LEGO S@H "Black Listing": Did you ever receive this re-sale warning from Shop at Home?

[Diabolos80]

Guess i should have said $30 w/ bogo. My bad.

[TheDarkness]

I think he meant the $40 msrp before the deal kicked in, so down to $30...
Hopefully the 6 sets I ordered from the same slip up actually arrive. I have 11 now, but am constantly flipping them and trying to get more.

[stephen_rockefeller]

Guess i should have said $30 w/ bogo. My bad.

Guess i should have said $30 w/ bogo. My bad.

makes more sense now......wish I could have gotten mine at that price.

[chopstick]

I wonder if having multiples of certain sets will get TLC's attention.  There are some instances where they encourage you to buy multiples such as the Black Gate and maybe Uruk-Hai Army from LOTR.  Do you think LEGO would care if you get large quantities of battle packs? Some of the images of collectors clone trooper armies are crazy.  Do you think cumulatively buying 50 Fun Houses sets might get the same attention as cumulatively buying 50 Uruk-Hai Army or any battle pack?

[jaisonline]

Funny how you were encouraged to contact their Independent Toy Dealers department although most would do better buying from their non-Independent Toy Dealers. Mom and pop toy stores need to charge MSRP or higher to survive (due to TLG's buying requirements. Stronger themes support the weaker ones). Then they are stuck with garbage on the shelves before discounting even at a loss.

I just received this warning email from Shop at Home.  I guess they don't like my business of 50x DC Funhouse and the like.  Should I be worried and/or change any buying habits/practices?  If banned does a new credit card do the trick?  How do they know that my kids don't have a ton of friends and the Funhouse is our go to standard birthday gift?  LOL

 

copy/paste from email below:

 

 

Hello,

 

In an  effort to reinforce existing LEGO policies, I am sending this message to you.

 

The LEGO Shop sells and ships products to end-user consumers only. You may not purchase LEGO products for resale via the shop.LEGO.com site or LEGO Brand Retail Stores.

We reserve the right to cancel or suspend your order for further investigation if we suspect it is being used for resale.

 

If you represent a retail business and are interested in purchasing LEGO products for resale, please contact our Independent Toy Dealers department to discuss our reseller requirements by calling 1-800-673-0360, or email [email protected].

[LowestFormOfWit]

This is a great thread.

My two cents:

I don't think it is wrong for LEGO to do this with their product. They are trying to protect their brand and their profitability. They don't care about you or me until we become a threat to that profitability. This is a good thing. I want LEGO to stick around, and so do you.

That said, I believe that the high buying limits are specifically so LEGO can catch resellers. Don't think that just because you buy within limits that it means you can't be flagged for suspicious buying patterns. I am with Diablos here. A tighter grip on mass purchases means it's easier for all of us to make money and not get edged out by the select group with huge working capital.

I personally won't ever see anything like this. I never shop from LEGO directly. I'll take my giant discounts and occasional quizzical looks at Walmart while I am practically robbing them with a smile.

[willy431]

I am sure the deals are better than what some here are saying for a real independent reseller. There is a large restaurant near me that has lego for sale in their gift shop. Bought a couple lotr army's for $22 bucks each. They only had a few themes and not all the sets. The small gift shop at our local zoo has lego as well...just a few themes and not all sets. Both of these locations hand out lego club magazines with purchase as well.

[stephen_rockefeller]

I think it should be noted that there is a huge difference between a reseller and an investor. I agree LEGO is looking to protect their profits from resellers. Investors however have no negative effects on their profits whatsoever.

[Deez_Brickz]

If anyone who wanted them could buy 50 of anything, I'd find something else to resell. If you think buying limits are a bust on your market, you might have a blemished understanding of supply and demand. Not to say the market won't sustain the supply; obviously the demand for Lego is high. But do you really want 200 sellers with 50 funhouses each all trying to move them on ebay? As big as it is, Lego reselling is a niche market, and buying limits (and bans) help to spread the field, which makes it easier for 500 of us to make $50 instead of of 50 of us making $500. Make sense? To the point, I like when you big dogs get flagged because I'm small-time. And any sane big dog would also cheer a rival dog getting clipped. Not trying to rub your nose in it (heh), but it's fair.

Another reason limits are good for our market is even better: Limits limit the amount of product Lego produces. 50 fewer sets you buy is 50 fewer sets Lego makes is 50 fewer sets. Think your funhouse will be worth a 100% ROI in two years if investors extended the production run 50 sets at a time? What if every 50 sets Lego sold to another investor resulted in a 2% loss on your ROI? What if 20 investors bought 50 sets each? Say goodbye to 40% of your ROI. (Please don't analyze the exact numbers, you're focusing on the wrong part of the story.)

