juggles7

shotgunchipmunk said:

if a store sells an exclusive at a discount, production on that set gets shut down.  That's why the Simpsons House is currently unavailable despite its popularity.

That sounds like the company punishing itself because of a mistake that a store made. I don't think the company would do that. They might warn the store or even stop shipping exclusives to that store, but I doubt they would stop production.

ryjay

^ I think that is what he might mean, that the store gets shut down from receiving exclusives, not actual lego production is stopped.

shotgunchipmunk

Nope, production stops.  Like I said, that's what happened with the Simpsons house, which should be coming back in the next couple of months.

The reasons as I understand it are two-fold.  First, to discourage people intentionally damaging the boxes in hopes of it getting discounted.  Second, as part of TLG's efforts to get exclusive/hard-to-find sets into the hands of people who build over re-sellers.

Shib

@shotgunchipmunk - what is your source on that? It's such a ridiculous idea that I don't believe it for one moment.

Production schedules are worked out way in advance, and run by a completely different branch of TLG than the retail side of things. There's no way that a discount coming up from one specific store would make them go to the factories and change what their doing, if anything it would lead to staff at that specific store getting into trouble.

CCC

shotgunchipmunk said:

Nope, production stops.  Like I said, that's what happened with the Simpsons house, which should be coming back in the next couple of months.

The reasons as I understand it are two-fold.  First, to discourage people intentionally damaging the boxes in hopes of it getting discounted.  Second, as part of TLG's efforts to get exclusive/hard-to-find sets into the hands of people who build over re-sellers.

That doesn't make sense. Denying sets to people (including builders) worldwide just because a store (which is in their control) discounted it is ridiculous.

DreamyBongo

I was under the impression they paused the simpsons house to make room on the production line for other sets this summer.

dougts

For what it is worth, I have heard this before - from a LEGO store manager that I had a really good relationship with. They told me that if any of the LBR stores get caught discounting an exclusive, then ALL the LBR stores (at least in the US region) stop receiving resupply of that set for a number of months (6 I think it was)

It sounds absolutely crazy, but there appears to be something to this rumor

Shib

dougts said:

 LBR stores (at least in the US region) stop receiving resupply of that set for a number of months (6 I think it was)

Not getting their restock and completely stopping production are two different things, while this still seems a weird policy it is more plausible than the stopping production.

CCC

Still seems ridiculous. I can understand them punishing the store by not letting them have more exclusives, but to punish all potential US customers for a particular set just seems ridiculous.

dougts

^ Welcome to the world of the US Exclusive Discount Ban.  "Ridiculous" describes pretty much every aspect of it

Draug

dougts said:

For what it is worth, I have heard this before - from a LEGO store manager that I had a really good relationship with. They told me that if any of the LBR stores get caught discounting an exclusive, then ALL the LBR stores (at least in the US region) stop receiving resupply of that set for a number of months (6 I think it was)

It sounds absolutely crazy, but there appears to be something to this rumor

It very well may be true. Here in Canada, the whole time that the Simpsons set hasn't been available at [email protected], it's been available at Walmart. It's been a few months. 

Bumblepants

I don't see how limiting the availability at retail does anything but help fuel the aftermarket. Really weird if true.

dougts

^ true, but I'm not sure the ban has all that much to do with aftermarket/resellers anyway.  I think it has more to do with profits and trying to create a "premium" brand.  They can't force their price control policies on their retail partners if they don't follow them themselves in their own outlets.

juggles7

Imagine giving the power to halt production on a set to some high school kid working part-time at a Lego store. I'm sorry.  I don't believe it.

CCC

If it does work like that then it would probably be worth a reseller stocking up on one set at retail price, then give a youngest kid working there a $50 under the counter cash incentive to give you $50 off an exclusive. Post it all over the internet that you got tge discount, get that set stopped and you're in.

cloaked7

dougts said:

Be happy you still get discounted exclusives at all.  Been two years since the discount ban here in the U.S. 

