Subject:
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bulks and trees and some new stuff on its way
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Newsgroups:
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lugnet.lego.direct
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Date:
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Mon, 17 Dec 2001 19:49:10 GMT
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OK, in this message I'll tackle some of the questions (as best I can) that
have arisen recently regarding our bulk program. And I'll toss in a couple
of other items of interest at the end (no scrolling ahead, now...).
Let me say first that our bulk program is, of course, a relatively new
program (as is nearly everything we have been doing in LEGO Direct). And we
treat every program, every product we launch as a work-in-progress. That
means that most aspects of any of our programs -- including selection of
items, pricing, package design, even distribution strategy -- are subject to
change. This is true as well for the bulk program.
For example: pricing. We know the pricing structure for bulks is not
perfect. But it is naturally easier to lower prices than to raise them. (How
would people have felt if we had launched a bulk program and discovered we
had *underpriced* the offering and needed to raise prices to keep the
program alive? Not too happy, I would think.) We started at a level of
pricing and elements per bag that we felt was appropriate given such
variables as past history with accessory items and certain other input --
for example, demand recorded by our consumer services group as well as other
consumer data. We knew that prices were likely not right, but we needed to
test the market to see what changes were necessary. So we have been tracking
bulk sales and purchase behavior over the year in order to give us an
indication of how we could best adjust our pricing structure for the coming
year (we needed a significant pool of sales data, and most of our sales
happen in the last part of the year -- otherwise we would have implemented
changes sooner). And I am pleased to tell you that beginning with the
January LEGO Shop At Home catalog (and online as well) we will offer
discounts on multiple bulk item purchases: 5% off any 5 bags, 10% off any 10
bags, and 15% off any 15 bags (or more). We'll see how this goes, and then
offer additional levels of discount if appropriate.
To those who believe that "true" bulk sales can only be numbered in the
thousands of elements, I must respond that really, such sales represent only
the smallest of fractions of our sales base for "loose" elements. Such
buyers are of course out there -- there are many of them here on LUGNET,
which may give the impression that those who desire elements in packs of
1000s are more numerous than is actually the case -- and there are of course
venues such as Brickbay which cater more specifically to this market. But
the number of bulk transactions on Brickbay pales alongside what we do
through LEGO Shop At Home. And priority must first go to what our sales and
other factual data indicate to be the needs of the largest number of
consumers at present. Nevertheless, we do recognize the "ultrabulk" market
and we hope to implement further discounts for such buyers sometime in the
next year.
The colors and elements we select are based (again) on historical data as
well as other information. We try to work out a schedule that allows us to
introduce new elements and colors while maintaining the maximum number of
"older" bulks on offer -- as we are limited (for economic and inventory
managment reasons) in the number of elements that we can have in active
production at any given time (active production means that we can reorder if
we run out). Some elements are simpler to manufacture than others, but we
still must wait our turn in the manufacturing queue -- and, of course,
priority goes to manufacturing elements for sets. Other elements require a
bit of planning -- such as securing the old molds for the cypress trees
which were just reintroduced. And sometimes we get lucky and can seize an
opportunity -- such as with the sand red bricks -- where we can "tag along"
on current production of elements and colors we feel (rather than know
precisely) *might* have value. (And indeed, sand red bricks have been quite
popular.)
We often end up adjusting and readjusting our bulk selections based on
manufacturing and packaging opportunities and limitations. Consequently, I
can't really say exactly what we'll be offering or precisely when -- I don't
want to make any promises that circumstances might force us (unwillingly) to
break. That said, do I think you'll see a bigger selection of (for example,
just plucking an example out of the air...) gray elements next year? I would
think so -- we hope to make this so. But no promises.... We'll make
announcements of upcoming offerings as soon as we have absolute confirmation
that we'll be bringing them out.
Next issue: cypress trees. The trees are made of precisely the same material
that we have used in the past; and yes, it is indeed a softer and more
pliable material than found in the basic brick. In fact, we are using the
same molds (we had to freshen them to get more production out of them) that
were last used for these elements. So there is nothing about the
*production* of these elements that has changed. The *packaging* of the
trees is of course different -- we have packed the trees in bags (as opposed
to their inclusion in a set or as a boxed accessory as in the past). It is
our supposition that as the material is indeed softer, and the trees are
packed in bags (not boxes) the likelihood of "squeezing" the elements during
transport (either to our fulfillment facilities or to you) is increased --
thus causing the bending that some of you have experienced. It appears that
the instances of such bending have been very few; and I am told that the
trees should bend back with a little effort. We apologize for this problem
-- but you should understand that it is by packaging the trees in this
manner that we have been able to deliver them at what we felt was a very
attractive cost; to add cardboard packaging would likely have forced us to
incur additional costs in packing and package design. So it was a
compromise, but one we felt was appropriate.
Last bit: a couple of announcements.... First, yes, it's true that a couple
of our sculptures are no longer available through LEGO Shop At Home. As it
happened, the sales of these items has been so great the past few weeks that
we have depleted our stocks. We were not planning on re-manufacturing the
Statue of Liberty or the Dragon, but given the demand we are looking at the
cost-effectiveness of going back into production. There is no guarantee that
we will do this, but we will do our best. (As some have noted, certain
sculptures were also available through toysrus.com, and we hope to make
items which have previously been LEGO Shop At Home exclusives available on
retail shelves next year. But that's really not up to us -- we can't *make*
retailers take anything; they have to *want* to put it on their shelves.)
