LEGO has grown to be a common sight across the world and it is popular among kids and adults. The vast array of toys that the company produces remains top-class.
If are looking to join the LEGO family and become a LEGO Distributor, then there are a whole lot of things you will want to take into consideration before starting your business. Having your own LEGO store, however, is out of the question — at least for the foreseeable future.
Nevertheless, it is possible to start your own store or buy a franchise that’s focused on selling and distributing this beloved and famous brand.
You have to understand that LEGO runs its own retail stores all over the world, and this encompasses more than 100 LEGO stores that are situated all over the United States. Owing to this popularity and presence, it might be disappointing to realize that LEGO doesn’t offer franchises.
3 Ways to Become a Lego Reseller and Distributor
There are numerous ways to become a Lego reseller or distributor in the United States. They Include;
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Selling Lego without a wholesale account
It is very much possible to purchase LEGO products at retail prices, mark them up, and sell them. This can make it very challenging to make a profit unless you have a store in an area where LEGO is difficult to locate, and people don’t mind paying a little extra.
Aside from that, you can also source used LEGO toys from consumers and then resell them. Acquiring and reselling rare LEGO sets that have been discontinued is indeed a viable option to make money if you can find them at good prices and in excellent condition.
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Acquire a franchise
Just as was noted above, LEGO doesn’t offer franchises in the US; however, it doesn’t mean you can’t sell LEGO while obtaining the vital business support and brand recognition that you get by purchasing a Franchise.
In recent times, Bricks & Minifigs has gained popularity as a chain of stores that purchases and sells LEGO bricks and toys, both new and used, across the U.S. However, to purchase this franchise, you will be expected to put in an initial investment of around $108,500 and $276,400. This includes the initial $25,000 franchise fee plus:
- Computers and point-of-purchase systems
- Furniture, fixtures, and equipment
- Store property improvements
- Signage
- Grand opening advertising costs
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Become an online affiliate Lego store
As long as you have a website, it is possible to apply for Lego’s affiliate program. Howbeit, it doesn’t mean that you will sell LEGO directly from your website since the company still holds that privilege on its own website at LEGO.com. Your work will be to promote LEGO products, and once someone goes through your website to make a purchase, you will receive a commission.
Immediately after your application gets approved, LEGO will make available official banners, text, and unique product links to post on your website, and this will link buyers to the LEGO website. Aside from those, the company will also provide you with sales tracking and reporting tools coupled with exclusive product and promotion updates in its affiliate newsletter.
The company will handle and process all sales at the end of each month and will make sure its affiliates get their cut immediately.
Steps to Become a Lego Reseller and Distributor
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Research Which Sets You Want to Buy
Prior to making any financial investment, it is important you carry out extensive research. You have to understand that some genres and sets sell better than others, as such take your time to find out all you can regarding the market.
To ensure you remain current to cover all your bases, steadily visit sites dedicated to buying and reselling sets. Aside from that, don’t forget that Lego is under no obligation to discontinue any of their sets; as such carrying out extensive research prior to investing is really a must.
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Put Together A Plan For Storing The Sets
In this line of business, you will want to store your collections appropriately to ensure they remain in pristine condition.
If you are looking to resell a set, then ensure that the box remains well closed and stored out of reach of people who may want to open it. Collectors and investors who are in love with their collections might want to store them in temperature-controlled areas.
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Identify Your Niche
One thing you have to realize in this line of business is the fact that there are numerous Lego themes, coupled with a whole lot of subthemes of particular sealed sets. It is indeed possible to sell specific miniature figurines, like the Harry Potter miniature figurines.
Make sure to go with a niche that resonates with your interest and gain as much knowledge as you can about the niche you pick. Also make sure you comprehend this niche’s history, popularity, and expected return on investment.
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Start Buying And Selling
When looking to become a Lego reseller or distributor, you don’t really need to purchase second-hand or from other people.
It is still very much possible to purchase incomplete Lego sets and re-arrange them yourself by color or theme. In this line of business, Complete is known to fetch more money and you will get customers easily as most first-time Lego collectors are known to prefer full sets.
A complete Lego set tends to encompass all its original parts, its box, instructions, parts bag, sticker sheets, and mini figurines.
Cost to Become a Lego Reseller and Distributor
The cost to become a Lego reseller and distributor will depend on a wide range of factors such as your location, the size of your business, as well as any precise requirements as stipulated by Lego or their authorized distributors. Aside from that, it is imperative to take into account the expenses that come with purchasing inventory, storage, shipping, marketing, and maybe acquiring the necessary licenses or permits.
Nevertheless, always try to reach out to Lego directly or their authorized distributors to ensure you obtain the appropriate information on costs as well as other necessary requirements.
Fees Associated With Becoming a Lego Reseller and Distributor
Just as with the costs that come with becoming a Lego Reseller and Distributor, keep in mind that the fees associated with becoming a Lego reseller and distributor will also depend on factors such as location, size of business, and the type of partnership.
As such, it is advised you reach out to Lego’s official distributor network or contact their customer service to ensure you obtain the right information on fees and requirements.
Requirements to Become a Lego Reseller and Distributor
To become a Lego reseller and distributor, you will be required to register and establish a legal business entity, obtain an agreement with Lego’s licensed distributor, put together a comprehensive business plan, have substantial capital for inventory and operations,
Establish storage facilities, put out a well organized online platform, design result oriented marketing strategies, stay in conformance to legal obligations and permits, provide top class customer service, and possess a valid insight when it comes to Lego products to ensure you can cater to the needs of your clients and maintain a positive reputation.
Conclusion
Reselling Lego is a viable business for individuals who love the toy. Make sure you’re knowledgeable about the market and understand your intended demographic by doing your research. Ensure you understand your goals and business model as well as your niche of choice, particularly if this is your first time.
Try as much as possible to have fun with the whole endeavor and understand that it always takes some time before businesses can start bringing in the money.