Lego to cut 1,400 jobs and 'reset company' after sales drop

Modern lego's aren't even for kids and they know it. I have a few brickheads in the office and they go to conventions, buy luxury sets, and throw tens of thousands into the toys. Its a brand for middle aged geeks who can afford to buy super crazy sets and who show them off/etc, or hobbyists who make custom sets.

Of course oarents probably still buy lego's for their kids, but if they really wanna market this stuff as a childrens toy again, they should probably split the lines. Inexpensive, cheaper, slightly lower quality kids legos, with tons of cool sets at affordable prices, and then the luxury adult lines at current prices.
They already have split lines for adults and kids. Most adult collectors aren't going to buy a 10 dollar City police car, and yet those types of sets do very well.
 
Modern lego's aren't even for kids and they know it. I have a few brickheads in the office and they go to conventions, buy luxury sets, and throw tens of thousands into the toys. Its a brand for middle aged geeks who can afford to buy super crazy sets and who show them off/etc, or hobbyists who make custom sets.

Of course oarents probably still buy lego's for their kids, but if they really wanna market this stuff as a childrens toy again, they should probably split the lines. Inexpensive, cheaper, slightly lower quality kids legos, with tons of cool sets at affordable prices, and then the luxury adult lines at current prices.
Have you actually looked at what LEGO sells? They already do this.
 
Lego is expensive, but at least it's durable and universally enjoyable, which makes it a convenient hand-me-down. My sister and I used to have a giant tote full of Lego. When we outgrew it, we passed it on to our parents' friends, who passed it on to their cousins, who passed it on to their friends. Now my sister has two young kids, and she managed to follow the grapevine and get our Lego tote back. Opening that thing up was a rush of nostalgia.

So think of Lego as a long-term investment :D
 
Lego is expensive, but at least it's durable and universally enjoyable, which makes it a convenient hand-me-down. My sister and I used to have a giant tote full of Lego. When we outgrew it, we passed it on to our parents' friends, who passed it on to their cousins, who passed it on to their friends. Now my sister has two young kids, and she managed to follow the grapevine and get our Lego tote back. Opening that thing up was a rush of nostalgia.

So think of Lego as a long-term investment :D

Exactly this. Lego last forever. My grandkids will be playing with my box of Lego from 20 years ago.
 
Modern lego's aren't even for kids and they know it. I have a few brickheads in the office and they go to conventions, buy luxury sets, and throw tens of thousands into the toys. Its a brand for middle aged geeks who can afford to buy super crazy sets and who show them off/etc, or hobbyists who make custom sets..

Going to any of the lego conventions or events will prove this to be wrong. When my oldest was more into them a year or two ago we went to lego fest for a couple of years. Kids running wild everywhere
 
I feel like a lot of people don't realize things like this exists anymore:

E990DD48.zoom.jpg


That's 1600 pieces for $60, or under 4 cents a piece. That's a lot of pieces for plenty of creativity at a reasonable price without any instruction booklets included.
 
LEGO is still a kids toy. Running events at work for building stuff, we get tons of kids. Most of the time adults just sit back and wonder what the big deal is. Many of their responses are like many posters in here: "I remember when you could just put them together however you want. You can't do that anymore since they give you instructions."
It's like they aren't paying attention to what their kids are doing at that moment, which is slapping pieces together and making whatever the hell they want.

And GAF has done that as well. Look at the mileage GAFfers with some imagination got out of $15.

Look at what some others that just dump pieces from a box together pulled off with an $18 set.

Uh, oh! Using a $20 set to be creative with. Obviously it's a ripoff and you can't do anything other than what the box says.

Yup. You can only do what the box says you can with this $20 set.

GAF created some great Mixels with only about $5-15 worth of pieces.

More $20 shenanigans. So many custom pieces that you can only use one way, since it is impossible to think of something else.

The last time someone had the gall to ask GAFfers to come up with an original idea with only $20 worth of parts.

From that last link, this is what the box said you could make with the set.
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But then, because of creative and imaginative thinking, GAFfers thought some things up. These are just some minor examples.

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32777670920_a7cd763918_c.jpg

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That is only scratching the surface of what you can do using such a limited number of parts.
 
I feel like a lot of people don't realize things like this exists anymore:

E990DD48.zoom.jpg


That's 1600 pieces for $60, or under 4 cents a piece. That's a lot of pieces for plenty of creativity at a reasonable price without any instruction booklets included.

Lego stores also let you just buy loose bricks as well for a reasonable price. I always just buy my son more bricks. The odd set, but mostly the large amount of basic blocks.
 
