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I know that LEGO bricks approximately sell for 10 cents per piece but what does it cost to make an average brick?

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I found that looking to the website http://www.custompartnet.com/estimate/injection-molding/ is a great help to figuring out how much stuff costs.

Image of Estimator

I started with a quantity of 1 million, as Lego would make bricks in huge quantities.
Small envelope of around an inch for the standard brick, .1 in thickness on the top is the most, looked up the volume online, and chose the other options logically.

Material and Production is all we care about, so...

2 cents + 3.3 Cents = ~5 cents per brick!

It might even be a little cheaper assuming they produce in China.

2

There is no official production cost information that I'm aware of.

There's cost related to research, set design, mold making, the actual plastic pellets, packaging, shipping, marketing. Then there's money coming in from video games, and they might actually lose money on the theme parks. Some of the inventory is sold at discounted prices, some might be stuck on shelves or warehouses for years.

In 2012, 45.7 billion LEGO bricks were produced at a rate of 5.2 million per hour.

http://education.lego.com/nl-be/about-us/lego-education-worldwide/lego-facts

The year's operating profit increased to GBP 866 million. The year's net profit increased to GBP 611 million The revenue increased to GBP 2,549 million.

https://wwwsecure.lego.com/en-GB/aboutus/news-room/2013/february/annual-result-2012

Now that's 2549/45700 = 0.055 GBP = 0.088 USD per sold piece. Profit is a third of that, expenses 2 thirds. Assume my math is correct so an average brick production cost at 6 cents for 2012 ? Should be interesting to check this for more that 1 year.

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I was also wondering that and searching internet about it and I found a detailed research about the LEGO prices in http://www.realityprose.com/what-happened-with-lego/

It is seen that price per brick is variable but e.g. in 2011 it is said that it was like 12 cents.

However, there is more detailed and interesting information at the link above.

  • That article is really informative, but he was analyzing retail prices, not cost of production. It does provide a nice sanity check for Mason's answer. – chicks Jun 29 '16 at 11:56
0

You can buy a bag of 1.000 LEGO bricks for 50€.

If you do the maths, they must produce under 5 cents/unit in order to sell those bags on profit.

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