Retail cost of Lego

[bricklayer]

Does anyone know how much a store would pay for Lego?(toys r us....walmart.....target etc etc)

How much is their markup actually??

[MCNwakeboard]

I remembered seeing this picture from a toy fair showing a 35% profit margin. Though I am sure that some retailers (like TRU) get additional discounts because I couldn't see them doing BOGO 50% off sales all the time with free shipping and still earn a profit. Perhaps the TRU markup during the rest of the year makes up for the sales every other week.

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Edited July 19, 2011 by MCNwakeboard

[Masked Builder]

I never noticed that before. Nice work there MCNwakeboard.

[22kane]

I remembered seeing this picture from a toy fair showing a 35% profit margin. Though I am sure that some retailers (like TRU) get additional discounts because I couldn't see them doing BOGO 50% off sales all the time with free shipping and still earn a profit. Perhaps the TRU markup during the rest of the year makes up for the sales every other week.

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TRU has always been a few dollars more than most retailers so their profit margin is slightly higher. Generally when a retailer puts items on sale they are receiving some type of rebate from the manufacturer. It can also greatly depend on how many units a retailer actually purchases from the manufacturer. For example- Target may agree to purchase 8000 units of a certain set and Lego may reduce the original purchase price plus give them credit for a certain number of returned sets. It really varies by retailer.

Companies like Walmart will generally put toys down to cost around the holiday season as to attract additional business but thats Walmart for you. It's because of them that you don't see many TRU's any more for that reason alone.

By the time a retailer has put a set to clearance they have usually made their money back and much more. But to really answer the original question, it's very difficult because each retailer will make specific deals with Lego. On an average though sets are generally purchased from Lego anywhere from 25% to 35% cheaper than what you are charged. Lego is also very strict about their pricing and all stores must conform to a specific price range. Hope that helps?

[MightyMegs]

I haven't worked for TRU since the early 90's... but back then it was a 50% markup. One of the best... with most other hot toylines at 10%-12% markup.

[Legoman]

It varies between countries.

In places such as the states, there's a lower markup because generally, theres a much larger turnovers in America. Thats due to to plenty of things from population density, to culture (consumerism and so forth - How likely people are to pay full price and such).

Over here in New Zealand, The markup on Lego is around 50% as a 'base' if you like (Some of the large retailers who buy in bulk can get volume discounts - I'd be fairly sure this happens for TRU's overseas too ). The larger sets such as exclusives are generally a lower markup (~35%) and the smaller sets are generally about 50%ish. However, In New Zealand, sales are very common, and it's not hard to find 20% off Lego on any given day - That would bring down their markup (Although sometimes sales are being passed down from lego, which is a different case)

Thats another reason for the varying prices between countries too

Others may be able to add to this/Correct it, But thats what I'm under the impression of.

[Karto]

I remember back in the early 90s a retailer telling me that the business relation with TLG was quite special: The minimum order amounts were high, making it hard for smaller stores. The buying prices per unit were very low compared to the suggested retail prices (40 to 80% lower) but then again, you were supposed to follow these suggested prices closely. TLG was very powerful at the time ... I'm wondering how the policy is turning these days.

[AussieJimbo]

I'm wondering how the policy is turning these days.

It's giving TLG a reputation as a bad corporate citizen in Australia.

Ripping off kids is not a good look.

PS: Can a Mod please change the title to the Wholesale Price of Lego

. The retail price is what consumers pay, not retailers.

:classic:

Edited July 20, 2011 by AussieJimbo

[Stash2Sixx]

Honestly, if you want to know how it works bricklayer, contact LEGO themselves. I'm sure you're going to get a better answer from them as oppossed to all of us.

AussieJimbo, I know you aren't happy with the prices in Australia, I can tell by a few of your recent posts, but let's keep it to topic and again, contact LEGO themselves and tell them how unhappy you are. Customer comments have a real impact there, believe me!

[Stash2Sixx]

No, if you flat out just ask, they won't give you any info. If you approach their business department and have a laid out plan of action for a company, then I'm sure you would sign an NDA and be given information.

Are you trying to start your own store, or are you just asking because?

[Hoboman]

Ok that was an interesting two posts Stash2Sixx. Makes me wonder what I missed.

[bricklayer]

No, if you flat out just ask, they won't give you any info. If you approach their business department and have a laid out plan of action for a company, then I'm sure you would sign an NDA and be given information.

Are you trying to start your own store, or are you just asking because?

Not going to start my own store.

I was just wondering because lego is perceived as expensive.....but how expensive is it really after stores add their cut?

Thats why I was after the markup.

[mr ndslfreak]

There is a lego discount in Estonia !Well it has been like 7 years!

Edited July 23, 2011 by mr ndslfreak