How much do you think action figures are nowadays? Have you seen the prices on Transformers? How long does it hold their attention and how often do they come back to it? Even years later, buying a new set and it all works with the old just making more options.

And the false narrative of inflation has already been debunked a page back.

Transformers for kids are typically under $10, they have whole lines devoted to low priced younger audience, the higher priced stuff is aimed at teens and higher. Hasbros does so many lines of transformers because it's targeting different age groups.

Same with Star Wars, when you can get a basic action figure for $6 or so, while the higher priced stuff aimed at collectors.

The young child action figure market has retained a price point floating around $5-6 for years now, it's a price point the big toy companies try to float around. LEGO has not retained their price as well.

Retention of attention to a toy doesn't mean a thing for a parent, what they care about is value. Spend 40-70 bucks on a small lego set or just get another toy for less than $10? And again the value of multiple LEGO sets lessens for kids as they only need blocks, they can care less what the set actually builds. Once they have a couple sets of LEGOs, the parents loose interest in getting more as the LEGOs are infinitely reusable.

It's funny folks are acting like there isn't a problem... when they are cutting tons of jobs
 
Transformers for kids are typically under $10, they have whole lines devoted to low priced younger audience, the higher priced stuff is aimed at teens and higher. Hasbros does so many lines of transformers because it's targeting different age groups.

Same with Star Wars, when you can get a basic action figure for $6 or so, while the higher priced stuff aimed at collectors.

The young child action figure market has retained a price point floating around $5-6 for years now, it's a price point the big toy companies try to float around. LEGO has not retained their price as well.

Those 5-6$ Action figures are trash. It's the same expectation when u buy a 3$ polybag you don't get much.

But you can get 12-15$ Lego sets that are way better products for the price. Speed champion sets, cars n trucks or starter super hero sets.

It's like half the posts in this thread expect quality products for nothing. Things don't work that way.
 
The young child action figure market has retained a price point floating around $5-6 for years now, it's a price point the big toy companies try to float around. LEGO has not retained their price as well.

Retention of attention to a toy doesn't mean a thing for a parent, what they care about is value. Spend 40-70 bucks on a small lego set or just get another toy for less than $10? And again the value of multiple LEGO sets lessens for kids as they only need blocks, they can care less what the set actually builds. Once they have a couple sets of LEGOs, the parents loose interest in getting more as the LEGOs are infinitely reusable.

It's funny folks are acting like there isn't a problem... when they are cutting tons of jobs

Have lego ever been at that <$10 price point? There are some great lego sets in the $10-$20 price point, phonciple posted a few examples.

They are cutting jobs because they added on 1000s of jobs over 15 years of continuous growth after near bankruptcy. A correction had to happen sometime.
 
Transformers for kids are typically under $10, they have whole lines devoted to low priced younger audience, the higher priced stuff is aimed at teens and higher. Hasbros does so many lines of transformers because it's targeting different age groups.

Same with Star Wars, when you can get a basic action figure for $6 or so, while the higher priced stuff aimed at collectors.

The young child action figure market has retained a price point floating around $5-6 for years now, it's a price point the big toy companies try to float around. LEGO has not retained their price as well.

Retention of attention to a toy doesn't mean a thing for a parent, what they care about is value. Spend 40-70 bucks on a small lego set or just get another toy for less than $10? And again the value of multiple LEGO sets lessens for kids as they only need blocks, they can care less what the set actually builds. Once they have a couple sets of LEGOs, the parents loose interest in getting more as the LEGOs are infinitely reusable.

It's funny folks are acting like there isn't a problem... when they are cutting tons of jobs

Whars funny is pretending Lego doesnt have sets at all different price points yet all action figures for kids are $5

https://smile.amazon.com/Playskool-Transformers-Energize-Heatwave-Fire-Bot/dp/B00P2SNIXG/ref=sr_1_8?ie=UTF8&qid=1504977145&sr=8-8&keywords=transformers
$14.99

https://smile.amazon.com/Transformers-Combiner-Activator-Combiners-Sideswipe/dp/B01LWV6BEQ/ref=sr_1_47?ie=UTF8&qid=1504977449&sr=8-47&keywords=transformers

$20

https://smile.amazon.com/Star-Wars-Force-Imperial-Figure/dp/B01N4V0A87/ref=sr_1_95?s=toys-and-games&ie=UTF8&qid=1504977657&sr=1-95&keywords=star+wars
$20

https://smile.amazon.com/Transformers-Generations-Titans-Decepticon-Revolver/dp/B01BY1KSXC/ref=sr_1_17?s=toys-and-games&ie=UTF8&qid=1504977732&sr=1-17&keywords=transformers+titans+return
$50

