Mini-Modular Set

BrickDancer

Just noticed on Lego.com that the mini-Modular set got pushed back from Jan. 1st to now Feb. 1st. Since it states its only for sale to VIP members, do you think Lego will strictly adhere to this rule? If so, this might be a nice set to pile. Moderate pricing, popular theme, and scarce from day 1. Any thoughts or inside information on this set guys?

LegoFanTexas

Since it is free to become a VIP, and since "exclusives" don't tend to stay that way for long, I'm not sure it is such a big deal.

The whole thing looks nice, but the price for the part size seems expensive.

legoDad

I like the set but when they do these exclusive to ViP members is just to get more people to sign up.

BTHodgeman

The price per part is actually lower than the other modulars. The mini modular set is 5.9 cents per piece vs. an overall average of 6.75 cents for the other modulars. (A 12.5% lower price per part)

I think the price is actually great. I'm surprised they didn't price it $89.99.

Brent

BTHodgeman

One way to limit who could get it would have been to require VIP dollars to buy the set.

Plus, that would be a nice way to get reward balances off the books, which I'm sure they'd like, since technically, the reward balance is a liability from an accounting perspective.

Brent

BrickDancer

For ~$80 USD, its 1356 pieces, an amazingly high count for such a small set (5" tall and 12" long). But mostly 1x1 plates, so it doesn't compare evenly with normal sets or modulars by the piece equation. Especially since there's no mini-figs.

But LegoFanTexas has a good point that exclusives don't stay that way usually. Hopefully they break that trend with this first miniature (or have they done miniatures before?). As long as its not available off the shelf at a brick-mortar Lego store, it might be scarce enough for longterm potential. Just have to wait and see after the first month of release...

Istokg

When I was a kid... we didn't have a micro or minifig or any other scale for building except one.... The Town Plan scale...(which did have a few micro scale buildings). I know that this was decades before some of you were even born, but I consider the Town sets of 1960-65 as the "golden years" of LEGO town building! If you wanted to build a 10 story building, it was the perfect scale for affordable building, without losing detail. And it mimic'ed the HO Train System in specialty parts that didn't look abstract, and there wasn't any need for SNOT techniques or jumper plates to make nice buildings. Not a rant... more of a lament... ;-)

brickmatic

Plus, that would be a nice way to get reward balances off the books, which I'm sure they'd like, since technically, the reward balance is a liability from an accounting perspective.

Perhaps, but rewards act like a rebate. It's 5% off all sets, but they get to hold onto your cash while you wait to spend the VIP points. Holding on to cash is nice. It's like a loan without interest. Not sure they are in a rush to have VIP points redeemed.

Yellowcastle

^ And much like giftcards, I'm sure there's a significant percentage that go unredeemed.

LegoFanTexas

Off-topic a bit, but not too much...

As of January 2005 (the most recent date a Google search turned up), a total of 14 trillion frequent-flyer miles had been accumulated

http://www.economist.com/node/3536178?story_id=E1_PVPGTSR

If everyone tried to use them all at once, I'm sure it would bankrupt every airline.

Lego is probably counting on most of those VIP points never being used.

Jenni

I think Lego would rather you used 400 points to get $20 off the pet shop than them not getting used at all. I bet it's as much to entice loyal customers to extra purchases as it is to compete with other vendors.

brickmatic

^ I think LEGO would rather you buy the pet shop without using your 400 points than use 400 points to get $20 off.

Back on topic, I think the mini set is really cute and well executed. I'd like to get one. Also, it might be neat making a modular building that is a tourist center that features the mini houses as a scale display of the town. So meta.

MinifigsMe

^ one of my plans for next summer's diorama is an amusement park. Luckily I have some lovely fabuland sets to help out with it. A mini village would also be nice to include - thanks for the idea :)

DavidBrickley

I'm kinda going with the same idea for my Lego store MOC. On the second floor, there's a "museum" where "large' builds are displayed. I'm using the microbuild Millenium Falcon from an advent calendar to represent the UCS falcon. By minifigure scale, that thing is huge!

Ma1234

It will be available January 1st in physical stores. It is delayed online because LEGO is working on a new VIP shopping portal, which won't be ready January 1st as hoped for.

It's staying VIP exclusive, make no mistake about that.

leemcg

^^^^ @LegoFanTexas Sorry to stay off-topic! One of my best friends runs marketing for the UKs biggest loyalty scheme (his email address is ...@loyalty.co.uk!) and you're absolutely right - although the airlines would be okay. The reward schemes are generally run by separate companies. Their entire business model only works because of the relatively high proportion of permanently unused points/miles.

I'm not sure LEGO VIP points work at the same levels of non-redemption though - it's pretty easy to spend £5 or $5 on LEGO.

BTHodgeman

@Brickmatic - I would agree that consumers see it as a "rebate," but LEGO definitely does not count it as cash on hand. LEGO probably counts it partially as a marketing expense (afterall, they love the consumer data that it brings, and it allows them to more effectively target promotions to subsets of their customers).

