DerBum wrote:I was under the opinion that most of the online PAB pieces were left over from production runs of standard sets.
Well-- I think it's the same idea, with a different slant to it. I think it's more along the lines of:
"We have to make part X for sets A, B, and C. We need 200,000 of them for set A, 350,000 for set B, and 250,000 for set C. That means we need to do a production run of at least 800,000 elements. However, while we're at it, let's add an additional 200,000 for PAB, and make it the run a grand total of 1,000,000."
I don't think it that it's filled via excess leftovers-- that would be more like:
"Well, we needed a run of 800,000 of part X, and we wound up with 850,000. I don't know what we'll do with that excess 50,000, so let's put it into PAB."
If that were the case, I think you'd see virtually every element that LEGO makes appear on PAB until the stock ran out. But I don't think that's what happens.
DerBum wrote:This would explain why many pieces were available in sets from discontinued lines and why some pieces go out of stock and are not available again (in some cases even basic bricks or plates).
That's exactly correct. LEGO gets that extra (say) 200,000 part run for PAB, and it just sits there until it gets too low, at which point they remove it from PAB. The fact that so many are still hanging around is probably a testament to how well they're selling (IE, they're not selling well!)
DerBum wrote:I doubt that TLG makes special runs only for online PAB and they would either be warehousing these pieces, throwing them away, or selling them through PAB (which is the only way to make money back off of them).
For "core" elements, like red 2x4 bricks, LEGO will ALWAYS make sure that PAB is fully stocked. There are certain elements that LEGO simply needs to offer through PAB. So, whenever LEGO does runs of 2x4 bricks, I would guess they'd take an inventory of the PAB selection, and "top off". However, for other elements, I certainly don't think LEGO would make special runs just for PAB. Setting up a production run is a large cost, so I would expect that PAB simply piggybacks on existing part runs.
DerBum wrote:Even if a picker takes their time finding the pieces in what must be a limited size warehouse which (must be fairly well organized) the cost does not justify the amount of individual time the employee uses. I suppose I can understand the $10.00 premium attached to a custom box and instructions,
I'd guess it'd take your average person around 15 - 20 minutes to pick elements for an order, which probably puts the actual person *picking* cost somewhere around $1.50 and $2.00 extra. But let's not forget that it's not JUST the picking cost. It's costing extra because:
1) People are being paid to pick parts (this also involves turnover, training, management, facilities, etc)
2) PAB elements are stored "indefinitely". That is, it's unknown whether or not a particular PAB element will ever sell, so it can sit there on a shelf, unbought for a long time.
3) There's maintenance on the web system needed to submit and process orders, as well as track inventories
4) There's overhead on developing software and interfaces for users to submit models, etc.
5) There's a custom box printed for each order in DBM
6) There's a set of custom instructions printed for each order in DBM.
7) There's additional staff that have to individually process mailing out orders (that's higher than sending out one palette of 1000 sets to a single store, it's sending 1000 sets to 1000 different addresses).
8) There's maintenance required to re-stock and evaluate inventories, including ordering more parts, keeping the system organized, etc.
9) LEGO needs to make profit-- they can't just break even.
But, even with all that said, we're still missing the REAL reason. The REAL reason isn't that PAB are so much more expensive than the cost of a LEGO brick-- it seems expensive because boxed LEGO sets are GROSSLY cheap. And that's because of the MASSIVE quantities that LEGO makes of normal boxed sets, where it can afford to sell "normal" LEGO at ludicrously low prices around $.10 per piece.
Unfortunately, that gets you, the consumer, into the mindset that ALL of the bricks LEGO produces should be similarly dirt cheap at $.10 per piece-- but that's simply not true.
DerBum wrote:but it only makes fincial sense if the PAB prices are closer to the $0.10/piece price in a normal set. As it is 4 pieces averages $1.00 in most sets containing minifigures through PAB... that too rich for my blood.
I think that's the story for most AFOLs. Buying from PAB online doesn't make sense for us. But then again, it's not MEANT for us. It's meant for kids, and it's meant for that "special occasion" purchase where you want it to look like you designed a LEGO set. It's not meant for bulk purchasing.
In the meantime, we have FANTASTIC alternatives for AFOL purchasing-- LUGBULK and BrickLink. There's no way LEGO will ever compete with BrickLink (especially in terms of rarer parts), and there's no way they could make LUGBULK open to the general public. PAB and DBM simply aren't where you should go looking to make your purchases if you're looking to get a great deal.
DaveE