Modular Building Sets - Rumours and Discussion

[Off the wall]

I have no basis for making a reasonable comment on TLGs modular building profit margin. I have no clue.

But, I'd miss modulars if they weren't around.

Something does tell me that they're a ways down the priority list at Lego.

[opn2]

Edited September 27, 2014 by opn2

[Off the wall]

What makes you think so? Sure, they aren't priority numero uno or anything, but I haven't really seen anything to indicate that they're any less important than they have been in the past.

I didn't say they were less important than in the past. So, our statements aren't in conflict. End of story.

[AncientDayz]

What if there isn't another modular? What will we do!?!?

Build our own? :) Really though, the modulars are what caused me to come out of my dark ages and collect nearly 80,000+ bricks in two to three years. I've split into other themes (architecture, castle, city, ideas, etc), but my first love and main reason for acquiring bricks is the modulars. If they ceased, I could see my interest and purchases start to drop a bit. But, we just won't think of that scenario! Whatever it is going to be, I'm looking forward to a new build; hopefully, we'll get news/leaks soon!

[opn2]

Edited September 27, 2014 by opn2

[Off the wall]

I know you didn't say exactly that. I took 'a ways down the priority list' as implying that they're not at the level of priority that they once were, and I was curious to know your thoughts were was all.

I don't know where they were, are or going to be as far as priority is concerned. But, on a scale of 1 to 100, I'm pretty sure modulars aren't one or one hundred. Somewhere in the vast middle is what I presume.........with no supporting evidence. 'A ways down'? Meh, who knows for sure, eh? Besides, I can't quantify 'a ways down'. I guess I probably maybe perhaps meant they weren't as critical to Lego as some series.

Sorry for the confusion. I can be that way at times.

[Faefrost]

I have no basis for making a reasonable comment on TLGs modular building profit margin. I have no clue.

But, I'd miss modulars if they weren't around.

Something does tell me that they're a ways down the priority list at Lego.

It depends on what you consider their priorities list. As I said above the PR releasing in January right after Christmas struck me as strange. The Modulars (and heck MOST of the D2C sets) more typically release at off cycle points. Lego does something like 80% of their tot al sales in 4Q between October and leading into Christmas. The Modulars always seemed to capitalize on that lul after the seasonal rush. So you are correct, they are not a Holiday Season priority. They are an off peak product line. But a steady most likely profitable one that seems to steadily bring in their new older generation of adult fans. I don't think they will give Modulars priority over getting Ninjago or Chima or Star Wars onto the shelves for Santa to deliver. But that does not mean they are by any means a low priority in the full calender.

[Herky]

I agree Faefrost, in the total Lego universe, modular buildings compared to the lines you mention aren't going to get the publicity that a licensed line would get due to the fact that it is a pain to get the license in the first place. Don't forget Hobbit III comes out this year and sets for that will be a huge focus in 4th Q. Chima is getting the reboot on tv with new episodes as is Ninjago. Star Wars isn't going to go away nor will Super Heroes lines with DC or Marvel, especially with Guardians being such a big hit and let's not forget those Turtles who just also had a successful movie. Technic is a huge line for them too along with Friends and the Disney princesses. So that makes what, 10 lines that they are going to focus on a bit above their proprietary modular and even Architecture lines.

I have to believe we will see the modular in early 2nd Q in 2015 if not later...oh add in the just announced Santa's workshop to that list above. If you look at the off licensed and really targeted AFOL products this year, you had the winter sets, the architecture line, the modular and while we do have 2 trains I think, there was also the mixer, and the Maersk ship (yes this is licensed but really geared to AFOL).

My local store manager told me the mixer and PR sold the best of all of these, so I do have to believe the modulars are good sellers, profit margin, who knows, but with the price increase on PR along with the smaller pieces, I would still guess it is 50% or more, trust me to make this it likely follows suit with a lot of other products, the manufacture costs (especially now that they have plants in China, Mexico, etc) are not as high as we might think. Sure oil drives this a bit since plastic is used in the construction, but I would guess if you take the retail price that it is made for 25% of that cost or less.

In the end all this means nothing really cause it doesn't get us to the next modular, but really good points by all. I would say IMO that TLG needs champions internally for each line, I am not sure how they do it, but I would put my designers into teams that work on each line with the ability to rotate to new teams every 2 years if they want. Each line then would run like a mini business that looks at everything from design to final product to accounting to whatever. I am not Ole though so who knows, just something for us to chat about while we wait I guess.

Edited August 11, 2014 by Herky

[RedBullLee]

One thing to bare in mind with the modulars is that even if they don't make a huge profit, they do get adults interested in Lego that perhaps otherwise wouldn't be (like myself - I have no interest in 'role play' or minifigs, but I do appreciate the techniques and 'style' of modular buildings). Many of those adults will have children who will then be introduced to Lego, and probably encouraged.

I have certainly encouraged my children to engage with Lego more - and of course it's me that pays for it.

So, it shouldn't be underestimated how much of a 'halo effect' the modular line has on the other lines.

[Eikichi]

Well, I really hope the modular theme will go for a long time. Even if it does not make as much profit as SW or Chima. And maybe it is thanks to these well-selling themes that Modular will stay there.

