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Subject: 
What 5% ? (was Re: Fed UP!!!!!!!!)
Newsgroups: 
lugnet.color, lugnet.general, lugnet.lego
Date: 
Tue, 20 Jul 2004 16:28:10 GMT
Viewed: 
969 times
  
Justin Pratt wrote:

The problem is that you, Justin, are falling into a belief that plagues
business these days.  They think some of their customers don't matter.  You
think it is something that I have to get over (no, I didn't really take it as
a personal attack, so no hard feelings), but I think it is the other way
around.  It is something Lego has to get over if they are going to survive.

It's no secret that companies will put up with a certain amount of disgruntled
customers as long as they're small enough in number.  TLC will probably survive
with or without you, or any of us for that matter.

-Alfred

That's where you're wrong, Justin.  TLC is LOSING money.  Alienating up to 5% of
their customer base is NOT the way to tip the balance to MAKING money.


*****
One thing I would like clarified, that Jake nor anyone at TLC seems to have done -
are we 5% of the {customers} or 5% of TLC's {income}?
*****

The difference between the 2 could be quite large.  I am quite sure that if we are
5% of TLC's {customers}, that we would be more than 5% of their {income}, as most
AFOL's buy far more than a typical Lego parent in a year.  Any time I've seen a
parent buying Lego for a child, they're buying {one} set at a time.  Any time I've
run into an AFOL, they're buying 5, 10, 20 or more sets (and the AFOLs I've run into
in my area are not Lugnet regulars, either.  Lugnet regulars tend to buy even more).




FYI, this is sent to .general and .lego for the above clarification, and because
this specific post holds absolutely {no} color content.  It is a discussion of
customer base.


--
Tom Stangl
*http://www.vfaq.com/
*DSM Visual FAQ home
*http://www.vfaq.net/
*Prius Visual FAQ Home



Message has 1 Reply:
  Re: What 5% ? (was Re: Fed UP!!!!!!!!)
 
(...) Yes, they lost money in 2003. Yes, this is bad. No, AFOLs still don't count. From the 2003 Lego Annual Report: "At the end of 2004, it was decided to change the business strategy and set out a series of specific intiatives in order to ensure a (...) (20 years ago, 30-Jul-04, to lugnet.color, FTX)

Message is in Reply To:
  Re: Fed UP!!!!!!!!
 
(...) (Marshall Fields customer stuff snipped) There is a disconnect here. The AFOL segment is largely disconnected from the Lego-buying parent segment, even if there's overlap between the two groups (at 5%, there can only be so much overlap with (...) (20 years ago, 20-Jul-04, to lugnet.color, FTX)

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