Pick-a-Brick Prices Going Up

[inversion]

Lego is just utilizing its monopoly power. Obviously, increasing price leads to less customers. But it doesn't mean LEGO is not better off with it. The less substitutable/ more differentiated its prouducts are, the more it can do this. This means something: LEGO can stand out in a heavily competitive market full of competitors. It can be attributed to its quality, otherwise its market power would diminish like in the late 90's when the company was following a bad strategy. 

 

So lets look at it in another way: this is a sign that LEGO can maintain quality. While I am not happy at all seeing "overpriced" (lol, there is no such thing in economics: demand dictates prices, unless the seller is retarded) sets, I rather buy expensive and solid things than trash. And I think this can be said for nearly everybody on this site. 

 

The only stick in my eye is the sticker mania. Come on, LEGO, please do a "no stickers in exclusives" policy. You know, quality...

[Pseudoty]

Sure thing. Further they had 'advertising' around certain wall buckets that said things like NEW or Goes Great with CITY or SPACE.

 

Very cool stuff. Cockpit windows, propellers and blades, lots of stuff i've never seen before.

 

+1  I was at my Lego store last Sunday and they had better elements to choose from.  I do not sell on Bricklink but if you do I would think you would easily recoup the $1 and more.  They had many printed elements and the wheels for the Mars rover, hopefully it is EOL so they are clearing them out.

[Alpinemaps]

Lego is just utilizing its monopoly power. Obviously, increasing price leads to less customers. But it doesn't mean LEGO is not better off with it. The less substitutable/ more differentiated its prouducts are, the more it can do this. This means something: LEGO can stand out in a heavily competitive market full of competitors. It can be attributed to its quality, otherwise its market power would diminish like in the late 90's when the company was following a bad strategy.

So lets look at it in another way: this is a sign that LEGO can maintain quality. While I am not happy at all seeing "overpriced" (lol, there is no such thing in economics: demand dictates prices, unless the seller is retarded) sets, I rather buy expensive and solid things than trash. And I think this can be said for nearly everybody on this site.

The only stick in my eye is the sticker mania. Come on, LEGO, please do a "no stickers in exclusives" policy. You know, quality...

The only qualm I have with your saying is your statement saying "monopoly power" and then saying that Lego has competition. You can't have both.

Lego does have competition. It's not a monopoly. However, it is a superior product, which is why it can do what you say.

[inversion]

The only qualm I have with your saying is your statement saying "monopoly power" and then saying that Lego has competition. You can't have both.

Lego does have competition. It's not a monopoly. However, it is a superior product, which is why it can do what you say.

Monopoly power does not mean you are a monopoly. I will go into detail just to clear this.

 

Monopoly power measures the extent you can increase your price above costs (average or marginal, depends on short or long run) while maximising profits. Obviously, the higher it is the more you resemble to a monopoly, hence its name. It is defined on the interval [0,1). At zero you are perfectly competitive. Below it you go bankrupt. If the firm has competition, the monopoly power rises with the decrease of the cross-price elasticity of demand between their products (e.g you don't give a **** if MegaBloks changes prices). In other words you can say the substitutability is low between its and other products for the average consumer.

 

Its general formula is: (p-c)/p, where p is the price and c is the (average/marginal) unit cost.

 

I hope I helped. Casual Economics by inversion lesson no.1.  

[DoNotInsertIntoMouth]

I don't ever buy them anyway. Bricklink is always cheaper if you spend the time doing it - plus they don't have all the parts on the wall.

[justafrog]

+1  I was at my Lego store last Sunday and they had better elements to choose from.  I do not sell on Bricklink but if you do I would think you would easily recoup the $1 and more.  They had many printed elements and the wheels for the Mars rover, hopefully it is EOL so they are clearing them out.

 

If LEGO is offering more diversity in less quantity of pieces on PAB, BL sellers may see some benefit. If they are simply offering a new generation of parts in the same low diversity high quantity model they had before, BL sellers won't benefit.

 

Most PAB pieces are heavily over-represented on BL and don't bring great prices.

[comicblast]

I don't ever buy them anyway. Bricklink is always cheaper if you spend the time doing it - plus they don't have all the parts on the wall.

