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Subject: 
Re: Ideas and Suggestions for LEGO S@H
Newsgroups: 
lugnet.general
Date: 
Sat, 1 Oct 2005 15:32:29 GMT
Viewed: 
2874 times
  
In lugnet.general, Kelly McKiernan wrote:
   The LEGO Ambassadors have been asked to provide some suggestions to the LEGO Shop at Home people about what types of things we AFOLs would like to see offered or available from S@H.

My apologies for replying to my own previouse response. It may be too late to include this suggestion, but I thought I’d offer it again anyway.

I say “again” since this is actually something I posted nearly a year ago. It had sort of slipped my mind until just yesterday when again my co-workers began talking about our group order that has now become an annual event in our office. (In fact, this is our forth year.) And so people are already asking, “are you doing the LEGO order again this year?” One person has now twice reminded me to include her this year because for some reason she missed it last year. We’re definitely going to include her this year. :)

The idea seemed to get a lukewarm reception here as some people felt it was really only practical to have fans organize things on their own. However, I will state again that if companies such as Tupperware, Avon or Pampered Chef can run group catalog buys year after year after year, there must be something to it. And as I think I previously mentioned, this specific idea might not be right for LEGO. But I wanted them to perhaps think about it and see if a variation of it might be possible for LEGO products. I can only speak for myself and the people who participate in our group order, but I can tell you that everyone who’s involved gets very excited about seeing the catalog, placing the order and of course enjoying the day that the big boxes arrive! :)

So without further explanation, here is a reposting of my original message.

(The complete thread can be found here: http://news.lugnet.com/market/shopping/?n=11884)

++++++++++++++++++++++++++++++++++++++++++++++++

Anatomy of a Shop At Home group order

A few days ago, in this thread:

http://news.lugnet.com/market/shopping/?n=11832

I mentioned the large group order that we (my co-workers & I) do every year about this time. This was our third annual and largest order yet. I’m not sure how many other people do this in their office/workplace or how many are interested in how ours went, but I thought I’d post a few notes about it just in case.

Our order is compiled and submitted by one person (who is kind enough to let this sit on her credit card until mid next month). She emails anyone who might be interested and they stop by with their orders. It’s important to note that she is not a LEGO fan in any sense other than she enjoys buying it for her kids and sometimes helping them to build. She’s a typical parent of children who like LEGO bricks. In fact, I was the only one ordering bricks for me... all others were normal parents.

I do my best to help out by taking an actual printed copy of the Shop At Home catalog in to work and leaving it on my desk for everyone to see/use.

This year’s order, as noted above, was our largest yet. We had 10 people participate and in total (before tax) we bought more than $900 (in Canadian funds). But maybe a few people reading this are wondering, “what’s the big deal?” Here’s a few things that might help you understand why I think this type of activity is so great.

1) Everyone who ordered got free shipping, since we were well over the $99 minimum. This helps those people who wouldn’t have gotten free shipping since many of the individual orders were actually below that amount.

2) In total we ordered more than 20 Advent calendars. This was one of the items that sort of got people jazzed about this back in 2002 when we did our first order. Each year we order even more.

3) Everyone who ordered bulk packs got the 15% discount, since we ordered way over 15 items from that section. That includes people who ordered only 1 or 2 packs, so again this is a big incentive to join in our order.

I think it’s also worth noting that we know for certain that at least 6 or 7 of those people who ordered would have purchased little or no LEGO on their own since they don’t normally do so and some people just don’t change their habits.

So here’s the real point I’m trying to make with this posting. I *think* this type of program (bulk orders placed for a group by one representative customer) would be a positive thing for the LEGO company to implement. I hope someone is listening and sees the numbers above. We are just a small office... only about 44 people. That means nearly 25% of the people in our office participated in this order. Imagine if such an order were placed by a larger office or other workplace where you have many more potential customers.

Our little group buy is completely organized by us... or rather by my co-worker noted above. She has built an Excel spreadsheet that tracks everyone’s order and amount owing, with discounts and taxes included. She was able to balance her spreadsheet to the penny with the final order on the LEGO website. But what about people/offices who for whatever reason wouldn’t go about organizing such a thing? Should they be left out? Should those potential sales simply remain... potential?

From what I’ve seen in the last few years, working in an office environment, catalog sales programs (one person brings it in and places group orders) are very popular. People sometimes buy things they wouldn’t otherwise buy simply because it’s easy, it gets delivered, and hey... “everyone else is doing it.” :)

I can only hope that if this idea hasn’t been explored by LEGO that they will at least think about it. I just feel that it has the possibility of bringing in more sales; much of that in Shop At Home items where presumably the margins are a bit higher. Not to mention that our order is just one big order... not 10 little ones. Doesn’t that somehow save on packing/shipping costs? Maybe a little. But add up all those little amounts over many many orders and what do you get?

It seems to me that a simple change to the web order form (to allow for a larger group order, broken down by individual buyer but still calculated as one purchase) would be a good way to test the waters. Promote the fact that groups end up with bigger savings if they order this way. If that seems to work then explore the possibility of a more parent-friendly catalog that helps those people (who aren’t kids or AFOL’s) understand what they’re buying. And if all that goes well, why not even explore the idea of actual sales reps like those used by Pampered Chef or Tupperware? Build in some incentive (free stuff, discounts) for those folks to bring in more sales.

As noted above, 90% of those who ordered with us were just regular parents. This is not an AFOL targeted sales program I’m talking about, but rather one that tries to get the average parent buying more LEGO for their kids.

Am I looney? Is there a fundamental reason that even a small portion of these ideas wouldn’t work? Is our office unique? Do you do already do this with your co-workers? If not, would you now consider it for next Christmas, based on what you’ve read above?



Message is in Reply To:
  Re: Ideas and Suggestions for LEGO S@H
 
Hi there, (...) I was delighted to see this posting this morning. But I wanted to think about my response for a bit to make sure it didn't just end up as jibberish. :) One thing did cross my mind. From the description above I wasn't sure if you/they (...) (19 years ago, 24-Sep-05, to lugnet.general, FTX)

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