But as "old" items disappear, new ones appear -- or reappear, as the case
may be. And I'm pleased to inform you that Fort Legoredo will once again be
offered, as well as a couple of other items from the old Western/Wild West
assortment, the Sheriff's Office and the Large Indian Camp. Expect to see
them online this week, and in the January LEGO Shop At Home catalog (and
yes, before anyone asks, they'll be available in all LSAH markets...). And
the Millenium Falcon, which by all accounts has evaporated from the shelves
(it was in fact discontinued) will also return in early spring exclusively
through LSAH.
And we have a very exciting 2002 planned for new sculptures, Legends, and
the like. So there's a lot more to look forward to....
I'll try to make another post or two before then New Year (or at least by
the first week in January), particularly regarding ways in which we can
better interact with the community-at-large (and that includes the role of
LEGO.com).
Until then, Play Well.
Best Regards,
-- Brad
Brad Justus
Senior Vice President, LEGO Direct
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Message has 19 Replies:
 | | Re: bulks and trees and some new stuff on its way
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| "Brad Justus" <legodirect@lego.com> wrote in message news:GoI71y.AqA@lugnet.com... Hi Brad - (snipped much of the message...) (...) only (...) course (...) and (...) Glad to hear that. (...) would (...) confirmation (...) Oooo cool! :-) I know, no (...) (23 years ago, 17-Dec-01, to lugnet.lego.direct)
| | | Re: bulks and trees and some new stuff on its way
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| (...) Well there you go, Richard. If you don't believe it coming from me, perhaps you will believe it coming straight from the horse's mouth? (...) This is a nice surprise. BTW to Brad and others at LEGO Direct, even though some of us aren't as (...) (23 years ago, 17-Dec-01, to lugnet.lego.direct)
| | | Re: bulks and trees and some new stuff on its way
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| (...) Wow. Brad, You say a lot in your post! Most (if not all) of what you wrote is welcome news indeed. Regarding promises (above), I just want to say that your words are encouraging. And by making it clear why some things may or may not occur you (...) (23 years ago, 17-Dec-01, to lugnet.lego.direct)
| | | Re: bulks and trees and some new stuff on its way
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| (...) This sounds like a decent start. Something similar was in place during the first few months of the bulk program so you probably have some idea as to how well that works. (...) One way to deal with true bulk is to try and find a way to make it (...) (23 years ago, 17-Dec-01, to lugnet.lego.direct)
| | | Re: bulks and trees and some new stuff on its way
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| Once again, Lego listens and responds. Brad, I want to thank you for interacting with us through LugNet and through the other channels the LSAH has started doing. It was a long time in coming, but you guys are really putting forth a lot of effort (...) (23 years ago, 18-Dec-01, to lugnet.lego.direct)
| | | Re: bulks and trees and some new stuff on its way
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| [snip] (...) So if enough people buy 15 or more then it could be worthwhile (read profitable) to add like 20-20%, 25-25% or something. Well I will definately be voting with my dollars. :-) (...) Woo Hoo! [snip] (...) Well it seems as some of us (...) (23 years ago, 18-Dec-01, to lugnet.lego.direct)
| | | Re: bulks and trees and some new stuff on its way
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| (...) Yes please! Hmmm I wonder how much discount we might get for purchasing 100 bulk items...100%??? (although I would settle for 95 ;-) Keep up the good work Brad et al, I really appreciate your efforts and especially your open way of (...) (23 years ago, 18-Dec-01, to lugnet.lego.direct)
| | | Re: bulks and trees and some new stuff on its way
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| In lugnet.lego.direct, Brad Justus writes: <snip> Brad, as somebody who has a degree in manufacturing engineering (with a minor in business), a big interest in process engineering and 2-3 years experience in injection molding...Belive me, I (...) (23 years ago, 18-Dec-01, to lugnet.lego.direct)
| | | Re: bulks and trees and some new stuff on its way
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| Wow! This sounds like a step in the right direction. Such good news for Christmas is almost as welcome as a nice big pile of brand new parts under the tree :) I have one question arising from the information presented however. Since the current bulk (...) (23 years ago, 18-Dec-01, to lugnet.lego.direct)
| | | Re: bulks and trees and some new stuff on its way
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| THanks Brad for answering a lot of questions. Though one thing I am wondering, and I hope you can answer, what was the logic behind discontinuing the Statue of Liberty and Dragon sculptures right before the Holidays? I would think they would last (...) (23 years ago, 18-Dec-01, to lugnet.lego.direct)
| | | Re: bulks and trees and some new stuff on its way
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| Season's Greetings- (...) Well, "bulk" certainly isn't "2" (check the catalog for a number of items that come "2" in a "bulk" pack). Of course it's thousands. The big blue tub of 1200 bricks for $20 full retail, no matter how you slice and dice it, (...) (23 years ago, 18-Dec-01, to lugnet.lego.direct)
| | | Re: bulks and trees and some new stuff on its way
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| In lugnet.lego.direct, Brad Justus writes: [snipped mega-good news] ... (...) ... [snipped some more] Thank you Brad. Everything else has already been said here, so I'll be brief. The above statement makes me glow inside and my hand already moves (...) (23 years ago, 18-Dec-01, to lugnet.lego.direct)
| | | Re: bulks and trees and some new stuff on its way
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| (...) Woohoo! This is great news! Now, if only you'd offer the absolutly necessary Gray 1x3 brick to your line-up, I'd be extremely satisfied. :) (...) That would be great! Hopefully plates would be included, but I'd be happy with just 1x3 bricks. (...) (23 years ago, 23-Dec-01, to lugnet.lego.direct)
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