As a Transformers fan they have absolutely not retained a price point of $5-8 except for the tiny Legends class. They changed basics to Deluxe class and upped the price first to $12 and then $15
 
Glanced at the wall to the left and saw a bunch of $200 sets, which is still too much for something that will probably take a few hours to put together. Like someone in this thread said earlier, LEGOs are too high of a cost to entertainment ratio when compared to something like videogames. I have a lot of disposable income and I still think the prices they are asking for LEGO sets are too much for anyone that isn't a hardcore LEGO collector. I'm not arguing that the LEGOs don't cost that much to make. I am saying that as a consumer with only a casual interest, the price was too high for me.

We went from "I saw one set and left" to "I saw once set and then glanced at a wall and then left."

It's not working, man. Drive by comments suck sometimes.
 
We went from "I saw one set and left" to "I saw once set and then glanced at a wall and then left."

It's not working, man. Drive by comments suck sometimes.

One city building is "basic" to me. For that price, I expect several city buildings. Its not a drive by post. You said there weren't any city sets that cost $300 and I provided proof that they exist. Now you want to argue over what is "basic" after I proved that they exist. Next, you'll want to argue over how many breaths I took while in the store. If you've ever been in a LEGO store and seen how small they are, then you would know that it is very easy to scan to your left and right and see prices. No point in arguing over something petty. It's not worth wasting time trying to prove a point when I simply stated how seeing a $300 city set made me feel.
 
One city building is "basic" to me. For that price, I expect several city buildings. Its not a drive by post. You said there weren't any city sets that cost $300 and I provided proof that they exist. Now you want to argue over what is "basic" after I proved that they exist. Next, you'll want to argue over how many breaths I took while in the store. If you've ever been in a LEGO store and seen how small they are, then you would know that it is very easy to scan to your left and right and see prices. No point in arguing over something petty. It's not worth wasting time trying to prove a point when I simply stated how seeing a $300 city set made me feel.

you were wrong.

suck it up and move on.
 
One city building is "basic" to me. For that price, I expect several city buildings. Its not a drive by post. You said there weren't any city sets that cost $300 and I provided proof that they exist. Now you want to argue over what is "basic" after I proved that they exist. Next, you'll want to argue over how many breaths I took while in the store. If you've ever been in a LEGO store and seen how small they are, then you would know that it is very easy to scan to your left and right and see prices. No point in arguing over something petty. It's not worth wasting time trying to prove a point when I simply stated how seeing a $300 city set made me feel.
It's. Not. A. City. Set.
 
One city building is "basic" to me. For that price, I expect several city buildings. Its not a drive by post. You said there weren't any city sets that cost $300 and I provided proof that they exist. Now you want to argue over what is "basic" after I proved that they exist. Next, you'll want to argue over how many breaths I took while in the store. If you've ever been in a LEGO store and seen how small they are, then you would know that it is very easy to scan to your left and right and see prices. No point in arguing over something petty. It's not worth wasting time trying to prove a point when I simply stated how seeing a $300 city set made me feel.

That's a Ninjago set, not a City set. Yes, city is in the title, but it is not branded part of the City theme.
The most expensive City branded sets are usually trains, and they don't usually go above $200.
 
Have they recently built an influx of LEGO Stores? We have one that's fairly newish in Salt Lake City up north and but it sure wasn't there a couple of years ago.
 
This makes absolutely no sense to me.

What are they spending their money on?

How expensive can plastic parts be?

Do they just have way too many employees?
 
One city building is "basic" to me. For that price, I expect several city buildings. Its not a drive by post. You said there weren't any city sets that cost $300 and I provided proof that they exist. Now you want to argue over what is "basic" after I proved that they exist. Next, you'll want to argue over how many breaths I took while in the store. If you've ever been in a LEGO store and seen how small they are, then you would know that it is very easy to scan to your left and right and see prices. No point in arguing over something petty. It's not worth wasting time trying to prove a point when I simply stated how seeing a $300 city set made me feel.


One woman with a mysterious smile is "basic" to me. For all the hype it's been given, I expected at least several women.

Your weirdly specific definition of quantity =/= quality.

Though that set has both quantity and quality if you take more than a cursory glance at it.
 
I can't believe people actually recommending the cheap knock-offs.

If you're just buying their own sets - well, you're a bit cheap, but fair enough.

