Here is the E-mail I got Back From Toys R US on Why They Overcharge On Lego's

[emazers]

Post a reply 20 posts

[stephen_rockefeller]

Instead of whining about how crappy the prices are at TRU, why don't people just boycott them like I did??? Is it really that hard to just not buy from them?? Who gives a crap If they have a decent sale once in a long while??? Not this guy!! It also amazes me that people buy from their ebay store even after looking at their hundreds and hundreds of negative feedbacks.

[IrishGuy66]

I'd like to see them "really" explain why everybody else can sell Legos cheaper and they can't. "Shelf Space" seriously!!! That's a load a crap!!!

[metsrock507]

buying lego from toys r us can be a very frustrating experience. There website claims they offer pricematch for a competitors advertised price, so i drove 25 minutes there to purchase a lego set that walmart advertised for 44$ (toys r us had it listed at $80 its actual retail value was $50) with a printout of walmarts add. once there the manager completely denied the fact toys r us does price match. bottom line dont buy things from toys r us because their dishonest and suck.

[derickb81]

the only bad thing about boycotting toys r us is they tend to have a ser from aline you can only get there

[justgod]

Maybe TRU needs to factor in the "shelf space cost" they incur by having overpriced sets sit there long after they have been discontinued. I went in to one today that I never been to because it was next to the mall with a LEGO store. I think they had at least 6 of every cars set they ever carried. As far as price matching, the HUGE sign on the door stated that they matched all advertiser's printed prices.

[tormentalous]

Instead of whining about how crappy the prices are at TRU, why don't people just boycott them like I did??? Is it really that hard to just not buy from them?? Who gives a crap If they have a decent sale once in a long while??? Not this guy!! It also amazes me that people buy from their ebay store even after looking at their hundreds and hundreds of negative feedbacks.

I've been say this for a while but nobody listens :p

[stephen_rockefeller]

As have I!

[Furbs]

I never buy from TRU, although saying that In the uk most TRU prices are the same as Lego.com

[Tilted]

I think that most consumers make uninformed decisions and, being such a recognizable brand, just walk into TRU when it's time to purchase toys. I was appalled by their price spikes two weeks before Christmas (some of them with a 15%/15 EUR markup from LEGO Shop at Home) and, guess what, not only have they kept them at those levels... but sets keep selling out over and over.

[emes]

Not to stir anything up, but I really don't understand this thread. If you don't like a retailer's practices, then don't buy from them. It's really that simple. As others in this thread have said, "vote with your dollars". It's also fair to make the point that every member here who sells LEGO products on eBay or elsewhere hopes to do exactly what TRU is doing...sell LEGO products at inflated prices. Pot meet kettle.

[stephen_rockefeller]

I totally understand this thread.......I think most people at some point have wondered why TRU marks up most everything in their store. I have never wrote an email however because I know the answer to the question and it is none of the BS that they stated in the response. The reason why they do it is very simple, they are greedy!

[StarCityBrickCompany]

I totally understand this thread.......I think most people at some point have wondered why TRU marks up most everything in their store. I have never wrote an email however because I know the answer to the question and it is none of the BS that they stated in the response. The reason why they do it is very simple, they are greedy!

I know that everything at TRU is on avg 20% too high - but they have to do it. If they only charged what amazon charges & backed out the sales taxes, they would close in about a week.

[stephen_rockefeller]

I know that everything at TRU is on avg 20% too high - but they have to do it. If they only charged what amazon charges & backed out the sales taxes, they would close in about a week.

you could very well be correct but one reason why i am skeptical of this theory is because of the fact that other places don't jack ups their MSRPs and they seem to be doing just fine.

[comicblast]

I know that everything at TRU is on avg 20% too high - but they have to do it. If they only charged what amazon charges & backed out the sales taxes, they would close in about a week.

you could very well be correct but one reason why i am skeptical of this theory is because of the fact that other places don't jack ups their MSRPs and they seem to be doing just fine. Other stores that sell Legos also sell other mechandise like furniture, electronics, health supplies, etc. which is probably why they can keep their prices a bit lower. Since their income does not rely as heavily on Legos, its easier to have low prices and stay in business.

[emes]

you could very well be correct but one reason why i am skeptical of this theory is because of the fact that other places don't jack ups their MSRPs and they seem to be doing just fine.

All retailers and service providers operate in market spaces of their choosing. Sometimes markets spaces overlap and sometimes they do not. TRU charging on average 20% more is simply a statement of what they think customers in their market space will pay. Price rarely truly reflects the cost of the product.

