General Investment Strategies with Technic Sets

[Jersey Crewmax]

I tried searching for some general investment strategies with Technic sets so I figured I'd start a thread. Well I know that Technic does not have the following in the U.S. that it does in Europe but judging by the current market values of the Unimog and Excavator it appears that good profits can be made.

My initial thoughts are to pick up a few 42009 MKII cranes and service trucks through TRUTH as they are more likely to retire end of year.

[gregpj]

I love the Technic sets but I find investing in them pretty hard. I have three main hang ups that keep me from investing more:

1) The potential market is undeniably smaller.
2) I don't believe the big technic builders are not the ones buying sets at secondary market prices - they likely buy bulk parts from BL or buy multiple sets on sale to bulk up their collection of pieces (i.e. I believe they are savvier shoppers in that sense).
3) LEGO has a habit of remaking them in similar ways and often with the new version being far superior.

What all that means is picking sets is harder but not impossible. Marquee sets like the Volvo Loader will be valuable - it'll likely never be remade that way again and it has an assortment of new an unique parts. Sets like the 9398 Crawler will do OK long term (especially at the discounts they were purchased with) but it received so many recommendations for improvements that I think it will hurt it's long term "review" potential.... So that brings me to the MKII. It is so far superior to the older crane models, so well built and so unlikely to be bested in the near future that I think despite it being hoarded that it'll do great.

I also buy a few smaller unique sets (I'll probably grab a few of the mini tracked loaders) but not too many as I believe the market is even smaller for those.

Mid-sized construction sets though... yeah, those are always going to be sought after. That new bulldozer is a great build and the previous motorized one is so expensive and rare that it has tons of room.

Thoughts from a guy who doesn't care about LEGO investing.
 

Edited October 26, 2015 by gregpj
corrected crawler set #... star wars on the brain?

[Val-E]

I tried searching for some general investment strategies with Technic sets so I figured I'd start a thread. Well I know that Technic does not have the following in the U.S. that it does in Europe but judging by the current market values of the Unimog and Excavator it appears that good profits can be made.

 

My initial thoughts are to pick up a few 42009 MKII cranes and service trucks through TRUTH as they are more likely to retire end of year.

In addition to what Greg says I´d add:

 

1) Buy in price is key. NEVER EVER pay full RRP and 25% off is an absolute minimum - 40% off on smaller sets for risk aversion.

2) If you are in the US, always try to snag sets that came out later than in Europe e.g. 42025, as these have rarity value because they will retire at the same time as in the EU.

3) Large construction equipment is the strongest performing sub sector but motorbikes do well too. Aircraft and sub 30 USD RRP sets should be avoided except for the above caveat.

4) Examine supply and demand before buying anything - what is the purchase v sales ratio on Ebay? If there are already loads of sets stagnating e.g. Unimog, better avoid.

[redcell]

In addition to what Greg says I´d add:

 

1) Buy in price is key. NEVER EVER pay full RRP and 25% off is an absolute minimum - 40% off on smaller sets for risk aversion.

It's always good to buy at a discount, but there are sets where buying at MSRP is fine. For example, 42006 was rarely discounted pre-EOL in the US, but had already doubled and will continue to climb. The key, as always, is picking the right sets.

[Val-E]

If your buy in is low you can still part out any sets that tank. Unimog parted out is worth more than MISB, for example.

[gregpj]

 

It's always good to buy at a discount, but there are sets where buying at MSRP is fine. For example, 42006 was rarely discounted pre-EOL in the US, but had already doubled and will continue to climb. The key, as always, is picking the right sets.

 

This is one area where TRU Canada had been pretty good. 42006 was available with 20% discounts quite frequently, even twice after it disappeared in the US. Their Technic sales (i.e.lack thereof) have stunk lately.

[freakchem]

I live in US. I got a couple of 42000 Grand Prix Racer slightly above MSRP ($144) and found they are moving really slow on Amazon. 

This set itself stands out but maybe too much hoarded in Europe? 

