📈 Growth & Marketing

Use Lego's Barbell Pricing to Save Your Margins

Lego just hit record revenues by ignoring the middle. Here is how your shop can use barbell pricing to capture high and low-end spenders.

By MyBizNerd Team · Published

Key Takeaways

  • Adopt a barbell strategy by offering both a low-friction entry-level product and a high-margin premium service to capture two distinct customer segments.
  • Identify your 'Dead Zone' by reviewing sales data to see which middle-tier products are currently seeing the highest customer churn or price resistance.
  • Increase premium pricing by 15% or more if you provide specialized expertise, as high-end buyers prioritize certainty over cost during economic shifts.
  • Review the FTC guidelines on price advertising to ensure your new tiered structure stays compliant with consumer protection laws.

Lego just reported record-breaking first-half revenue for 2026, and the reason is a direct lesson for every service shop and retailer in the U.S. According to CNBC, the company saw massive growth by leaning into two extremes: $20 impulse buys and $500 collectors' sets. They're flourishing because they stopped obsessing over the middle.

When inflation bites or interest rates fluctuate, the middle class of your customer base usually pulls back first. They stop buying the 'pretty good' $150 service and either hunt for a bargain or save up for the premium experience. If your pricing sits entirely in that squeezed middle, you're fighting for a shrinking pool of dollars.

Say you run a residential landscaping business.

You currently charge $250 for a standard monthly maintenance package. A barbell approach means you add a $40 'mow-only' basic option for the budget-conscious and a $1,200 'estate concierge' package that includes fertilization, pest control, and seasonal planting for the high-end client. You trade the low-margin middle for high-volume basics and high-profit luxury.

How to build your barbell this week

  1. Cut a 'No-Frills' Version of Your Lead Product. Look at your most popular service. Strip away every luxury, every extra minute of consultation, and every premium material. Create a version that solves the immediate problem at the lowest possible price point. This keeps your brand in the customer's wallet so they don't jump to a competitor when cash is tight. The SBA provides resources on how to position these value-tier offerings without cannibalizing your brand.

  2. Inventory Your 'Expert-Only' Upsells. High-end buyers are less sensitive to interest rate hikes than the general public. If you're an HVAC pro, this means offering the $15,000 high-efficiency system with a 10-year white-glove warranty instead of just the $7,000 standard unit. These clients are buying peace of mind and long-term savings. If you aren't offering a tier that feels 'exclusive' or 'complete,' you're leaving money on the table.

  3. Audit Your Price Communication. You must ensure your marketing clearly distinguishes between these tiers to avoid consumer confusion. The Federal Trade Commission (FTC) monitors truth-in-advertising to ensure businesses aren't using bait-and-switch tactics. Be transparent about what's, and isn't, included in your budget tier versus your premium tier.

Why the middle market is a trap right now

When you sell to the middle, you get the worst of both worlds. You face the price sensitivity of the budget shopper but have the high overhead of the premium provider. Lego's CEO noted that their growth came from being 'relevant' across all price points. For a small business, relevance means having an answer for the person who has $50 today and the person who has $5,000.

Is your current 'Best Seller' actually hurting your profit?

Take a look at your books for the last 90 days. Which products have the highest volume but the lowest net profit? Usually, these are your middle-tier items. They take up all your time but don't provide the cash flow needed to weather a downturn. By shifting to a barbell model, you use the low-end products to pay for your customer acquisition and the high-end products to build your actual wealth.

How much of your current revenue comes from customers who would leave if you raised prices by 10 percent?

Related free tool

Break-Even Calculator — Find the number of customers you need to stop losing money. Free, no signup to start.

📋 Disclaimer

This article is for informational purposes only and does not constitute legal, tax, financial, or professional advice. Laws and regulations change frequently, and the information presented may not reflect the most current legal developments. Always consult with a qualified professional (CPA, attorney, financial advisor) before making business decisions based on this content. MyBizNerd may receive compensation through affiliate links, but this never influences our recommendations.