And consider that maybe Lego just doesn't want you telling kids and parents that a $40 set from the Lego shop is worth $60 from you. Especially if they only plan on making 100 of them and you want half.

Finally, Deez. Why were you buying 50 funhouses at full retail in the first place? The third rule of BrickPicker is: Never pay full retail

-1 for the third rule. It is flawed. And tell me if I buy 2 funhouses at lego price and get VIP points and a free hulk fig- did I really pay full retail?

-1 to the attitude about being happy to see a 'big dog' flagged (your words). Seriously, jealous much? I wouldn't even call myself big time. Why would this community be happy about that? Doesn't everyone here aspire to be a 'big dog?' If not then why are you here. Just invest in stock market.

Like I have said - I have purchased 50 funhouses over time that they have been available, mostly when a good promo is available like hulk or zombie car or jor-el. Never all at once.

So, to everyone else who is buying from shop at home and making money (as I am) b careful with how much you buy of which set and when. Thankfully I live in a state with 2 lego stores.

This has been another discussion which would have gone better if we had a paid member section of the forums. Something I hope the Mack's consider. I would be happy to contribute directly to the site to improve the discussion of serious investor topics.

[willy431]

I agree....we really need a paid preferred forum for larger investors to share information and deals. Some of us already do this with pm and text message alerts for great deals.

[Alcarin]

I think it should be noted that there is a huge difference between a reseller and an investor. I agree LEGO is looking to protect their profits from resellers. Investors however have no negative effects on their profits whatsoever.

 

Investor is eventually a reseller ... how I see it. If you do not sell your investment you are not investing, ok sure you are technically... but thats useless if you invest for the sake of investing itself and not selling.

 

 

 

I would be happy to contribute directly to the site to improve the discussion of serious investor topics.

 

Whats the definition of a SERIOUS investor ??? 

 

I always thought a serious investor is the one who does investing for living... if you have a job that does not relate in investing then you are far from that. And noone just buying and selling lego (or investing) is a serious investor.

 

Unless you meant we cannot smile while investing and be serious.

[StarCityBrickCompany]

This has been another discussion which would have gone better if we had a paid member section of the forums. Something I hope the Mack's consider. I would be happy to contribute directly to the site to improve the discussion of serious investor topics.

 

I have inquired to something along those lines - let's just say, I won't be doing it again.

[Ed Mack]

I think its good...

 

If i were LEGO I would enforce everyone who buys LEGO must have a CARD to register their buyings and limit to 2-3 of each set country wide

Sounds very Socialistic of you.  Let's develop LEGO "welfare," so that the less fortunate can have every LEGO set.  

[willy431]

Everyone has their own definition of a serious investor. Someone scraping together 30 bucks in birthday money to "invest" in a second landspeeder might not need to clog up a thread where others are discussing ways around lego store buying limits, and ways to buy more than 3 haunted houses and arkhams at a time from amzn and target.

And yes...there is a big difference from investors to resellers. I bet they embrace investors...but how can they tell? I've bought 50 Halloween accessory sets this year...how do they know I plan to hold them for a few years? They don't

[Alcarin]

Sounds very Socialistic of you.  Let's develop LEGO "welfare," so that the less fortunate can have every LEGO set.  

 

Perhaps, but quite honestly I dont care for it to happen, I just think it would be a good move...

 

LEGO current limits are useless considering you can buy 100 of each set all over the web... unless LEGO starts making more exclusives to their shop and limit them to 2-3 per customer for alltime... not buying 5 sets then making another order in 3 weeks for another 5...

 

 

 

I dont know about you but i know id be pretty disappointed if someone would pick 100 x YYYY set just infront of me on clearance just to watch him listing these sets for 100% mark up the same evening

 

I know thats what we do but i still think some ''healthy'' limit should be used.

 

its just my opinion though. But capitalism wokrs differently so unless LEGO starts to only sell through their shops (online and stores) and makes such limits per person of all time all their work is pretty much futile atm.

[Alcarin]

 

And yes...there is a big difference from investors to resellers. I bet they embrace investors...but how can they tell?

 

I see both selling their sets eventually... the time frame is irrelevant... only the end matters.

 

So yeh I fail to see the big difference... if you think selling sets after ''retirement'' vs selling sets when LEGO still sells them is  that big difference then I do not agree .... 

 

Afterall the motive is no different from reseller to investor, both are here to make profit.

