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Comments
I'll get my coat...
I really enjoy my Lego hobby, but part of the fun for me when I shop sets is getting a good deal (or at least what I perceive as a good deal). With TLG taking away discounts on the exclusive/larger sets that I (as an AFOL) enjoy building, the thrill of the hunt is gone. Over the past few years I really anticipated BF and the after Christmas sale; this year I've lost a lot of the passion. I have to believe that most of the regular big spenders on Lego sets are of the same mind...if only to have more money to spend on other sets. I wonder what TLG is thinking here?
Their loss, Amazon and Targets gain. I suppose TLG still gets the sales, but a smaller percentage of it...
Oh well...
I think it's pretty arrogant of Lego to assume customers will buy their premium products at full price, especially considering people like me simply wont buy them at all. Maybe I'm frugal (ok, cheap lol), but I can't be the only one not buying product due to this new pricing policy. I just don't see how that's good for business long term. But, as has been discussed, maybe they're not interested in the long term and their new pricing policy is part of a strategy to sell the company for maximum value. Who knows.
It is even worse when all the 45+% off deals were happening online right around Black Friday and beyond. Jabba's Sail barge was 47% off on Cyber Monday on Amazon.
Kinda hard to get excited about 15% VIP points (that have to be spent later) and a free Christmas set, vs. those kinds of deals.
Considering that I still have my pair of SSDs purchased for about $250 from Target last year, the deals today on exclusives suck.
Just my opinion. :)
And lets all remember that it was only 8 months ago that we had B-Wing for 50% off at the LEGO Retail Stores, so this is a recent policy.
Is 50% off required? No, but imagine how many SSDs the retail stores could move at 25% off plus a free Christmas set.
Frankly, those two are actually gone, replaced by others, but I like to look at the last 2 on the shelf and imagine that they are those two specific sets.
I still haven't built one, so I may just open one and build it, when I get the time...
At least be consistent.
16 months ago when the $250 price was around, it was way too early to be stocking up, so I only bought two.
I have since bought and sold (and traded) many more, today I'm back to two, because frankly I don't think it is going to do very well.
At RRP, it is a very slow seller, DS continues to outsell it 5 to 1. Given how long DS has been out, that is a rather sad statement on SSD.
I said when it launched that it wasn't big enough, it should have been 1,000 more parts for $100 more and a foot longer, with a proper underside. As it stands, it is too big and expensive for the average fan and not "ultimate" enough for the hard core fan.
A) If you can sell them for more than the discounted price, then presumably LEGO can too - and I mean, they are selling/shifting as opposed to some moral right to sell.
B) This is exactly why LEGO don't want to discount them 30% (or allow others to). A BF 30% sale means they get bought up all at once by resellers and then sold on (or traded) over the next 6-12 months. Those are lost sales later on. So instead of selling the set at RRP to Johnny X in March, they sell to Reseller Y in November at 30% off, who then makes almost 50% profit (before costs) selling at RRP to Johnny X. That's not good business for LEGO.
If anyone here should be at all upset at LEGO's new discount policy they should know exactly where to look when wanting someone to blame. Its not the managers at LEGO it is, with respect, you and your reselling ilk. That it seems 80% or more of those most vocally complaining are open resellers is startlingly ironic.
Then I stopped to think about it...
Ehh, you might actually have a point...
Grr... I hate it when that happens! :)
For instance the SOH has been avaliable locally for as low as $285 AUD ($258 USD) which means the discount that set would need in the US to make it worth selling here once you include shipping would be a lot more then 30%.
Quite frankly, these days Lego B&M stores are a great place to peruse the aisles to see what sets I want to purchase more reasonably somewhere else.
I used to go on average once a month. Now, I'm down to maybe a couple times a year...
But as others are saying, they definitely don't have an issue getting people into the stores, and a random person, buying something at full price, accumulating VIP points that will likely never be used is their current target.
Brent
The exclusives were slightly different as until this summer (i think) they weren't available anywhere other than LEGO stores and [email protected] and so were rarely/never available on sale. Yet despite this, and with the higher RRPs and that we've been used to regular 30-50% sales LEGO retail are doing well enough to have opened about 6 stores in the last 15 months.
- I hit the Lego store for Black Friday in 2012 and 2011. I did not this year because of the lack of discounts on sets I wanted.
- The lack of discounts on exclusives I find frustrating, but for a very different reason. Outside of Friends, Some of the only sets that have a reasonable number of female minifigs ARE the exclusives. Whenever I 'whined' about the lack of female minifgs in standard lines, and how my girls at 9+ are phasing out of Friends, which is targeted towards younger girls or girls not previously exposed to Lego, I was pointed to the exclusives.