If every VIP was to turn in their points at once, LEGO would have a lot less product and have received no additional cash. That is why they must count it as a liability for accounting purposes.

I'm also not saying that they're in a rush to have VIP points redeemed, but there will come a point (likely many, many years down the road), where they will reevaluate the program and/or encourage the use of limited numbers of points. There will be a threshold where they determine they can't have that large of a liability on the books.

@leemcg - I'd believe that the unredeemed amount is much less than with airlines where you "have to" build up a huge amount to use any of your miles.

Brent

dougts

Was talking with some store employees about this item today - they basically had no idea about how stringently the VIP only aspect would be enforced. What are they going to do, turn down the sale if someone doesn't want to enroll?

My major question is are they going to prevent you from buying more than one of these per VIP account? I can't imagine they would, but who knows.

I have no interest in the item myself, just curiosity mostly about how this is implemented

BTHodgeman

My guess is that the register won't allow the sale unless a VIP number is entered... that doesn't mean that they couldn't enter a random number...

I would also assume that most people who are interested in this set are already VIPs.

Brent

brickmatic

@Brickmatic - I would agree that consumers see it as a "rebate," but LEGO definitely does not count it as cash on hand. LEGO probably counts it partially as a marketing expense (afterall, they love the consumer data that it brings, and it allows them to more effectively target promotions to subsets of their customers).

The cash you provided them when you bought the set is an asset. The dollar value owed to you via the rewards scheme is a liability. That's the balance sheet. The income statement would view the cash from the sale as sales revenue. I don't think the rewards program is an expense in the traditional sense, just like reducing the sale price of goods is not an expense. Also, since the points expire after two years TLG can care less if you redeem them or not. Not redeeming them actually is much better than you redeeming them.

BTHodgeman

According to my LEGO store, they expire after two years of not using the account. (I know the official terms state that they expire at the end of the year two years following the year in which they were earned. If that is indeed the case, points will start expiring this year, by the way...)

Brent

LegoFanTexas

Something else to consider is that they are very easy to use, since you can use them $5 at a time, I wonder how many "large" point balances there really are?

BTHodgeman

I have a relatively large amount... nothing huge, but I'd guess more than average.

Brent

DavidRod8

I have $70 in my account.... Not sure if I should spend them or save them.... I figure I would save enough for a nice set and then redeem it for free... A lot of my purchases this past month has been to Target/Amazon/TRU... I figure the 26th will be a good day to spend some money at Lego B&M and [email protected] I would assume that the other stores would also offer some sales... but back to the topic on hand... It's very easy to spend $5 on legos... having to save 25,000 to get a "free" ticket on an airline? not so easy... can't tell you how many times I have either lost the miles or burned them on magazines or donated them to some sort of charity...

jocappy

I have a relatively large amount... nothing huge, but I'd guess more than average.

Brent

thats what she said...

Farmer_John

This strikes me as a one and done, but that's just me. The regular sized modules are more expensive, yet are much more playable. These mini-modules are like many of the SW poly bags...not even close to scale with minifigures. Kind of odd to be honest...even those SW poly bags are much more playable. This seems like a set that's built like a puzzle and set on a shelf or put back in the box. Perhaps adults might be interested, but most kids wouldn't look at it twice. JMO.

BTHodgeman

I have a relatively large amount... nothing huge, but I'd guess more than average.

Brent

thats what she said...

Lol - Seriously.

Brent

BTHodgeman

This strikes me as a one and done, but that's just me. The regular sized modules are more expensive, yet are much more playable. These mini-modules are like many of the SW poly bags...not even close to scale with minifigures. Kind of odd to be honest...even those SW poly bags are much more playable.

Yep - they are definitely "display" sets. That is how I treat all of the modulars though.

Brent

evilempire22

Picked up this set today at the Mall of America Lego store. Was asked to produce my VIP card, so they are checking before selling them. Used my recent Lego catalog 10% coupon.

--Evil

dougts

my local store manager filled me in on the sales policy. if someone walks up to buy one and isn't a VIP, they are told they have to be a VIP to buy the set and offerred enrollment. if they absolutely refuse to enroll but still want the set, they have been instructed to sell it to them anyway.

apparently the goal is to sign up more VIP members, with possibly a second hand goal of making being a VIP seem to have more apparent value.

the manager said if they really wanted to do this VIP only thing, they should have just given a small discount on the item to VIP members over non-VIP members.

brickupdate

I'll be picking this up with the 10% catalog coupon as well.

LegoFanTexas

I just saw it in the store today...

Meh was my responce, it just didn't look that impressive. Will I get it? Maybe... but I left it there, and I had a lego gift card to spend. :)

They did say lego friends was flying off the shelves...

princedraven

Got mine from Stratford, London.
Had plenty and Did check I had VIP card.
They are out of cards so don't expect to sign up there and then. Should get more soon, but would call to check before going.