So you expected the PAB Wall to have every LEGO element you need? Or even better, ever created? 

[Guest davewager78]

So you expected the PAB Wall to have every LEGO element you need? Or even better, ever created? 

 

Lets take a moment to reflect on how good that would be

[Alpinemaps]

Monopoly power does not mean you are a monopoly. I will go into detail just to clear this.

 

Monopoly power measures the extent you can increase your price above costs (average or marginal, depends on short or long run) while maximising profits. Obviously, the higher it is the more you resemble to a monopoly, hence its name. It is defined on the interval [0,1). At zero you are perfectly competitive. Below it you go bankrupt. If the firm has competition, the monopoly power rises with the decrease of the cross-price elasticity of demand between their products (e.*** you don't give a **** if MegaBloks changes prices). In other words you can say the substitutability is low between its and other products for the average consumer.

 

Its general formula is: (p-c)/p, where p is the price and c is the (average/marginal) unit cost.

 

I hope I helped. Casual Economics by inversion lesson no.1.  

 

Lawyer'd!  (Or is that Econ'd?)  

[justafrog]

Monopoly power does not mean you are a monopoly. I will go into detail just to clear this.

 

Monopoly power measures the extent you can increase your price above costs (average or marginal, depends on short or long run) while maximising profits. Obviously, the higher it is the more you resemble to a monopoly, hence its name. It is defined on the interval [0,1). At zero you are perfectly competitive. Below it you go bankrupt. If the firm has competition, the monopoly power rises with the decrease of the cross-price elasticity of demand between their products (e.*** you don't give a **** if MegaBloks changes prices). In other words you can say the substitutability is low between its and other products for the average consumer.

 

Its general formula is: (p-c)/p, where p is the price and c is the (average/marginal) unit cost.

 

I hope I helped. Casual Economics by inversion lesson no.1.  

 

 

Translated: LEGO has "competition" in the form of Megasux, etc., but the competition is so very terrible that  LEGO is able to enjoy the benefits of being a monopoly without actually being one.

[inversion]

Translated: LEGO has "competition" in the form of Megasux, etc., but the competition is so very terrible that  LEGO is able to enjoy the benefits of being a monopoly without actually being one.

Well, I am afraid I won't ever be able to put it that simply  

[Anakinisvader]

Bacon is expensive too. Pigs are a monopoly. Turkey bacon is gross.

[kiltyoneal]

Have you guys seen the same parts at each of the Lego stores in your area now?

 

I took a trip over the weekend and I noticed that the Lego store in that city had the most of the same pieces as my local Lego store.  In the past, the stores had vastly different types of pieces.  I wonder if all the Lego stores are going to be more consistent from now on.  That would be kind of a bummer.

[Stevenplays]

Bacon is expensive too. Pigs are a monopoly. Turkey bacon is gross.

Actually... I prefer it over normal bacon...

Don't shoot me pls

[Anakinisvader]

Actually... I prefer it over normal bacon...

Don't shoot me pls

Blasphemy!!!! The only thing better than bacon is: bacon wrapped in bacon.

[TheOrcKing]

How is blaming investors for PAB prices going up sarcasm? lol

I'm saying Anakin has a habit of posting jokes and just plain silly remarks with the odd exception of being remotely serious once in a blue moon. That is why I said he was being sarcastic. Also making up the word "investorflation" kind of gives way to thinking he is being the opposite of sincere.

Anyway, investors or part-outers are probably a small fraction of the equation as to Lego increasing their Pick-a-Brick cups and boxes. Aside from them doing so 'just because' or even market inflation, there is the factor of how well people have devised different methods for getting the most out of a cup. Think about how the game has changed from years ago where at one time people used to toss whatever parts they desired into a cup scarcely thinking of how to integrate everything into their container of choice whereas currently we employ methods disparate from all that. Now we effectively sort, stack, and build into the cup itself gaining more than any previous attempt. At least that goes for the cups yet the boxes are another matter that I would assume gets their prices raised due to association. I wonder how many even knew about the boxes before this increase.

On another note, an item being 'overpriced' is typically a matter of personal opinion. What I may feel is a good sale can still be considered for somebody else as 'over their price point'. There are some items in life being sold for far more than actual worth like designer clothing and diamonds.