LEGO raises prices, citing supply chain issues

Inflation and supply chain shortages continue to impact every industry, from food to fuel, and now fun. LEGO announced in June it would be increasing prices on approximately a quarter of its stock currently on shelves.

Already, some of the most sought-after LEGO sets are seeing an increase in cost, some by nearly 25%. The LEGO ‘Home Alone’ set, which originally sold at retail for $250 according to The Verge, now sells for $300 on Barnes & Noble.

LEGO says due to the recent supply chains being impacted, the petroleum-based plastic that makes up their bricks are in high demand.

Despite the shortage, the company said it saw a growth in profits by 32% in 2021.

The company confirmed the increases would mostly target the most complex sets.

The cost of these toys is actually turning them into somewhat of a commodity. Experts even say in today’s economy, collecting LEGO is as lucrative as collecting gold.

A study published in 2020 found that LEGO sets can gain more value than stocks, bonds, gold and other traditional investments. 

Researchers found that LEGO sets from 1987 to 2015 appreciated in value by at least 11% each year. 

"Investors in LEGO generate high returns from reselling unpacked sets, particularly rare ones, which were produced in limited editions or a long time ago. Sets produced 20-30 years ago make LEGO fans nostalgic, and prices for them go through the roof. But despite the high profitability of LEGO sets on the secondary market in general, not all sets are equally successful, and one must be a real LEGO fan to sort out the market nuances and see the investment potential in a particular set," Victoria Dobrynskaya, one of the researchers, said.

 

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