Well put.  Couldn't help but have an immediate impression about the comment "Been two years since the discount ban..."  It gave me a feeling like when I hear someone say  something like "I can't believe it has been two long years since we had any decent rain." Then you think - has it really been 2 years!?  Then, I think back to how it used to be with a dreamy look in my eyes. 

dougts

CCC said:

If it does work like that then it would probably be worth a reseller stocking up on one set at retail price, then give a youngest kid working there a $50 under the counter cash incentive to give you $50 off an exclusive. Post it all over the internet that you got tge discount, get that set stopped and you're in.

yep.  the insanity of LBR policies

MAGNINOMINISUMBRA

As production is not controlled by a particular set but rather by the collection of individual parts that comprise EVERY individual set in the entire currently produced range of available sets then no. No major manufacturing company would EVER introduce such a variable into their production schedules! However, the restocking policy scenario may bear merit (although I'd assume LEGO is the same as most large companies (with similarly set up sales channels) where their contractual requirements with sales partners generally trump their own restocking requirements....
My 2c...

SumoLego

This is just about the most ridiculous discussion.  Production runs are set months in advance.  Discounts in their retail stores has no impact whatsoever on production schedules.

Thus, why there was a shortage of Cruisers in 2014, but Cruisers abound in 2015?

Why did Exo-Suit demand prompt TLG to produce another bun?

You think TLG would have cut the production of Galaxy Squad sets in 2015 if they knew the demand would be soft?  Of course!  But there is no way to make distribution schedules without physically producing sets months in advance.

Whether a store discounts an exclusive set  has nothing to do with 'halting' production.  It would probably just get the managers fired.

Their goal is to sell product, and not 'penalize' their own customers.

SumoLego

Retail resellers purchase sets at wholesale prices.  Lego could care less what TRU, Wal-Mart, Target, etc., sell the product for retail.  

TLG has already made their money on the wholesale.

They sell way too much product to necessarily  care how it gets into the hands of consumers.

goshe7

^ Why doesn't TLG care about competitors undercutting their rapidly growing LEGO retail store business?  

Why wouldn't TLG care about retailers discounting their product to the detriment of the "premium" brand reputation upon which they have established their pricing?

SumoLego

Not to be glib, but retailers that routinely sell product below the suggested retail price don't stay in business.

Good retailers only discount product to make room for new product that sells at full retail.  (Or above full retail at TRU.)

(And Lego has been steadily reducing their independent toy retailer channel for the last ten years.)

I don't understand your point on competitors.  Larger toy retailers are competition for Lego Retail Stores, but on a national (or global) scale are the main distribution source.

If you're referring to MegaBloks or Kre-O, those get discounted in much the same way at retailers.  (Notice that there are no retail MegaBloks stores?)  Those products are cheaper because they are not premium product.

Lego is wise to open company retail stores in high sales areas.  But that doesn't mean a ton more product isn't sold in the normal retail outlets.

goshe7

I thought the discussion was about the complete disappearance of discounts on exclusives in the US.  The occasional sale or promotion does not qualify as routinely selling below the suggested retail price in my book.

With respect to competitors, large toy retailers may be the main distribution source for LEGO products in general, on both a $ and qty basis.  I'm not so sure they are the main distribution source on exclusives.  

SumoLego

There was a fairly radical change a few years ago where Target was displaying the traditionally exclusive sets in a plastic catalog in the section.

I do agree that there hasn't been a non-promotional discount program for some time.

(For employees, there are special over-rides that the store manager has to input/authorize for any exclusives.)

juggles7

Not to be glib, but retailers that routinely sell product below the suggested retail price don't stay in business.
------------
Amazon is an exception to this.   

SumoLego

^  For some products, but I suppose they justify that with their "significantly lower" overhead costs.  (Although I don't think they've actually made any money - but you are correct that they are still in business.)

A fine point - but taken.

Let me put it this way - TRU, K-Mart, Target, Wal-Mart are not generally in the business of cutting their margins on products to the wholesale cost.