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Comments
Anybody in the Atlanta area want to order an extra of each for me to pick up from you? :)
It seems a bit strange that they're converting a 'whoops, we really didn't want to make these' into a 'buy 'em quickly, as we only made 5000 of these'...
I suppose this indicates that a run of Brickheadz had a minimum of 5000 units. Go only one can guess how many runs they had of the SW and SH Brickheadz.
Now, I have a RedCard which I’ve resisted for so long. I just gotta make sure to pay off the balance quickly.
Damn, Lego.
I had to tear the house apart looking for my Red Card and forgot that there was a security breach at Target several months ago and they issued us a new card. My wife happened to have the card and I couldn't get ahold of her for awhile.
Being online only isn't a surprise, but having it be a Red Card Exclusive kinda surprised me. They should last a bit longer than the Walmart Exclusives seeing that people don't have the Red Card and that you can only purchase (2) at a time.
Had to wait until I got home from work to find my stupid Red Card!
I agree with @Pitfall69 that they'll likely last a bit longer, but I didn't want to chance it, plus I figure that the Benny Brickhead will actually be more in demand than than of the other three.
...it'll happen.
They should have charged $14.99. Silly Target!
I shared my math, and some more wild speculation in this article: https://brickarchitect.com/2019/2019-year-of-the-exclusives/
Love to hear more speculation, or see if I made any errors in my analysis and estimates.
---tom
Also, I'm really wondering how many of the last wave of brickheadz were produced. I know that there weren't too many produced but I do see some lingering around.
(Using your calculations in this case, the $100,000 in gross revenue to LEGO. Thus, LEGO would be generating $25,000 in profit on a product that had $200,000 in total sales revenue.)
However, I am aware that the wholesale price for retailers is closer to 75% off of MSRP. Using that factor, LEGO's profit margin would be approximately $12,500 - which is just about the same as your result using the other formula.
My rampant speculation is that the profit margin on sets varies greatly when you factor in production volume, licensing, pricing, actual design time, etc. - and ultimately sales. I'm sure the margins on Police Stations and Helicopters is significantly higher than Tower Bridges and Death Stars. (Or maybe the profit margins are way higher on those high-priced sets because production costs are comparatively cheaper than making Brickheadz. I don't think we'll ever know - as we've never seen a breakdown on the profitability of individual themes or sets.)
Love the article!
YMMV!
Out of all the sets/minifigures Lego produces; how many of those are regional exclusives? I see a lot of people bitching and complaining about this, but those same people get their own regional exclusives. I'm still trying to get my hands on the Marvel Bricktober set. Also, it must be nice to have the Flagship in Leicester. Where's my exclusive Grand opening Lester or limited numbered Black VIP card?
Nobody at TLG is going to lose sleep over people complaining about these Limited Edition Brickhedz. It creates buzz and it really doesn't matter whether it bad or good; it gets people talking about Lego. The high aftermarket prices of Lego just means that their brand in strong. There are always people that say "I've had it with Lego and their stupid exclusives", but those people still come back. We all know that people like us make up a small portion of Lego sales, so if a few people quit buying Lego because they are fed up; it won't hurt TLG at all.
Another inside joke is my love for My Little Pony and they have had a decent amount of exclusives, short packs, exclusives, limited production and even regional exclusives.
I think that maybe Toys R Us is probably more to blame than TLG for all the craziness in distribution of recent "exclusive" sets like the Bricktober Series this past year.
People still buy Hess trucks every year. I really hope they don't expect to sell off those collections to fund their retirement...
I think LEGO does a pretty good job balancing promotions and selling their primary product with the allure of the collector market. LEGO probably approaches the market from volume, not from focusing on 1% that is the collector.
(And Mr. Gold isn't a symptom of that problem. The SDCC exclusives and things like the Bat-Pod are more in that category.)