But the direct copies of the Lego sets are offensive. Lego might be expensive but some of that money pays the salaries of the design team who get fuck all when you buy the cheap Chinese replicant.

It's no better than game piracy.

Which is amusing as Lego originally was a knock off of Kiddicraft, a British company.

And Lego eventually bought the rights to Kiddicraft blocks before starting legal proceedings against Tyco for copying 'their' concept, as they knew that if they didn't Kiddicraft could interject and they'd be in all sorts of problems.

Lego are no angels when it comes to ripping off.
 
One city building is "basic" to me. For that price, I expect several city buildings. Its not a drive by post. You said there weren't any city sets that cost $300 and I provided proof that they exist. Now you want to argue over what is "basic" after I proved that they exist. Next, you'll want to argue over how many breaths I took while in the store. If you've ever been in a LEGO store and seen how small they are, then you would know that it is very easy to scan to your left and right and see prices. No point in arguing over something petty. It's not worth wasting time trying to prove a point when I simply stated how seeing a $300 city set made me feel.

Firstly. This model consists of different modules and foors, simulating a corner of an asian city. It's not 'one' building per se. But that's just semantics.

Secondly, people rightfully pointed out that this is a big, exclusive set aimed at adult fans. It's a showpiece for Lego, a collector's tem. Just like the UCS series is for Star Wars (those are actually made to be displayed in stead of played with). People also called you out on the word 'basic', which you use the most stupid excuse for at the moment. This is by no means basic. This is a 4800 piece set, with tons and tons of little details, play feautures, unique building techniques, etc. Basic is four walls and a roof.

Lastly, whatever you say you ment by it know, people read your post as confirmation of the 'Lego is way to expensive, it's become absurd' rethoric some adult fans of Lego have been arguing against. And people argued that your train of thought is incredibly flawed, as this set not only gives you a lot of bang for your buck, but isn't even a good example of the 'median' Lego set. And yes, in a Lego store you'll see a lot of expensive sets, as they are the main distributers of the big aimed-at-adult sets like UCS Star Wars, Direct-to-customers collector's sets, Cretaor Expert sets etc. People have called you out that Lego has a lot of choice of cheaper sets. They are still 'expensive', but the quality is there too.

So, you've been called out. There is no need to dig yourself in a deeper hole. You can also just accept you might've been wrong...
 
This makes absolutely no sense to me.

What are they spending their money on?

Do they just have way too many employees?

They had positive growth for more than a decade and hired on more designers, marketing people, opened more stores, are developing new kinds of bricks and plastic materials that are eco friendly and 100% renewable etc.
 
you were wrong.

suck it up and move on.

It's. Not. A. City. Set.

That's a Ninjago set, not a City set. Yes, city is in the title, but it is not branded part of the City theme.
The most expensive City branded sets are usually trains, and they don't usually go above $200.

Then you make it into several buildings, it's Lego. You're getting 5k pieces in that set.

You made some shit up, you've been called on it, time to take the L.

One woman with a mysterious smile is "basic" to me. For all the hype it's been given, I expected at least several women.

Your weirdly specific definition of quantity =/= quality.

Though that set has both quantity and quality if you take more than a cursory glance at it.

Firstly. This model consists of different modules and foors, simulating a corner of an asian city. It's not 'one' building per se. But that's just semantics.

Secondly, people rightfully pointed out that this is a big, exclusive set aimed at adult fans. It's a showpiece for Lego, a collector's tem. Just like the UCS series is for Star Wars (those are actually made to be displayed in stead of played with). People also called you out on the word 'basic', which you use the most stupid excuse for at the moment. This is by no means basic. This is a 4800 piece set, with tons and tons of little details, play feautures, unique building techniques, etc. Basic is four walls and a roof.

Lastly, whatever you say you ment by it know, people read your post as confirmation of the 'Lego is way to expensive, it's become absurd' rethoric some adult fans of Lego have been arguing against. And people argued that your train of thought is incredibly flawed, as this set not only gives you a lot of bang for your buck, but isn't even a good example of the 'median' Lego set. And yes, in a Lego store you'll see a lot of expensive sets, as they are the main distributers of the big aimed-at-adult sets like UCS Star Wars, Direct-to-customers collector's sets, Cretaor Expert sets etc. People have called you out that Lego has a lot of choice of cheaper sets. They are still 'expensive', but the quality is there too.

So, you've been called out. There is no need to dig yourself in a deeper hole. You can also just accept you might've been wrong...


Keep moving those goal posts. The $300 city set/box/building exists. Deal with it.
 
We never contested that a $300 set exists. We contested that it isn't branded as part of the City line. Prove that it is part of the City brand, then we will deal with it.