[Seal Cutter]

I think Technic buyers are just generally more savvy. They are less likely to want to pay 2x MRSP for a set, when it's probably mostly yellow and black beams they already have. Buy a massive black scoop and some green engine parts and you've made the Volvo loader from your own parts.

[lego rules]

For the few sets I do have invested in, I got them from Amazon.co.uk  The exchange rate is not too great right now, but there are excellent discounts there and shipping is surprisingly low.

[Jersey Crewmax]

Glad I started this thread, learning some stuff from everyone. Should I add a general recommendations listings to the beginning? Something like: Amazon UK and TRUTH are good places for discounted pricing. Odd/different color pieces are more desirable, colors like yellow and black are fairly common.

Edit- Looks like I can't edit my initial post, likely would need to be done by mods.

[gregpj]

   Edit- Looks like I can't edit my initial post, likely would need to be done by mods.

Yup .. You have 15 minutes or so to edit a post, after that you need the magic mod dust to edit them.

Let's see if this thread gets too long, we can easily make some edits to the first post if it becomes too much.

I should add that up to now, sets with Power Functions have been very good deals price wise. I know people hated on the 41999 for various reseller reasons, but for the same price as the 9398 model, it had more unique parts/colors, a second power function motor ($7.50) and a switch ($5.80). Now, when you look at regular PF parts 9398 and 41999 both came with approx $80 (retail) of them. 9398 could easily have been a $149.99 US set without them which means there is around $30 difference... That's value for shoppers looking to expand their collection. So recommendation is sets with PF are just that much better.

The Pneumatic 2.0 system in the new Aroc set could be a game changer if it turns out to be better for Technic MOCers as it'll drive up the price of those sets and cause the depression in the old PF model pricing. I say that not because the PFs are going anywhere (you can't drive a vehicle with pneumatics) but it's because there is only so much $$ to go around.

Edited October 26, 2015 by gregpj

[Guest]

 

The Pneumatic 2.0 system in the new Aroc set could be a game changer if it turns out to be better for Technic MOCers as it'll drive up the price of those sets and cause the depression in the old PF model pricing. I say that not because the PFs are going anywhere (you can't drive a vehicle with pneumatics) but it's because there is only so much $$ to go around.

What does that mean for 42008?

[Val-E]

My Arocs just arrived so I´ll let you know if it is an improvement.

I would say that the Technic market is not big enough for too many resellers - we have seen it with 41999 and 8110 and probably will with 42009 as the buying market cannot absorb so many sets.

BLing sets depends on your resources and how snobbish you are - a lot of people like me buy all the flagships even  if I rep4at parts.

[Darth_Raichu]

The only thing you need to know on Technic sets:

If you think the growth of GE is too slow for you, then Technic sets are definitely not for you.

[Guest]

Retired Technic sets are some of my most consistent sellers all year long and help me get through the lean months. I stick to mostly the mid size construction sets.

Edited October 26, 2015 by MarxMarvelous

[suns]

Can anyone recommend a good large set to buy? When I was young, the technic tractor / truck set was my favourite and I still have fond memories of it... well, actually, I dug it out and built the truck only 3 weeks ago!

I've been buying several sets (mainly modulars etc.) to sell in the future, but this one would be (a) to build and then (b) possibly to sell as used so looking primarily for something which is an interesting build first and foremost followed by something which has enough unusual and interesting parts that it would have a reasonable value on the secondary market. 

[Jersey Crewmax]

The only thing you need to know on Technic sets:

If you think the growth of GE is too slow for you, then Technic sets are definitely not for you.

My thought however is that while growth is slow and may even plateau earlier, there is something to be said about their more consistent retirement schedule. Currently I see profit (albeit it small) can be made from the TRUTH buy in / eBay market value differential. But I guess the same could be said for other Lego sets.

[Jersey Crewmax]

Can anyone recommend a good large set to buy? When I was young, the technic tractor / truck set was my favourite and I still have fond memories of it... well, actually, I dug it out and built the truck only 3 weeks ago!

I've been buying several sets (mainly modulars etc.) to sell in the future, but this one would be (a) to build and then ( possibly to sell as used so looking primarily for something which is an interesting build first and foremost followed by something which has enough unusual and interesting parts that it would have a reasonable value on the secondary market. 

