When I was younger, I loved to play with Lego.  I could amuse myself for hours on end.  Fast forward to today, and my roommates’ five year old is quickly developing the same fascination that I had.  I purchased him some Lego for Christmas, and a small box after Christmas.  The prices seemed somewhat expensive, but not terribly so.

Today, I browsed through the Lego aisle, and I was really taken aback by the prices.  It seems as if they have increased almost 20%!  Truly, I was floored.  I have always budgeted Lego out to be about ten cents per piece.  That leaves everyone a healthy profit margin.  They are plastic pieces, how much can they cost to make?  Today, working out the numbers it looks like the new sets are priced at twelve cents per piece!  Now, an extra couple of cents does not sound like a lot but multiply that by 500 or 1000 pieces.  I can see how some sets such as Star Wars or Indiana Jones may cost somewhat more due to royalties or licensing, but the brands that Lego develops themselves should not be priced as high.

If people think like I do when they buy Lego, brands like Mega Blox and K-Nex will flourish because they are completely compatible with the Lego bricks, and much cheaper as well.  I have picked up a couple of boxes of K-Nex and they are just as good as Lego.  That’s where my money will go in the future if Lego does not get its act together and keep the prices reasonable.