Matthew

^ What happens if you sign up in store? I thought they posted it to you, do they print your name on it in store? How is it linked to your LEGO ID?

princedraven

Oooh good question, I never really paid much attention as I had my card with me, but he did say if I wasn't a VIP they couldnt sell it to me as they couldnt create any new cards.
Maybe I misunderstood him and what he meant was they couldnt enroll a new VIP as their systems were down or something (sure he said no cards, but hey you know how it is when you are surrounded by Lego!).
I did not get the impression that you are limited to just one copy per VIP. Pretty sure I could have bought as many as I wanted.
TBH I have to agree with all the other posts and think this is just a gimic to get people to sign up and therefore become more regular buyers.

GIR3691

I've talked to someone who bought 6 of them in one trip to the store. It's at the manager's discretion, and YMMV.

LegoFanTexas

I just stopped at the local store today to pickup a few things, they had not sold a single mini-modular set in the past 24 hours...

They said they had very little interest so far.

Weird...

dougts

I don't think it's going to be a great seller myself, but I have nothing to base this on other than my own musings.

AFOLs are already going to have the full size ones, or be working on getting them. Some subset of this group might by the mini instead, or as a small desktop piece or something.

anyone outside of that group - why would they buy it? It's not going to appeal to kids at all. And anyone who isn't a fan of LEGO isn't going to have a frame of reference, which is the "hook" to this set.

Maybe I'll be proven wrong, I dunno.

Odindusk

Yeah I agree - I have no clue who this set is marketed at. Maybe tight-budgeted AFOLs who can't dish out the $3K (or w/e) for the set of full-size modulars?

I can't see many children choosing this out of allll the other wonderful options out there for them. Maybe a random genius kid builder who is all about microscale stuff?

BTHodgeman

@dougts and @Odindusk -

I think it will likely appeal (largely) to the same group of AFOLs that already have (or are working on acquiring) the full-size modulars.

I know I'm really excited to build this and put it on my work desk. It's a good-sized display and conversation piece :)

Brent

Eric

^ Yep, I think I'm the one who this is aimed at, I don't the money, or the space to keep the full size modulars, and I'm actually very keen to get my hands on it. I just hope that Lego keep releasing these mini modulars, to keep the row up-to-date as new full-size ones are released. Don't get me wrong, if I won lotto, I'd be all over Bricklink, but until then the mini's will have to do. :P

BTHodgeman

My guess would be that LEGO will release these in "sets." I don't think they'll release them one-by-one, although they could probably sell individuals at $25 apiece vs. the $80 price for 5.

Brent

richo

My best guess is this will not be a great seller, both while it is available direct, and also on the after market.

Just a hunch, mainly based on the fact I can't work out who the target market is (and my degree had various modules in Marketing).

We can only but wait and see.

BrickDancer

I'm in Sales & Marketing professionally and do not see this set performing well on most standard aspects, such as playability, pieces for parting, collectibility, etc. But feel this set's future desirability will be mostly dependent on novelty and scarcity factors. That's why I'm very interested to see how many sets are sold and how controlled the 'VIP only' aspect is. From the statements above, it does not look very controlled but the tepid initial interest may keep total volumes low. Must wait and see how it rolls out over the next few months to decide if I'll stock a couple for resell down the line.

Bosstone100

I'll be buying it. I may get into microbuilding also so this a good start.

sidersdd

I'm passing until I can get a discount.

brclark82

Interesting feedback from everyone, not what I expected. I can't wait until my next meeting scheduled in Chicago so I can stop by the Lego store and grab one!

Jenni

We're planning to get it, we find microbuilding fascinating, and this one is so well done.

LegoFanTexas

At $50 I'd buy one, at $80 I'm just not interested...

But then I'm building the real modulars, so not sure what the appeal is to me for this... I am skipping market street, so if I bought this, I'd probably leave that out as well, I think it is ugly (just my opinion, it doesn't match the others in the series).

If I knew 100% for sure that they would sell "true-up" single sets to keep it current with new releases, I'd be slightly more interested, but otherwise you might end up with an orphaned set. Funny thing is, by not buying it now, we're all making that more likely...

It may sit around for awhile, but if Lego comes out with a $25 "add-on" Pet Shop to make it "current", they might suddenly start selling them as people will then go "oh, so I can collect this instead of the modulars", thus securing their investment.

Only problem with that from TLG's point of view, it may cut down the number of full size modular sales.

BTHodgeman

@LegoFanTexas - Market street was fan-designed, rather than "LEGO designer-designed," which could have something to do with why it looks different from the others.

Also - I remember watching a Youtube video several months back from LEGO, with a designer indicating that they already built the sets and gave them to everyone involved in the design process.

That being said, this is probably just a way for LEGO to get some incremental revenue without much expense. The sets were already designed. All they needed to do was create retail packaging :)

Brent

dougts

When this came out I was disappointed that Market Street was included and Pet Shop was not. I think it would look better and make more sense if they had made that exchange.