3 ms·
The average price per gram chart is interesting, as it shows price fluctuated quite wildly 1980-1995 and then smoothing out to a much more stable curve 1996 onw
by rhplus 14y ago
The average price per gram chart is interesting, as it shows price fluctuated quite wildly 1980-1995 and then smoothing out to a much more stable curve 1996 onwards.
http://therealityprose.files.wordpress.com/2013/01/pricepergram2.gif http://therealityprose.files.wordpress.com/2013/01/priceperg...
I have some possible ideas:
1) There's more data in recent years, so the smoothness is just reflecting less variance in the data
2) The author didn't consider currency exchange rates when most production was done in Denmark
3) LEGO got better at managing shock from fluctuations in supply costs (i.e. buying futures in petroleum)
4) LEGO got better at managing production costs with more larger, cheaper factories (central Europe, Mexico)
5) It's harder for the supplier to experiment wildly with retail costs because everyone (distributor, retailer, consumer) has access to year-on-year comparison information now (no need to look up last year's prices in a huge catalog)