[spener90]

If anyone who wanted them could buy 50 of anything, I'd find something else to resell. If you think buying limits are a bust on your market, you might have a blemished understanding of supply and demand. Not to say the market won't sustain the supply; obviously the demand for Lego is high. But do you really want 200 sellers with 50 funhouses each all trying to move them on ebay? As big as it is, Lego reselling is a niche market, and buying limits (and bans) help to spread the field, which makes it easier for 500 of us to make $50 instead of of 50 of us making $500. Make sense? To the point, I like when you big dogs get flagged because I'm small-time. And any sane big dog would also cheer a rival dog getting clipped. Not trying to rub your nose in it (heh), but it's fair.

Another reason limits are good for our market is even better: Limits limit the amount of product Lego produces. 50 fewer sets you buy is 50 fewer sets Lego makes is 50 fewer sets. Think your funhouse will be worth a 100% ROI in two years if investors extended the production run 50 sets at a time? What if every 50 sets Lego sold to another investor resulted in a 2% loss on your ROI? What if 20 investors bought 50 sets each? Say goodbye to 40% of your ROI. (Please don't analyze the exact numbers, you're focusing on the wrong part of the story.)

And consider that maybe Lego just doesn't want you telling kids and parents that a $40 set from the Lego shop is worth $60 from you. Especially if they only plan on making 100 of them and you want half.

Finally, Deez. Why were you buying 50 funhouses at full retail in the first place? The third rule of BrickPicker is: Never pay full retail

Perfectly put.  In many ways these limits are protecting us from ourselves.  Although, there have been a few sets I paid full retail for, it's only been when I know when they are retiring (Orc Forge).

[justafrog]

I dont know about you but i know id be pretty disappointed if someone would pick 100 x YYYY set just infront of me on clearance just to watch him listing these sets for 100% mark up the same evening

 

 

There's nobody sane who WOULDN'T be disappointed, but that's the way the game is played. I have been buying and re-selling for a living and/or a healthy part of a living for almost 16 years, and part of the job is learning to deal with disappointment if I don't get there first and fastest.

 

I have some inconvenient scruples (I won't knock down little old ladies or frighten children) but overall I do well as a merchant because I'm smart and I'm motivated.

 

I'll win some and be happy and lose some and deal with my disappointment as needed.

[spener90]

Everyone has their own definition of a serious investor. Someone scraping together 30 bucks in birthday money to "invest" in a second landspeeder might not need to clog up a thread where others are discussing ways around lego store buying limits, and ways to buy more than 3 haunted houses and arkhams at a time from amzn and target.

And yes...there is a big difference from investors to resellers. I bet they embrace investors...but how can they tell? I've bought 50 Halloween accessory sets this year...how do they know I plan to hold them for a few years? They don't

There is no difference between investors and resellers.  Neither term has a restricting time frame that if you don't sell it within makes you not one or the other.

 

I don't mind Lego flagging people, maybe it's because I haven't been flagged (maybe I have?), but I find that the better deals are to be found on other sites anyways.

 

I am frustrated that they have made it increasingly difficult to buy sets straight through them, I find this to be a way of favoring Amazon and the other big box retailers. If there is anything that upsets me, this is it...

[justafrog]

I see both selling their sets eventually... the time frame is irrelevant... only the end matters.

 

So yeh I fail to see the big difference... if you think selling sets after ''retirement'' vs selling sets when LEGO still sells them is  that big difference then I do not agree .... 

 

Afterall the motive is no different from reseller to investor, both are here to make profit.

 

And this one I agree with.

 

I don't see much difference either.

 

If my husband has $1000 of play money in his pocket, and he spends $500 on eBay for a set that retired 10 years ago, he's left with $500 to potentially spend at the Lego store.

 

If my husband has $1000 of play money in his pocket, and he spends $500 on eBay for a couple of currently available sets, he's left with $500 to potentially spend at the Lego store.

 

If we call the first an investor and the second a reseller, Lego still doesn't get more money from my husband.

[Ed Mack]

I have inquired to something along those lines - let's just say, I won't be doing it again.

-1 for the third rule. It is flawed. And tell me if I buy 2 funhouses at lego price and get VIP points and a free hulk fig- did I really pay full retail?

-1 to the attitude about being happy to see a 'big dog' flagged (your words). Seriously, jealous much? I wouldn't even call myself big time. Why would this community be happy about that? Doesn't everyone here aspire to be a 'big dog?' If not then why are you here. Just invest in stock market.

Like I have said - I have purchased 50 funhouses over time that they have been available, mostly when a good promo is available like hulk or zombie car or jor-el. Never all at once.

So, to everyone else who is buying from shop at home and making money (as I am) b careful with how much you buy of which set and when. Thankfully I live in a state with 2 lego stores.

This has been another discussion which would have gone better if we had a paid member section of the forums. Something I hope the Mack's consider. I would be happy to contribute directly to the site to improve the discussion of serious investor topics.

