The Promotional "Discount": A Valuable Resource

I think we all know that purchasing sets directly from LEGO S@H or actual LEGO stores is usually not the best choice when it comes to LEGO investing. It is a somewhat rare event when LEGO really discounts a set or a group of sets enough to make it worthwhile when taking into consideration that sites like Amazon, Walmart and even Toys R Us constantly run promotions that put sets well below 20%, the typical maximum discount offered by LEGO (with some exceptions). There is, however, one thing investors need to take into consideration: LEGO promotional items.

You have seen them in different shapes and form: Han Solo Hoth, TC-14, Hot Dog Cart, Friends Ice Cream stand and many others. LEGO is fond of offering exclusive polybags and minifigures in an effort to provide an incentive for people to purchase in their stores while avoiding having to discount their own merchandise. Most often than not, the products offered in this manner are completely exclusive and impossible to get other than on the specific period they were offered, and may require a specific amount per order to get them.

The value of this promotional items varies a lot, but I think it is safe to say that the majority hover between $ 13 to $ 20 in the secondary market. Some may go for much more as soon as they are released, while some may grow in value over time just as any other LEGO set. What I wanted to point out, even if it is obvious, in this article is that this promotional items can be a very valuable resource for LEGO investors looking to buy items in the LEGO store or S@H, especially those products that are exclusive like the Orc Forge, Orthanc, etc.

The periods when this promotional items are offered can be a way for investors to acquire "discounted" sets that would otherwise have to be purchased at retail. Let's take the soon to be retired and much talked about Orc Forge as an example of what I mean.
MSRP: $ 39.99
Target Exclusive

This is one particular set that very rarely saw a discount of any kind over its MSRP. Being a Target exclusive pretty much guaranteed that the demand for this set was high enough for it to sell pretty well at retail, as well as over it on secondary market outlets like eBay and Bricklink. So, was it impossible to get this item discounted? Of course not. If you remember, Target had a pretty decent sale a few months ago where they discounted, if I remember correctly, 20% of your $100 order. Let's examine an scenario where an investor purchase 3 of them during that sale: (taxes are omitted for simplicity purposes)

So you end up purchasing each set for around $ 32. Now, let's say the same investor was short of money and had to wait a complete month to reset his/her investment budget. This investor thinks the Orc Forge will be a huge hit, and would love to own at least 3 more sets before they retire, well, bad news, Target has the set back to full retail and no sale to take advantage of. The investor decides to go to the local LEGO store and at least get some VIP points in the process. Surprisingly, the current promotion offers a Jor-El exclusive minifig on $75+ orders. Our friend decides to purchase only 2 more sets, and this is how things turn out:

In this scenario, his average price per set is once again around $ 32. The investor was able to purchase less sets for basically the same amount once he decided to sell his Jor-El promo minifig on eBay or Bricklink for $ 15. Had he purchase three as originally planned, the average price paid at the LEGO store would have been over $ 32, but considering the set is rarely discounted, even $5 below MSRP is a pretty good deal.

Selling these promotional items as soon as possible will guarantee you better profits than waiting a couple days. While the initial scarcity level in the market will push the price of your item higher, in a couple of days the flood of these will push it back down. If this is the case, then holding onto it for a few months can also be a choice you would want to consider.

I know the content of this article may seem very basic and obvious to the big majority of you in this page, but I do hope that some of the new members and overall new to the LEGO investing world members consider the value of the promotional items LEGO often offers every month. They can really help get that exclusive set the "discount" you would rarely see somewhere else.

Thanks for reading.