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Subject: 
Re: bulk pricing with the cost/stud method
Newsgroups: 
lugnet.lego.direct
Date: 
Sat, 29 Apr 2000 21:34:33 GMT
Reply-To: 
(icestorm@inwave.com)saynotospam()
Viewed: 
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D&K Kuehn wrote:

Not sure if this has been discussed here yet.  Just doing some number
crunching.  In trying to figure out how a simple brick is priced, I derived
a price per stud rate, i.e.; a 2x4 brick is 8 studs.  This does not take
into account the possibly more complex process required to mold or remove a
smaller piece such as a 1x1 from a mold, and probably does not take into
account that the 1x1 has more plastic/stud than say a 1x8 because there is
more "wall area" per stud on a 1x1 (each stud has 4 walls vs. each stud
having 2.25 walls).  But I figure it may be a good place to start in
comparing bulk pricing.  Those who sell by the piece can compare this to the
rates they are selling, taking into account that their prices also reflect
the piece's uniqueness or demand for the piece (train doors, pitchforks),
something which may not necessarily be in the price if there is an
"unlimited" volume in preordered bulk (yea, right).

Using the piece count provided by R.Munafo (www.lugnet.com/db/inv/?n=150)
for the 1200  piece blue bucket 3033, which works out to be 4436 studs in
the bucket, and the regular price of $19.99, the price works out to be
$0.0045/stud (4.5 tenths of a cent).  This prices the venerable 2x4 brick at
$0.036 (3.6 cents).  If the sales tax is included, the price jumps to
$0.038.  At the recent Target sale of $16.88/bucket, it is only $0.032
(includes sales tax).  At the Kmart BOGO the price of a bucket is $14.99,
and a 2x4 brick is $0.0285 (includes tax).

Compare those prices with the prices at S@H for the accessory packs
5140-5145 (332 studs) and 5215 (320 studs).  The price per stud of 5140-5145
is $0.0165/stud (1.65 cents), for a 2x4 brick price of $0.132 (13.2 cents).
In green (5215) this is $0.0172/stud for a 2x4 brick price of $0.1376 (13.76
cents).

The only bricks which are in the service pack and not in the bulk bucket are
the 2x10s and the green 1x6.

This means that sorting the bricks by color and packaging separately has
raised the price 347% (or 463% if you are a sale shopper at Kmart).  For the
big builders, you could buy 1000 accessory pack priced 2x4s at $132, or for
the same cost, 3473 blue bucket 2x4s.  (of course, in both examples the
actual cost is more as you are also buying all the other accompanying bricks
which you will have to use or resell)

Now if the 1200 piece bucket or equivalent is discontinued, this doesn't
matter anymore, but in the mean time, if it is simple bricks that you seek
in bulk, the following prices should be a yardstick to compare the prices
when the Lego Direct bulk ordering becomes available realizing that the
bargain shopper can do even better:

            1x1                0.36 cents
            1x2                0.9 cents
            1x3                1.35 cents
            1x4, 2x2        1.52 cents
            1x6, 2x3        2.7 cents
            1x8, 2x4        3.6 cents
            2x6                5.4 cents

Thoughts, comments, constructive criticism?

dave kuehn dkmjqn@juno.com

First, my only criticism: Market.theory might be the most appropriate place
for this. However, if LD proves to be more expensive than Ebay for common
bulk bricks, I'm sure this thread will be resurrected.

I recently put some bulk legos up for auction on ebay, and I computed their
cost on a /stud basis, and made my actual cost the minimum price. However,
color also factors into this. Blue bricks don't seem to get a lot of bids,
but black and green seem to wake up some bidders. It's a valid division that
makes computing the cost/stud somewhat invalid.

Going to the main point of your message... If you're worried that LD will
make bulk bricks more expensive, especially if tubs disappear, I'm worried
about that too. Sorting and putting legos up for auction can be a bit of a
pain, but if my cost/brick is double through LD over what I can get them off
of a shelf for, remaining blue tubs will quickly disappear around here, even
if they aren't on sale.

I shouldn't write, because it might be just wasted energy. We still have to
learn what LD will charge before we can make informed decisions. However,
even if basic bricks are too expensive through LD, I will be right there if
they offer plates, macaroni bricks, minifig accessories, and more hard to
find stuff, even at an inflated price. Call me weak. :)

Mark



Message is in Reply To:
  bulk pricing with the cost/stud method
 
Not sure if this has been discussed here yet. Just doing some number crunching. In trying to figure out how a simple brick is priced, I derived a price per stud rate, i.e.; a 2x4 brick is 8 studs. This does not take into account the possibly more (...) (25 years ago, 29-Apr-00, to lugnet.lego.direct)  

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