My choices for sets my girls actually want are so minimal, and now one of their main choices they are stuck paying full price for.
No, a free little truck set does not defray cost. A PAB box is nice, but it does not defray cost. A chance to win free sets does nothing, because we never win, and a wimpy key chain again does not defray cost. That leaves the 5% VIP, which helps me over time If I buy exclusively through them, but does next to nothing for them if they re buying with their allowance. That leaves a $10 off card, which I though one was not able to use on that purchase.
Of course, when it can find many sets for my son at the crazy prices that were out there, and yet the Exclusive line for my girls really has no discount, I find the entire ordeal very frustrating. I am sure Lego did this to target resellers, and Lego can do what they want, but they did not consider that the Exclusive line is one of the main options for older girls.
I don't think it's a secret that this whole thing was primarliy designed to shoot down resellers, because to Lego, it's all about them getting "today's money" as opposed to that same money going to a reseller selling a set from 3 years ago. That said, I'm in the same boat with the others as started by @Farmer_John. I have such little interest to either go to a B&M store or [email protected] My spending is so so so down from years past to Lego direct. Yes, some of that spending would be reseller spending, but many of that was complimented by personal spending too.
As for the "deals" on pre-BF (which were better than actual BF, boggle that), 3x points plus a little set equates to about $35, but that's is:
a) locking up money to only be spent at Lego later, something that doesn't appeal to me because what once was assured (buying things at Lego), no longer is
and b) assuming you sell the little truck set or actually would have spent $15-20 for it yourself. The former is a waste of time and I won't spend money for the latter (but I will trade for the truck :)
Anyway, bottom line is what others have said. I don't spend at Lego direct anymore, and haven't bought any item over $100 since BF 2012. In fact, the only reason I did buy from Lego recently was to get the LOTR Barrel Escape exclusive, and that's only because I had a little VIP to burn. The real joke is that I would have been better off letting the VIP points sit idle and taking advantage of TRU's recent sales. I would have had more money left in my pocket as a result.
At least City has a female trash woman and thief. Girl power!
Sorry, sarcastic tangent, back to discounts.
So...short-term = good; long-term = bad, right?
It's something a lot of companies get wrong, but it's possible Lego is already getting it right. Without seeing their figures though we can't really know though I wouldn't dismiss the possibility either way.
I sold each and every Xmas set #1 over the last week for $45 each. That plus the triple VIP put me at price points (after net of $36 for Xmas sets), for example, of $66 for the VW Camper (45% off), $92 for Palace Cinema (40% off), and $166 for Ewok Village (34% off - with xtra clone trooper).
The discounts have still been there this year, you just have to work harder manufacturing them for yourself.
To sell those little sets, there's the marketing (photo, cropping, listing), administration, packing and shipping of the sale, which all takes time and some money. And again, the VIP points are locked into Lego and Lego alone. Given that I don't shop there much anymore, the actual value of those points is far less than cash remaining in my pocket.
I'm not saying the discounts are insignificant, I'm just saying that there's a lot of work to do and red tape to traverse to realize them. It's something I'm not willing to do because a) time is a very valuable commodity to me and b) I don't hold nearly the stock/faith in VIP points like I once did. It seems to have worked out for you though, so more power to you.
Othrerwise I agree for resellers who stick with it and work the deals they'll be in a stronger place with much less competition. For reselling for the masses it will be a bad thing, which for both of us is a good thing!
Brent
That would be a day one purchase for me, my daughter would be over the moon with a clam-shell opening Friend's house.
I might as well tell her she won the lotto. Same effect. Yea, if you're not a reseller, those are less interesting. I always looked at the "free" Christmas sets as about a $20 discount, because I always sell them.
If you don't sell, they probably lose a lot of their appeal. PAB is the same way, great for large amounts of cheap parts, and I've sold dozens of them, so again, money in my pocket, but otherwise, meh... Translation, the offers were crap this year. :) I said 6 months ago that there would be unintended side effects to the targeting of resellers, and this is one of them.
Frankly, they haven't really put much of a dent in resellers. Maybe a bit on the exclusives, but for standard sets? Nothing, not a bit, zero effect.
If anything, they cause Amazon/Target/Walmart to go all out discounting EVERYTHING ELSE this year... I still am amazed at Jabba's Sail Barge for 47% off on Cyber Monday at Amazon, that is just insane for a 6 month old Star Wars set that is not fringe, but main line popular.
Also, they do go on clearance after Christmas. In 2011, I got about a dozen of each for $4.98.
It's come down a few dollars from a couple days ago...