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Brokering Bricks: The World of Lego Investing

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Re: Brokering Bricks: The World of Lego Investing

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As a kid I adored Lego. I think fondly of all the time I spent playing with my collection and all the creations I made. As I entered my early teen years my collection had grown considerably and it was taking up a lot of space, and I was spending less and less time with Lego. I knew a younger kid down the block who was in the peak of his Lego phase and I donated my entire collection -- around five or so 30 gallon tras…

Or they can have a website where one can order a set and have a robot setup the kits from standard bricks. This should work for the majority of sets and would require a relatively small set of custom bricks.

I'm an industrial engineer and geek out about manufacturing stuff.

Lego used to make custom pieces all the time. That, along with other missteps, nearly killed the company.

Product variety means changeovers (switching molds in the plastic injection molding machines). More quality problems will occur. Low volume parts for one set may use a tiny fraction of the mold's useful life, making the unit cost much higher than a 2x4 brick. You need more inventory to successfully fulfill any bulk order you receive. You also need to store the molds in an environment where they won't degrade over time.

Single Minute Exchange of Dies (SMED) and Economic Order Quantity (EOQ) work hand in hand dictating how to economically run a facility like this. EOQ considers storage costs, the fixed cost to setup the tool, demand per unit time, and time value of money to minimize the per-unit cost.

SMED reduces the fixed costs which are spread across a batch of pieces. This is the lever you can pull to reduce batch sizes, reduce inventory levels, reduce working capital, and help maximize profits.

To your specific comment, the difficulty lies in fulfillment. Making sure the robot picks up the right number of pieces which are unceremoniously ejected from the injection molder in no particular order. Having inventory of all the pieces people want - or having a relatively long lead time hoping you get enough demand to run batches on a make-to-order basis. SMED would make this a much more viable business model.

This article goes into more depth on the turnaround they went through.

https://www.theguardian.com/lifeandstyle/2017/jun/04/how-leg...

https://en.m.wikipedia.org/wiki/Single-minute_exchange_of_di...

https://en.m.wikipedia.org/wiki/Economic_order_quantity

Re: Brokering Bricks: The World of Lego Investing

#12
post #3
post #2

As a kid I adored Lego. I think fondly of all the time I spent playing with my collection and all the creations I made. As I entered my early teen years my collection had grown considerably and it was taking up a lot of space, and I was spending less and less time with Lego. I knew a younger kid down the block who was in the peak of his Lego phase and I donated my entire collection -- around five or so 30 gallon tras…

Or they can have a website where one can order a set and have a robot setup the kits from standard bricks. This should work for the majority of sets and would require a relatively small set of custom bricks.

They used to have this, not sure if they still do.

The problem is that some sets have custom parts that are no longer manufactured.

Re: Brokering Bricks: The World of Lego Investing

#13

Earlier quoted context omitted.

Current Technic is honestly pretty good, IMO.

Yeah, it's pretty good. I love Lego, it's still undoubtedly the best toy. But it's also way worse than late 90's Technic, which really felt focused on piece versatility above all else.

What kind of things could be done with those that can't be done now?

Re: Brokering Bricks: The World of Lego Investing

#14
post #13

Earlier quoted context omitted.

Yeah, it's pretty good. I love Lego, it's still undoubtedly the best toy. But it's also way worse than late 90's Technic, which really felt focused on piece versatility above all else.

What kind of things could be done with those that can't be done now?

I still have my 90’s Technic car with multiple gears and a working stickshift. Nowadays, the sets tend to have some set-specific pieces. Back then, no individual piece was anything nonstandard.

Re: Brokering Bricks: The World of Lego Investing

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Earlier quoted context omitted.

What kind of things could be done with those that can't be done now?

I still have my 90’s Technic car with multiple gears and a working stickshift. Nowadays, the sets tend to have some set-specific pieces. Back then, no individual piece was anything nonstandard.

Actually, they mostly stopped doing that a while ago. There's a new piece or two every year but it's 99.9% standard pieces with the occasional new colorization.

Re: Brokering Bricks: The World of Lego Investing

#17

Earlier quoted context omitted.

As an intermittent toy collector, I've had the same frustration with a lot of childhood favorites. But the nice thing about Lego is that it's...well, Lego. You can be just as creative and have just as much fun with new sets. If the only thing you want to do is build the same set from your childhood in exactly the same way, and then sit back and admire it, then yeah, unfortunately, you are kinda compelled to pay colle…

> You can be just as creative and have just as much fun with new sets. You absolutely cannot. Don't get me wrong, I love Lego to this day but late 90's Technic is unmatched in it's versatility by a looooong shot.

Did you perchance happen to be a kid in the late 90's?

Re: Brokering Bricks: The World of Lego Investing

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post #17

Earlier quoted context omitted.

> You can be just as creative and have just as much fun with new sets. You absolutely cannot. Don't get me wrong, I love Lego to this day but late 90's Technic is unmatched in it's versatility by a looooong shot.

Did you perchance happen to be a kid in the late 90's?

Yeah and I can afford way more Legos now, I still prefer the old school kind. Compare 42054 to 8480. They're both great sets for sure, but the shuttle pieces are more versatile in other builds.

Re: Brokering Bricks: The World of Lego Investing

#19
I’ve recently gotten back into wanting some Pirate Lego sets from when I was young, but to play with not as an investment. Purchasing used-but-complete sets are actually cheaper when adjusted for inflation than when new, at least if you put a little effort into shopping (eBay price alerts for example)

Re: Brokering Bricks: The World of Lego Investing

#20
post #13

Earlier quoted context omitted.

Yeah, it's pretty good. I love Lego, it's still undoubtedly the best toy. But it's also way worse than late 90's Technic, which really felt focused on piece versatility above all else.

What kind of things could be done with those that can't be done now?

Most Lego Technic pieces nowadays are missing the studs, this means construction is way more complex and less organic, explorative.
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