LEGO Viewpoints - 20160628

http://www.thewackyduo.com/2016/05/why-i-stop-buying-lego-for-investment.html

Happen to pop into AFOL group when someone accidently added me and this was in the front page. Yes, I'm no longer in the AFOL group as a member so I dont recieve updates on whats happening. But I believe everything happens for a reason. so perhaps i should share some views on this.

I must say, he does bring up alot of strong points. If i have read this in the earlier days of my collecting, it might have made some changes. Of course, i do not regret what i have collected so far, to me, they are still treasures. but perhaps i might not have over stretched myself like i had. Greed is my sin and i would have made an excellent Orange Lantern.

Do note that from his view point, he isnt discouraging ppl from investing but just stating why is it harder to invest.
It is too commercialise: Agree on this point. At the same time, its good for me. as sets that are unpopular will always go on clearance. clearance = cheap parts.
Sets are more expensive, making returns challenging: Disagree on this point. Making 10% profit off a $600 set is more than making 100% profit off a $5 set. If you havent guess which example i'm quoting, you are out of touch. To make the second example match the first in profit, you will need to deal with 10x more ppl, which will include low-ballers, pilots, picky scalpers.
Locally overprice: Disagree. The discrepancy between our prices and overseas is the reason why sellers are able to flourish. If they have the means or they fly often, they can profit by bringing sets back at low cost. at the same time, can afford to give a better discount.
Rare is a relative word: Agree. Its almost like trying to pick a 4D number. The worst part is, after you picked a winner, bros will come to ask you for bro price. 
Beware of scalpers: Disagree. Scalpers through buying up all the shelf stock will create an impression of product shortage. That itself will justify them selling it at RRP when they gotten it at a discounted price. How to counter this? Educate yourself. Though the time span of the product has changed, it will still go through the phrases which i have talked about before. Just get the item when it is in its wave phrase when waves after waves of the product will hit the shelves with no end to them. The wait will slowly die out when everyone has gotten thier sets.
Children are left out of the equation: Hard to make any comment on this. Too far into the future for me to see. i always believe that every generation will have its own idols, ideals and toys. whether your children will play LEGO is something totally out of your control.
The existence of replica: Agree. I myself do purchase some of these. but only when there is no LEGO-equivalent. Helps alot in covering Ironman's numerous suits. for parts wise, i still feel there is a long way to go for them to match LEGO. kekekeke. like in the KFC commercial, its just not LEGO. Some friend dont feel the same way and are switching.
The loss of LEGO trademark: Disagree. With the loss of the patent, LEGO will be pressed to keep thier edge. Quality should be the key but there has been a steady decline in it. In the past, we used to marvel at the strength of the person who can break a LEGO part during normal usage. now, all kinds of parts are breaking, especially reddish brown ones.
Box collectors: Disagree. These are the kind of collectors who spurs newbie collectors into a buying frenzy and after buying, what they can do is only sit on the boxes waiting for price to rise.
You only need one set: Agree. Anything more, you should have just bricklinked it. unless you are building an army of something. otherwise, building 1 set will be enough for skill gathering and stuff.
It is suppose to be a toy, not an investment: Disagree. Simply because of the price point. A modular set will easily take a tenth of your pay. 

Once upon a time, i had a conversation with "he who shall not be named". I believe that LEGO should be made as cheap as possible, everyone help one another to get better discounts (i do that myself, helping ppl get sets at a discounted price.), sharing information on sales, fight scalpers by putting a ceiling on the price on various selling channels, (which is what i do too.) How do you put a ceiling on the price? Well, when ppl do a search for the item, most of the time, he will pick the lowest priced seller. by putting in the discount price, you will ceiling it as prices higher will not be able to move. With easy access to LEGO, creativity will freely flourish.

"He who shall not be named" says let the free market do its work.

Off topic: Some will just say, Rek, you have the biggest bricklink store in Singapore (Rek's Store - 153,477) If you can just lower your price alot, you can help the creativity flourish greatly! 2 different issue, basically putting in ceilings does not cost me anything but effort (of course, there are buggers who ask you to buy and dont pick up that kind of nonsense.), but lowering price of my bricklink store will directly increase my cost, time and effort.

Today I realise that much of what i did was wrong and "He who shall not be named" had more sense in economics than i did. By keeping prices low, i have helped to cultivate the generation of scalpers, ungrateful buyers. in the long run, more harm came out of the motive to do good than good itself.