That you personally would prefer lower prices does not mean they "should" be lower. Those lower costs of production, to Lego company, "should" mean higher profits, not lower prices, and again--good for them!
The risk Lego faces is that they don't actually have a quality moat any longer. You can get non-lego sets with no stickers, plenty of prints, LED lighting, at a cheaper price, and with the exact same piece quality. I purchased this set: https://www.lumibricks.com/collections/steampunk-world/produ... over Christmas, and I paid $105 because it was on sale. The pieces were indistinguishable from Lego in quality, and the lights and lack of stickers was a quality increase from what Lego offers.
What moat Lego has is: brand recognition and licenses. Which aren't nothing, but don't offer much protection.
Lumibricks seems like a promising brand, but I've never heard of them, possibly because they don't spend as much on marketing as lego. And if they did spend more in order to compete with Lego, they might need to increase price!
It’s a newer brand—they changed their name to it some time last year. But they seemed to spend a lot on advertising last Christmas—at least on YouTube, it seemed like tons of reviewers were talking about their sets. That’s how I found out about them, at any rate. And I’ll say—the one I got came together nicely, and looks great. The tons of lights are just, really neat.
> when I hear "lego knockoff" I think of the shitty ones, because I've never seen a Lego knockoff that wasn't shitty.
The cheap-o ones you get like at the dollar store, absolutely. But Chinese manufacturers have been making good quality knockoffs for a while. A decade at least? I bought my first knock-off technic set around 10 years ago, and it was 90% the quality of Lego at 25% the price. But the quality has only gotten better since, and is now totally on par with Lego. Admittedly, the price has gone up, too.
It is, absolutely, but it’s a lot more shallow a moat than having a product quality moat.
> Lego prices will drop as soon as they are forced to by competition, and not before, and this is fine.
I agree, they’ll survive quite well. But the large profit margin they’ve grown accustomed to might disappear, and that probably doesn’t bode well for their management.
And heck, maybe they’ll stop shipping stickers on expensive sets, too. That would be nice.
Not to mention sets that indeed just feel like a ripoff, like the pyramid of giza which costs $130 and is actually just half of a pyramid, but the backside of the model has slots that let you connect it with another half if you buy two of them. And they even admit in the marketing it's an incomplete product with "Complete the pyramid - This model comes with clear instructions and can be connected to a second model (sold separately) to create a full pyramid", of course only visible after scrolling or looking at more product pictures.