For example, if the MSRP of a set is $39.99, what do you think it cost LEGO to produce that set? Are they greedy because they also markup? I'll state again that everyone here who buys LEGO, holds it, and sells it at a later date for a significant profit is doing exactly the same thing. I didn't feel greedy at all for selling all of that Minecraft nonsense I bought for close to double what I paid...(I held it for no more than 2 weeks, so really, I provided zero value in the transaction).

In about 2 days I will be in Dubai. I'm told that in this market that LEGO prices are outrageous. I'm hoping to find some of the year of the snake sets. If they're anywhere outside of HK it will be Dubai. Even if I have to pay 50% more than retail for them, they can probably earn even more than that in the US market. I have no issue with the markup in this case, as long as I can still make a profit.

IMO, results demonstrate whether or not a business is correct in their approach. If you look at TRUs financial reports, they're doing ok, but their main market in the US seems to be shrinking.

From TRUs financial report in Q1 2012: "Adjusted EBITDA was $119 million, compared to $107 million in the prior year, an increase of 11.2%." EBITDA is a measure of how profitable a company is while canceling out some other factors. That's a reasonable indication that their business model is working, but it would be better to look at a long-term trend

There is also an IPO for stock on TRU. It will happen at some point. Here's the info. http://www.nasdaq.com/markets/ipos/company/toys-r-us-inc-9005-64311

IMO, TRU will continue to exist but they will have less presence in the US market space. There's too many competitors in that space and really they're not selling products that are all that different. They will thrive in the developing world, which has a much higher birth rate than the US, and therefore more of those who drive the demand for their products.

I'm not a huge defender of TRU, I just think it would be nice sometimes for the Internet to operate more on facts than opinion. I only shop at TRU when there's a good sale and I can get something below retail. I think if people want to be critical of TRU a better area would be their shipping practices. They're the worst at this that I've had experience with. Writing a letter to TRU to complain about their prices being different than someone else is like writing a letter to Neiman Marcus telling them that they're more expensive than WalMart...again, different market spaces with different customers who will pay different prices and want different products.

[Anakinisvader]

If I were TRU here would be my response: We sell for more because we can and you sheeple just keep on buying...suckuhs. Sincerely Geoffrey

[emes]

If I were TRU here would be my response: We sell for more because we can and you sheeple just keep on buying...suckuhs.

Sincerely

Geoffrey

LOL

[stephen_rockefeller]

That's hilarious because it's true!!!

[Ed Mack]

It is what it is...Obviously, TRU makes money the way they operate. Although they have had financial difficulties in the past, they are still operating. I don't take this stuff personal like some people do. It's really not my business. I have enough problems just keeping my own business afloat. But when people count other people's money, they usually have no clue. In defense of TRU, I have found my share of deals. I bought 2 Death Stars for $299.99 a piece a year ago on a BOGO deal. I have found other deals as well. You have to pay attention and scan the listings. Where as I buy most of my sets from Amazon, eBay, LEGO and Target, TRU surprises me on occasion with a great deal.

[stephen_rockefeller]

Did you have a hard time getting them with the BOGO sale? Last year they weren't including any star wars sets in any of their promotions.

[Darth Lego]

LOL

Haha.

[Ed Mack]

Did you have a hard time getting them with the BOGO sale? Last year they weren't including any star wars sets in any of their promotions.

No...It might have been two years ago. The 10188s were $399.99 apiece.

[AlgebraicMirror]

Instead of whining about how crappy the prices are at TRU, why don't people just boycott them like I did??? Is it really that hard to just not buy from them?? Who gives a crap If they have a decent sale once in a long while??? Not this guy!! It also amazes me that people buy from their ebay store even after looking at their hundreds and hundreds of negative feedbacks.

I admit, they are generally a bad deal, but I wouldn't go so far as to blanket boycott them. They occasionally do have a good sale on Legos, and they offer a Toys R Us credit card that saves you 10%, so combining the two it may be possible to occasionally get a good deal out of them. Plus, you can sometimes find discontinued sets there after most other places have sold out, and get them at less than the eBay price.

So they occasionally may be useful, but I agree with you that 98% of the time they are a huge ripoff compared to Walmart, Target or Amazon, so I don't watch them too closely.

[CNH1974]

hehe I read this with some amusement yesterday. People enjoy venting I think I agree and disagree with everyone. Let's summarize: TRU's prices obviously are not too high because large numbers of people are still buying from them. So their business model must be sound - this is the 'there is one born every minute' model. Don't boycott them because you will do yourself an injustice when they actually have a deal on. Do boycott their online service because they like the jump on the packages before sending them. People are idiots for buying from them; the same people will be savvy shoppers in 5 years time when they "hopefully" pay us high prices when we sell our collections. Think that about covers it :)