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Subject: 
LEGO Factory / PaB Pricing Study
Newsgroups: 
lugnet.lego, lugnet.trains, lugnet.cad.ldd, lugnet.lego.direct
Followup-To: 
lugnet.lego
Date: 
Mon, 6 Apr 2009 14:18:38 GMT
Highlighted: 
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You’ve probably noticed that the LEGO online Pick-A-Brick / LEGO Factory palette has recently been updated with new parts - and new prices. As an avid user of the LEGO Factory system, I was curious just how much the prices had gone up by. I created three train models in order to evaluate the new prices - a caboose in 6-wide, the same caboose as an 8-wide model, and an AAR-style wheelset using some new wheels that were recently added to the Palette.



I’ve designed numerous LEGO Factory models over the years and have a feel for what these models should cost based on previous pricing. In my experience, models typically average about 15 cents per part. A 6-wide railcar typically runs less than $70. My 6-wide caboose uses the train baseplate and minimal SNOT, so it should cost about $50 or less. At 329 elements, my 15c/part estimate gives $49.35 - almost in exact agreement. The 8-wide version is SNOTtier and has 601 pieces, so $90 is a good estimate. The AAR truck has only 43 pieces, but it uses an expensive magnetic buffer piece. To estimate the price, take the 15c/part estimate of $6.45 and add on the (former) cost for the buffer of $1.54. This brings the estimated cost to $7.99.

So, how did these estimates check with the new (USA) LEGO Factory prices? The results aren’t encouraging. Let’s start with the AAR truck... this little 43-part gem is now a whopping $21.57 - 270% more than the estimate using the previous Factory pricing. At this price, it would cost you over $40 just to supply the wheels for a railcar using two of these AAR trucks.

8-wide railcars are always expensive. Just before the price increase, I ordered an 8-wide, 1086-element locomotive, sans 9V motors and wheels, from LEGO Factory for a cost of $107. This caboose has 601 elements, so we would expect the cost to be less, given the same pricing. However, the pricing is not the same anymore... and this caboose now costs $201.50 - averaging 33.5 cents per brick. That’s more than double the old prices.

The real shocker is the 6-wide caboose, which should have cost about $50 with the old pricing. It comes in at an unbelievable $181.51, or 55 cents per brick! Why so much more for the 6-wide model? The secret is in the wheels. For this model, I used stock train wheelsets. There is a bug (if you can call it that) in LEGO Digital Designer that includes one four-pack of train axles for each wheelset ordered. That means that the caboose model will actually ship with four axle packs, or 16 total. These axles are now priced at $13 per 4-pack, and a wheelset costs $16.10 as a result. Since the model includes four wheelsets, these add more than $64 to the cost of the model. The AAR trucks actually end up being cheaper, even at more than $20 each!

I’m really disappointed by this new pricing. LDD models and online Pick-a-Brick have become unaffordable. If LEGO requires such high prices in order for online PaB to be profitable, then it appears that the time has come for LEGO Factory to close its doors.

As a LEGO Ambassador, I have voiced my concerns through the LEGO Ambassadors’ message board. I also contacted LEGO Customer Service by phone and was told that several customers had voiced the same concerns over Factory pricing. I was told, however, that these prices are set by LEGO in Denmark and that the US Customer Service could not provide me with further information at the time of my call.

LEGO is already aware that there are a number of fans upset over the new prices. However, if you find these new online Pick-a-Brick / LEGO Factory prices objectionable, I still encourage you to make your concerns known so that LEGO can understand the impact of the new prices - which are more than double the old and have made online PaB impossibly expensive. Their toll-free number in the US is +1 (800) 835-4386. I will pass along more information as I receive it.

--

I also posted this story - with pictures of the MOCs - on MOCpages. The link for that is:

http://mocpages.com/moc.php/109368


-- Jordan Schwarz



Message has 6 Replies:
  Re: LEGO Factory / PaB Pricing Study
 
(...) Hi Jordan, Thanks for this information. I noticed it today also after a message from one of the French FreeLUG people about those ridiculous high prices. I found the previous (European) prices already on the high side, but now its as you (...) (16 years ago, 6-Apr-09, to lugnet.lego, FTX)
  Re: LEGO Factory/P.A.B. Pricing Study
 
The 2X2 tiles and 2X3 plates seem to have reasonable prices. Everything else is insane. David (16 years ago, 7-Apr-09, to lugnet.lego, lugnet.lego.direct, lugnet.market.shopping, FTX)
  Re: LEGO Factory / PaB Pricing Study
 
I have also noticed the higher prices from the online Pick-a-Brick. I wonder how often and how thoroughly that the calculations that go into these prices are looked over by management. With such a high volume of parts that the machines that make (...) (16 years ago, 7-Apr-09, to lugnet.lego)
  Re: LEGO Factory / PaB Pricing Study
 
(...) There are a couple elements that I've been meaning to purchase for a few projects. They used to be 11cents, now they're 34cents. Since I'd need to purchase several hundred of each that is a big difference. I guess I won't be starting those (...) (16 years ago, 7-Apr-09, to lugnet.lego, FTX)
  Re: LEGO Factory / PaB Pricing Study
 
(...) -snip- (...) 55 cents a piece? That's what market dominance lets them do: Big Ben's Bricks, BrickArms and Brickforge could never get away with charging that much per piece. Or could they? Richie Dulin CO Legeaux Please consider FUT if replying (16 years ago, 8-Apr-09, to lugnet.lego, lugnet.off-topic.clone-brands, FTX)
  Re: LEGO Factory / PaB Pricing Study
 
In lugnet.lego, Jordan Schwarz wrote: -snip- (...) I believe that this is one of the biggest downfalls in the LEGO(R) Company's organizational structure which is the lack of representation here in the US. Denmark has always had a stronghold over the (...) (16 years ago, 9-Apr-09, to lugnet.lego, FTX)

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