[VintageLegoEra]

The modular is for those who really appreciate it. Thats why not everyone into it and thus not making high demand.

Well, I am afraid of that, LEGO will shift from modualr style to creator style like: Farms, Houes and what we have seen in the creator category.

Hope they carry on making the Modular building which belongs to original series: CC, GG,....etc

[Blakstone]

I am not concerned about the Modular line ending. While it is not their biggest money marker, it highlights what people can do with LEGO better than any other line and it drives a lot of other spending as AFOLs attempt to create their own Modular style buildings.

I think what is happening is that LEGO is doing a better job of stopping leaks either from being pulled from their servers or other sources. We may not know exactly what the next Modular is until its announcement.

[VintageLegoEra]

I agree...better to be announced on time!

[peter_m]

Modular buildings' series is an AFOL magnet - TLG will not waste it's potential. I have this theory that they will extend the life of each new modular building (Emporium has already been 'in stock' longer than Fire Brigade) but they will keep on releasing new sets in the future.

Edited August 12, 2014 by peter_m

[VintageLegoEra]

Modular buildings' series is an AFOL magnet - TLG will not waste it's potential. I have this theory that they will extend the life of each new modular building (Emporium has already been 'in stock' longer than Fire Brigade) but they will keep on releasing new sets in the future.

I love to hear such a words :-)

[Eikichi]

I think we saw the first official images of the Parisian restaurant at the beginning of october 2013. But I don't remember when it was announced. I found a mention here (first half of august 2013).

[syaorankung]

Modular buildings' series is an AFOL magnet - TLG will not waste it's potential. I have this theory that they will extend the life of each new modular building (Emporium has already been 'in stock' longer than Fire Brigade) but they will keep on releasing new sets in the future.

I'm totally agree with you! :)

[KringlesBricks]

Modular buildings' series is an AFOL magnet - TLG will not waste it's potential. I have this theory that they will extend the life of each new modular building (Emporium has already been 'in stock' longer than Fire Brigade) but they will keep on releasing new sets in the future.

These modulars are what got me out of my dark ages and into my LEGO hobby. If it weren't for these modulars, I wouldn't have LEGO as a relaxing hobby

[VintageLegoEra]

These modulars are what got me out of my dark ages and into my LEGO hobby. If it weren't for these modulars, I wouldn't have LEGO as a relaxing hobby

Same applies to me!..:-)

[Chocolatecake]

I am not concerned about the Modular line ending. While it is not their biggest money marker, it highlights what people can do with LEGO better than any other line and it drives a lot of other spending as AFOLs attempt to create their own Modular style buildings.

I think what is happening is that LEGO is doing a better job of stopping leaks either from being pulled from their servers or other sources. We may not know exactly what the next Modular is until its announcement.

Totally agree.

LEGO has become far better to stopping leaks, and controlling when they wants to announce new sets.

I fully understand them, why give those knock-off brands the possibility to release products at the same time or worse before LEGO.

So patience must be the key word, even though it's hard.

[glendo]

i have another angle to consider; there are still currently 5 modulars still for sale in the range. That's a lot of different modulars that are generally all still available. Perhaps TLG will hold off on another release until 1 o 2 go EOL, reducing the range.

[Herky]

Glendo, you might be right, and your picture with the parts is exactly a visual of what I mean when folks as if Lego is priced right, I would guess folks would say the parts on the left are worth more than the right.

I didn't realize there were 5 still for sale, bet they will wait til 2 more are retired, I would...so the ones out there are what, Grand Emporium, Fire Brigade, Town Hall, Paris Restaurant and ? Which one am I missing?

[Lego Conductor]

Palace Cinema is the 5th one for sale right now.

[rollermonkey]

FB is retired. Pet Shop is still active.

[Faefrost]

Glendo, you might be right, and your picture with the parts is exactly a visual of what I mean when folks as if Lego is priced right, I would guess folks would say the parts on the left are worth more than the right.

I didn't realize there were 5 still for sale, bet they will wait til 2 more are retired, I would...so the ones out there are what, Grand Emporium, Fire Brigade, Town Hall, Paris Restaurant and ? Which one am I missing?

Regarding his sig picture. Lego doesn't really price by number of parts. They actually have a rather complex structure where each individual part type has an associated price or cost that is added to the overall set price or budget. At the heart of it is really price per gram of plastic. The 10 cents per part thing is one part a rough buyers way of eyeballing value in an overly simple way and 2 parts myth. Remember Lego doesn't really market "part count". It is only prominent on North American boxes because it is required to be there. Euro boxes don't have it. AFOL focused sets will have overall higher piece counts, and lots of little parts, not because Lego is padding numbers, but because that is the type of build experience most AFOLs seem to prefer. More small detail parts. Fewer big "<insert that tiresome argument>" ones. Lots of texture and fidly bits and greebling. But at the end of the day the price reflects the production cost and margin for each individual piece in the box. Which ultimately goes mostly by weight, barring certain production complexities.

We should always take care not to let observational bias rule our judgement and perceptions. Someone did a rather nice study of the sets a year or so ago, and found that once you factored in certain fixed minimum costs for packaging the price by weight curve was a much much better predictor, and seemed to slay many AFOL myths including elevated costs of licensed sets, and the infamous price per piece formula.