As I have been reviewing the most recent wave of LEGO® Marvel sets, the issue of relative value has been troubling me increasingly. After building The Milano and Dancing Groot for review and being thoroughly happy with the value of those sets, I moved onto The Helicarrier and I was a little disappointed with what was on offer for the price. I actually felt a little mean about being so critical. Nevertheless, I embarked upon my analysis of set 76291 Avengers Assemble: Age of Ultron with a degree of pessimism.
Before proceeding further, I decided to investigate the relative cost of the August 2024 LEGO Marvel sets against other IP (intellectual property) sets and regular LEGO sets, to judge if my concerns were justified.
Products in this article were gifted by The LEGO Group; the author's opinions are their own.
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The cost of IP vs. non-IP sets
There have long been complaints among AFOLs of an “IP Tax”, bemoaning the seemingly extortionate price of some licensed sets, because of the royalties charged to The LEGO Group by the license holder. Last year, Chris Clarke on BrickNerd published a thorough analysis and discussion of price differentials.
To summarise Chris’s findings, it’s fair to say that we should expect to pay roughly 20% more for a licensed set than for a comparable non-licensed set. This comes from the hypothesis that a more accurate method of comparison is by examining the weight of sets, and not the common practice of calculating the average price per part.
Broadly, I think this new wave of sets has been overpriced (with the exception of The Milano and to a lesser extent, Dancing Groot) and not merely by the 20% BrickNerd’s article suggests.
I am basing this thought process on BrickNerd’s findings, which use UK prices:
Obtaining parts from licensed sets would cost 5.92p per gram (on average) while acquiring them from unlicensed sets would just cost 4.94p per gram.
However, later in the article Chris elaborates that, based on a smaller sample average, LEGO Marvel has an even higher price per gram than all other IP themes, with the price per gram coming in at 6.49p.
I don’t want to be overly negative when, subjectively, LEGO produces such lovely engaging products. I’m trying to give these sets the fairest chance in terms of ‘raw LEGO commodity’ value. Therefore, as I try to ascertain what it is reasonable to expect the prices of this current wave of sets to be, I have used Chris' higher price per gram of 6.49p which is based upon earlier LEGO Marvel sets.
The value of August 2024 LEGO® Marvel sets
Set Piece count |
Price (UK) |
Weight |
Cost per gram | Price if 6.49p per gram | % over 6.49p |
76295 The Avengers Helicarrier 509 pieces |
£69.99 | 851g | 8.22p | £55.23 | 26% |
76291 The Avengers Assemble: Age of Ultron 613 pieces |
£89.99 | 954g | 9.43p | £61.91 | 45% |
76290 The Avengers vs. The Leviathan 347 pieces |
£44.99 | 425g | 10.59p | £27.58 | 63% |
76289 Thor vs. Surtur Construction Figure 245 pieces |
£24.99 | 279g | 8.96p | £18.11 | 38% |
76288 Iron Man and Iron Legion vs. Hydra Soldier 135 pieces |
£19.99 | 153g | 13.07p | £9.92 | 101% |
76297 Dancing Groot 459 pieces |
£39.99 | 506g | 7.90p | £32.84 | 22% |
76286 The Milano 2090 pieces |
£159.99 | 3042g | 5.25p | £197.43 | -19% |
Comparing 76290 Avengers vs. The Leviathan to similar sets
- 31157 Creator Exotic Peacock containing 355 pieces, with a weight of 440g
- 76962 Baby Bumpy: Ankylosaurus containing 358 pieces, with a weight of 381g
- 71475 Mr. Oz's Space Car containing 350 pieces, with a weight of 496g
- 60407 Double-Decker Sightseeing Bus containing 384 pieces, with a weight of 589g
Set Piece count |
Price (UK) |
Weight | Cost per gram | Price if 6.49p per gram | % over 6.49p |
31157 Creator Exotic Peacock 355 pieces |
£17.99 | 440g | 4.09p | £28.56 | -37% |
76962 Baby Bumpy: Ankylosaurus 358 pieces |
£19.99 | 381g | 5.24p | £24.73 | -19% |
71475 Mr. Oz's Space Car 350 pieces |
£24.99 | 496g | 5.04p | £32.19 | -23% |
60407 Double-Decker Sightseeing Bus 384 pieces |
£24.99 | 589g | 4.24p | £38.23 | -35% |
Set | Pieces | Weight | Cost per gram |
10329 Tiny Plants | 758 | 706g | 6.37p |
10331 Kingfisher | 834 | 812g | 5.54p |
76922 BMW M4 GT3 & BMW M Hybrid V8 | 676 | 756g | 5.95p |
76924 Mercedes-AMG G 63 & Mercedes-AMG SL 63 | 808 | 916g | 4.91p |
31154 Forest Animals: Red Fox | 667 | 834g | 5.39p |
42602 Space Research Rover | 514 | 689g | 6.53p |
I can’t explain why the cost of the Tiny Plants seems to contradict the price per gram of unlicensed sets. Perhaps it has a lower production run and so the development costs are higher? We’d love to hear readers’ thoughts on why this might be.