"That's not part of the third edition retro city set. That's a second edition big town set, even if it does say city right there on the box."
 
Keep moving those goal posts. The $300 city set/box/building exists. Deal with it.
Who is moving goal posts? Do we deny these big sets exist? No. Do we put them in perspective to combat you 'Lego is too expensive'-message? Yes. Did we argue this set is anything but basic? Yes. Are you unable to deal with your misconception when called out?

It's not because there are mansions and estates on the market you can't buy a little appartment.
 
You called it a basic city set. It isn't one in any way. Take the loss and move on.

Who is moving goal posts? Do we deny these big sets exist? No. Do we put them in perspective to combat you 'Lego is too expensive'-message? Yes. Did we argue this set is anything but basic? Yes. Are you unable to deal with your misconception when called out?

It's not because there are mansions and estates on the market you can't buy a little appartment.

To a hardcore collector, that may not look basic, but to a casual, that was too much money for what looks like one building. Immediate thought was "$300" for plastic?!?".
 
"That's not part of the third edition retro city set. That's a second edition big town set, even if it does say city right there on the box."

When you say City set, a lego fan will assume it's from the Lego City-line, which is a subbrand. And that subbrand, aimed at kids, does not have 300 dollar sets.

But that's completely besides the point. By calling Ninjago City 'basic', you implied that the basic Lego set is a 300 dollar set. Even implying that set is basic is absolutely ridiculous. This is iirc the fourth biggest set Lego ever released after Taj Mahal and the two UCS Millenium Falcons. 4800 pieces. That's not basic at all, that's an exclusive premium set, in parts a way for Lego to show off. A pride piece so to say.

You've been called out about your complete misconception, again and again and again, but still want to stick to your guns and keep diverting the conversation to semantics.
 
Which is amusing as Lego originally was a knock off of Kiddicraft, a British company.

And Lego eventually bought the rights to Kiddicraft blocks before starting legal proceedings against Tyco for copying 'their' concept, as they knew that if they didn't Kiddicraft could interject and they'd be in all sorts of problems.

Lego are no angels when it comes to ripping off.

So Lego were shit a few decades ago, and Lepin are shit right now. What's your point?
 
To a hardcore collector, that may not look basic, but to a casual, that was too much money for what looks like one building. Immediate thought was "$300" for plastic?!?".

To anyone even remotely familiar with regular Lego sets, hell, anyone who has ever seen a regular Lego building set, Ninjago City is anything but basic. Shit, I've got back into Lego after my wife, who did only have a remote interest in Lego saw an expensive Expert set and said: shit, these things are amazing, do you want to buy one? Even she recognised it for what it was, and it was a set half the pieces and half the price of Ninjago City.

If the enormous amount of detail apparent from the box alone and pieces isn't a dead giveaway, the huge box sure is. You expect a box that size and that heavy cost what? 50 dollars because it is one building??
 
Fucking hell, every Lego thread except for the community one is the same old shit.

Big Lego sets cost a lot of money. I am shocked.

On the actual topic, this kind of thing seems natural considering Lego's massive growth since their time skirting with bankruptcy. They need to streamline stuff at this point, that just makes sense.
 
This makes absolutely no sense to me.

What are they spending their money on?

How expensive can plastic parts be?

Do they just have way too many employees?

Feel free to go through their annual report https://www.lego.com/en-us/aboutus/lego-group/annual-report

It contains no business secrets, but you can see how much they spend for direct production costs, sales and distribution parts etc...

Some info is hidden there. Like the Licenses & Royalties being as big sum as the half of the cost of raw materials or almost half of employee wages. And unlike somebody put it here, almost no studios ask for flat license fee, some are known to ask % from retail price...
Or that they hired ~3000 employees in 2016, but plan to just 1400, which means even if they fall below 2016 sales now, they still will keep more employees they had in 2015 (but there are signs they will sack more in high cost countries like Denmark then they hired mostly in lower cost mostly manufacturing countries :( )

Also worth noting is this is just for LEGO, it does not include retail margin which for big partners with own distribution (think Wallmart or Amazon) can be as big as half of the recommended retail price (depends on set and agreement). The smaller shops that need to go through wholesaler are limited by lot lower margins...

It is not LEGO, but here is a lot better written article on sneaker prices and margins with pictures that makes it easier to undestand
http://www.complex.com/sneakers/2016/05/sneaker-manufacturer-cost
Just that yellow band with manufacturer profit would be lot thicker for LEGO :D about 12/100 after taxing
 
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