This is a discussion that affects every single person who logs onto our site, whether you are just curious about the value of your collection or a hard core reseller.   The vast majority of members are concerned with the value of their LEGO collection.  To restrict  quality discussion among an elite few would not be in the best interest of the site IMO.  StarBrickCity brought this point up previously and while it has some merit, there are more negatives than positives in my view.  

 

This site accepts all sorts of LEGO fans and to make a special section for a select few could upset the rest of the members.  A topic like this needs to be discussed by all members, because it can affect all members.

[Ed Mack]

Perhaps, but quite honestly I dont care for it to happen, I just think it would be a good move...

 

LEGO current limits are useless considering you can buy 100 of each set all over the web... unless LEGO starts making more exclusives to their shop and limit them to 2-3 per customer for alltime... not buying 5 sets then making another order in 3 weeks for another 5...

 

 

 

I dont know about you but i know id be pretty disappointed if someone would pick 100 x YYYY set just infront of me on clearance just to watch him listing these sets for 100% mark up the same evening

 

I know thats what we do but i still think some ''healthy'' limit should be used.

 

its just my opinion though. But capitalism wokrs differently so unless LEGO starts to only sell through their shops (online and stores) and makes such limits per person of all time all their work is pretty much futile atm.

Here is my issue with limits....LEGO does not stand by them.  If a person buys the maximum amount of sets allowed on LEGO S@H and then gets banned or penalized for it, that is a major issue to me.  Why post that you can buy 5 when they only want you to buy one?  How do they know what I am doing with the sets?  Why don't they make it clear on the LEGO S@H site about resellers, instead of hiding it in small print or not at all?  We all know that LEGO does not want to restrict sales, so why all the secretive bans?  Just be open and upfront with people and if people break the rules, ban them.

 

TLG wants to have a cake and eat it too.  For example, the Collectible Minifigures...Why does LEGO want random bags?  Why don't they just mark them?  Because they know they will sell many more to poor saps that want to collect all 16 of a series.  You might have to buy 50 random bags to get a particular minfigure if you are unlucky.  Is that fair?  How about getting fans to suck up Series 10 CMFs for the MR.GOLD?  Point is, they want to restrict buying for some, yet come up with ideas that promote wasteful spending for others.  

[Alcarin]

Here is my issue with limits....LEGO does not stand by them.  If a person buys the maximum amount of sets allowed on LEGO LEGO Shop at Home and then gets banned or penalized for it, that is a major issue to me.  Why post that you can buy 5 when they only want you to buy one?  How do they know what I am doing with the sets?  Why don't they make it clear on the LEGO LEGO Shop at Home site about resellers, instead of hiding it in small print or not at all?  We all know that LEGO does not want to restrict sales, so why all the secretive bans?  Just be open and upfront with people and if people break the rules, ban them.

 

TLG wants to have a cake and eat it too.  For example, the Collectible Minifigures...Why does LEGO want random bags?  Why don't they just mark them?  Because they know they will sell many more to poor saps that want to collect all 16 of a series.  You might have to buy 50 random bags to get a particular minfigure if you are unlucky.  Is that fair?  How about getting fans to suck up Series 10 CMFs for the MR.GOLD?  Point is, they want to restrict buying for some, yet come up with ideas that promote wasteful spending for others.  

 

I fully agree with you about that issue...

 

When I first saw limit on LEGO shop I thought LIMIT 5 really meant that 1 registered user can only purchase 5 sets on LEGO online shop OVERALL and not in 1 order.

 

So you buy 5 Kingdoms chess sets and thats it.... you cannot buy anymore.

 

I was mistaken obviously... so for such reason I see no good use in limits except it takes longer to make more orders and others might get orders done before items go out of stock

[stephen_rockefeller]

I see both selling their sets eventually... the time frame is irrelevant... only the end matters.

So yeh I fail to see the big difference... if you think selling sets after ''retirement'' vs selling sets when LEGO still sells them is that big difference then I do not agree ....

Afterall the motive is no different from reseller to investor, both are here to make profit.

False......times frame does matter to LEGO. If I am selling my sets while they are still available from LEGO then I am their competiton. If I am selling after the set is retired then am I still their competition?? Nope! You are saying investors and resellers are the same because they both sell sets. To be honest I'm confused why TLG even cares about resellers.......they got paid originally regardless of how many times a sets changes hands through a sale. No one is making Lego bricks in their laboratory and then reselling them.

[matt1147]

From an accounting standpoint, (and as far as the IRS is concerned), there actually is a big difference between a reseller and an investor. Doesnt matter if its Lego, real estate, coins, or whatever. Many of us blur those lines the more Lego we purchase.