Further factors
Instruction booklets and boxes
Minifigures
Conclusion
READ MORE: Review: 77092 Great Deku Tree 2-in-1 from LEGO® The Legend of Zelda™
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Having worked in licensing and merchandising, most licenses for well known brands sit in the 7-15% range (15% being high), and will come down to what is allowed ie characters, logos, theme songs, stories etc. One would expect Marvel and Disney licenses in the 10-12% range.
ReplyDeleteSo yes one would expect a licensed theme to be priced 10-12% higher than an unlicenced theme. So the wildy varying prices will be less to do with the IP holder, and more with how much LEGO feel they can charge the customer, or over charge them.
The LEGO X-jet 76281, 359 pieces for £75, 20.8p per piece is way overpriced for what it is. That won't be because its licensing fee is hugely higher, its what LEGO feel like they can charge that the market will be (given X-men '97 driving interest, 'rare' figures etc).
It isn't so much an "IP Tax", its more LEGO overcharging and trying to get the best margin possible. If the LEGO fans place the blame on "IP Tax" and the IP holder, rather than the LEGO group, I'm sure lego are happy for that to continue.
Fantastic insight, thank you.
DeleteReally valuable info, without running any numbers that 10-12% sounds like it would generally and answer for most of the difference in cost between licensed and unlicensed sets (thereby supporting the BrickNerd hypothesis). Thank you!
DeleteYou are absolutely right about any further increase in price after the R&D done by LEGO though... that's all profit margin!
I feel like there's a duty for reviews to highlight when things are significantly out of the ordinary and these LEGO Marvel sets were out of the ordinary! Had there been more to recommend within some of them it would have been easier to overlook pricing anomalies.
"It isn't so much an "IP Tax", its more LEGO overcharging and trying to get the best margin possible."
DeleteI feel this is the case with a lot of short-duration-availability licenced sets. Notably 76232 The Hoopty which was entirely insane. It was commented on and this stuck with me, that the £85/$90 price tag was not for me wanting to buy a reasonably priced Marvel set but to tie in with a short-hyped movie release and to get immediate buys from the people enjoying the film, for it to fall off and be discontinued relatively quickly not last on shelves. It was prices with that thought of "If I price it 100 today and get 100 sales, it's more then if I price at 50 and get 150 sales". Gorge as much as you can from the immediate buyers and don't care if it gets discounted.
It's distinct from FOMO which is where the deadline promotes buying in a limited window (usually with the sets not being discounted much up to discontinuation), since these insanely priced sets tend to be bulk discounted well before they leave shelves by high ratios. But Lego won't care since they still made buck in the initial wave of buyers.
This theory might not account for doing this for sets based off 10 year old films but at that point you might well say there's a Star Wars-like market for diorama and shelf display people who want to collect their favourite film scenes (and get them even brought as birthday / Christmas presents) and it's selling to them not the wider public or even kids (who might not have even been born when the original Avengers came out!). Bring them out every year, discontinue quick and keep the prices high so it's all fresh and new.
I think it might be worth a followup article theorising based on the Lego annual financial reports which tends to list the highest selling themes and reflect that short term it might be working but long term it's going to very potentially bite back as the target market might start to reject the incredibly high prices and it eats shelf space with non-sellers in retailers compared to better over the long term sales of sets which get people to then buy more related sets.
Great article, thanks.
ReplyDeleteI think price vs value (to me as the consumer) is a question/argument that applies to most things in life...., right? Is that house on the beach worth quadruple the one that is one mile from the beach? (It is to someone).
Personally I still like the 10c per part measure because it is quick and easy, although I always subtract $5 per minifig first (and accept the license tax!). In the end I will likely buy what decide I really want based on the price and what is in the box rather than the MSRP. (I recently saw the Hoopty set at 50% off as wasn't even tempted...I have plenty of boring light bley!)
Thank you! I feel that the price per part method (particularly when in a real world shop) is definitely useful as a 'rule of thumb'.
ReplyDeleteThen, the pricing for the X-Jet and the Hoopty has been widely criticized in the fan community. Sometimes, it feels as if the marketing team widely overestimate the demand. (Certain sales and deals, as for instance for the Hulkbuster and Vidiyo sets clearly seem to imply there's been some original hubris involved.)
ReplyDelete