LEGO® is expensive due to high-quality materials, meticulous design, research and development costs, licensing, manufacturing standards, packaging, marketing, and supply-demand dynamics.
Reasons why LEGO® can be very expensive
1. Quality & Complexity
One of the most significant factors when determining the price tag for LEGO® sets is the quality and complexity. Sets are made with precision and care, using durable materials that are designed to withstand wear and tear. Additionally, many of these sets feature intricate designs and complex builds which take longer to assemble.
2. Labor Costs
Not only do LEGO® sets require a high-quality build, but they also come with labor costs associated with the production process. Assembling each set requires skilled professionals who can put together pieces in an efficient manner while still maintaining accuracy. Moreover, the cost of materials and labor adds up over time as more complex builds become increasingly expensive.
3. Production Expenses
From printing instructions to packaging products, there are many production-related expenses associated with manufacturing LEGO® sets. The cost of these processes all adds up and is ultimately included in the final price of each set.
4. Limited Availability
The availability of certain sets is often limited, which can drive the price up due to the high demand. This is especially true for collector’s editions or special promotions that are released periodically throughout the year.
5. Brand Loyalty
LEGO has become a popular brand choice among consumers, with many people opting to purchase sets based on their loyalty to the company. As a result, prices are kept relatively high as customers are willing to pay a premium to support their favorite brand.
6. Cost of Materials
Lastly, LEGO® sets require various materials such as plastic and rubber which can be pricey depending on global markets and fluctuations in supply and demand. These costs are all taken into consideration when pricing LEGO® sets.
7. Marketing & Advertising Costs
The process of creating advertisements and promoting LEGO® sets comes with costs that must be paid by LEGO® or its partners. These expenses are included in the overall price tag when customers purchase a set.
8. Willingness to Pay
As previously mentioned, many consumers are willing to pay more for LEGO® products due to their loyalty and dedication to the brand. This factor can also drive up the cost of sets as customers are willing to pay a premium for certain products.
9. Profit Margin
LEGO® sets are produced and sold by a company, meaning they must also make a profit on each set they sell. The cost of the set needs to cover production expenses and labor costs, as well as any marketing or advertising campaigns associated with it. Additionally, there needs to be room for a reasonable profit margin which will ultimately increase the price tag for customers.
10. Shipping & Handling
As with any product sold online or in stores, customers will need to pay shipping fees in order to receive their purchase. This adds an additional expense that may not be taken into consideration when calculating the overall cost of a LEGO® set.
11. Customs & Tariffs
Depending on where you live, you may need to pay customs or tariffs when importing LEGO® sets from another country. This expense is often overlooked but can add up quickly and contribute to the total cost of a set.
12. Retail Markup
As with any product sold in retail stores, there will be a markup on each item that is added to the price tag. This is done to cover overhead costs associated with running a business such as rent, utilities, and staff wages. All of these expenses are taken into consideration when pricing LEGO® sets for sale.
13. Tax
Sales tax is often applied to the final price of a product, adding an additional expense that customers will need to consider when purchasing LEGO® sets. Depending on your location, this could result in an increase of up to 10% or more added to the base price of each set.