The MKII crane (42009) was a great build and can be found at good prices. The Mercedes AROCS (42043) is also arrest build and looks great. If you want an older less expensive set, I just finished the logging truck and I really like the finished product although it has roughly half the pieces of the other 2 I mentioned.

[suns]

Thanks Jersey Crewmax - both those sets look pretty good - think I may hold out for a potential discount for black friday. I seem to remember that the AROCS was discounted previously - should've gone for it then.

What the consensus on Remote-Controlled VOLVO L350F Wheel Loader (42030)? I'm drawn to that primarily because of the many motors and remote control but has anyone had hands on experience of the build? Downside I can see is it's all yellow and black bricks.

[Ciglione]

I have invested in several Technic sets. And I am not really impressed investment wise. They are very slow sellers. Even if you bought them cheap and sell them cheap. Eventhough in Europe there is quite a following. But most Technic fans are 30+ years old and already bought the sets they want.

This convinced me to do not invest in Technic anymore. 

 

[Val-E]

Thanks Jersey Crewmax - both those sets look pretty good - think I may hold out for a potential discount for black friday. I seem to remember that the AROCS was discounted previously - should've gone for it then.

What the consensus on Remote-Controlled VOLVO L350F Wheel Loader (42030)? I'm drawn to that primarily because of the many motors and remote control but has anyone had hands on experience of the build? Downside I can see is it's all yellow and black bricks.

Avg build but some good parts for MOCing and the PF´s come in handy too. Really the crane is the one that will disappear first so for the others there is time.

 

Another tip for investing is avoid the sets that are stocked in large supermarkets and non specialist toy shops as these always stay on the shelves for ages - e.g. 42000, 42029.

[Jersey Crewmax]

Thanks Jersey Crewmax - both those sets look pretty good - think I may hold out for a potential discount for black friday. I seem to remember that the AROCS was discounted previously - should've gone for it then.

What the consensus on Remote-Controlled VOLVO L350F Wheel Loader (42030)? I'm drawn to that primarily because of the many motors and remote control but has anyone had hands on experience of the build? Downside I can see is it's all yellow and black bricks.

Regarding the loader, I picked one up during the last Technic special on Amazon (UK). I haven't opened it yet but my observations are:

1) Box is lite in comparison to AROCS

2) For the price, piece count is low. But likely due to all the power functions and licensing.

3) I saw the build video online and it looks like it was a very quick build while I prefer longer builds.

4) It constantly sells fur over $230 on eBay so could be a good flip if it can be picked up under $170

Also one more thing to note about investing in Technic, I believe it's an easier sell locally due to the lack of variety of current sets and people not being as knowledgable about buying with TRUTH. Just a thought.

[suns]

What a great bunch of people you are - genuinely glad of your advice. Many thanks.

[gregpj]

What does that mean for 42008?

It's a neat set, but I don't own one for personal or investment. I don't believe it will do well long term compared to the others as it has limited appeal and too many stickers. Too many stickers on Technic sets is one of the flags for me - MOCers don't use stickers and neither should the builds. At a good discount, it'll be OK though... It's a set that is unlikely to be remade unlike things like the cranes and other construction equipment.

41999 is an exception .. the stickers are great.

[Val-E]

It's a neat set, but I don't own one for personal or investment. I don't believe it will do well long term compared to the others as it has limited appeal and too many stickers. Too many stickers on Technic sets is one of the flags for me - MOCers don't use stickers and neither should the builds. At a good discount, it'll be OK though... It's a set that is unlikely to be remade unlike things like the cranes and other construction equipment.

41999 is an exception .. the stickers are great.

I disagree about it being remade - service trucks are common choices so expect another within a few years - maybe on a different scale or with a flatbed like 8109.

This set is not highly regarded due the poor design and integration of its pneumatic and linear actuator parts and the choice of colour. It has also had a 2.5 year shelf life which is bad news. I have one got for 75 euros (rrp 115) and no more.