The Cost of Doing Business
This past December, I joined my friends Jeff and Olivia at a Richmond area Toys R Us. They were on a mission to spend nearly four thousand dollars of donated money on new toys that they would then hand over to Toys for Tots. I jumped at the opportunity to join them. Buying toys for kids is a ton of fun, and doing so with someone else’s money is even better.
The checkout counter was reserved for the large group that assembled there on that sunny Saturday morning. More than 8 carts full of toys lined up for checkout. When we got to the counter, my friends noticed that we were not yet close to our spending limit, so they issued some of us back to the store to acquire more toys.
It hit me quickly that there were no LEGO products in the carts. Not a single LEGO toy was among the hundreds of boxes stacked on the checkout counter. I had to do something to represent Brickworkz. Off to the LEGO aisle I went, looking to get as many LEGO sets as I could with the limit they provided me.
I was pretty disappointed.
It didn’t seem like- even with $100- it didn’t seem like I could buy too many sets. Most of the LEGO kits were priced at around $18-25. My goal was to get as many LEGO kits as I could to spread the LEGO love, and at that moment, I wasn’t even feeling the love.
I understand that there is a price for quality. LEGO continually astounds engineers with their high standards of quality during the manufacturing process. Each brick is simple injection-mold technology, but to a very precise specification. They come out of the plants strong and durable, brightly-colored and always just right.
In creating and selling custom LEGO mosaics, I certainly know that there is a price for quality. I face that every day when acquiring supplies. My bulk orders of LEGO parts are often purchased at prices that would shock most people. “Really? A single LEGO brick costs THAT much?” Well, simply put- yes. The LEGO Company has assigned a price to these parts, parts that cost them hundredths of a penny.
I have contacted LEGO about the need to reduce prices in bulk orders. I personally spoke with the head of Marketing of the LEGO Digital Designer program, as well as other executives at LEGO corporate in Billund, Denmark. They understood my concern, and directed me to their site, where each brick is seven cents each.
As much as I love LEGO, I do worry about their future. Even with such high-quality parts, can they really afford to lose customers over their highly-inflated costs?
This week in 2006, I decided to take what was a hobby (designing and creating artwork with LEGO) and incorporate the process into a business. Brickworkz LLC was born on a Wednesday with a few thousand dollars and a gallery deadline in June.