Subject:
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Re: How to maximize 90-piece bags?
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Newsgroups:
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lugnet.market.theory
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Date:
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Tue, 14 Nov 2000 03:22:50 GMT
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Viewed:
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2642 times
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Jon Kozan wrote:
> From an individual's perspective, this would certainly appear as simple as you
> describe it. But, from an accounting system or MRP systems perspective, this is
> a ROYAL NIGHTMARE.
>
> Look at it this way.
> (LEGO before Mosaic)
> My computer system thinks that I get paid for every set that I sell.
> If I sell 20 of set X, I get paid 20*X's price.
> I know instantly what I've sold, and what to remove from inventory accounts.
> Furthermore, life is predictable, I can forecast my demand at the set level and
> capture the inventory useage and production requirements at that same level.
>
> But wait.
> (LEGO with MOSAIC)
> I now don't know what I've sold when I sell something.
> I may have sold 20 of this bag, and 3 of that...(23 bags)
> Or maybe I've sold 26 bags.
> Which is it?
> What did that set cost me to make?
> 26 bags or 23?
> What return do I expect to make on this thing?
> Furthermore, How do I predict it?
> I now have to forecast at one level, and model a forecast at another level, due
> to another level of variation I've just introduced.
I bet they've forecast based on 25 bags. True, many of us will optimize
our pictures to get 26 bags, but I bet even with that concerted effort,
the difference in margin will be minimal.
> More issues arise with customized instructions.
> Packaging?
I thought I saw a picture of what someone got, and that it was a "set"
box filled with the bags and the instructions. Doesn't sound overly
complex.
> Quality?
Quality of what? What I care about is the quality of the components, why
should they be any different quality than the bricks in any other set.
> And a HUGE issue arises with pricing.
> How do I price this thing? especially if I want to sell 90 piece bags at some
> point.
> (What's up with 90 anyway? We'll also have to make 100 piece bags, since
> nothing else is 90ish)
>
> With 26 bags potentially per set, plus border ($3.50), plus brick
> remover($2.50), plus baseplate ($10), Plus box, and instructions...
> That's about $0.50 per bag.
So they're gving you a discount for buying a set. The brick remover for
$2.50 is ludicrous (except that what that price really mostly represents
is the cost to have such a thing orderable as potentially the only thing
someone orders). Why 90? Probably because that was an optimal number in
an analysis of pictures. 100 would probably give too much overage. If
they sell 1x1 plates as bulk packs, my guess is that you'll get 90
because there is no good reason to have a different number. Why pick
100? Because it's a convenient round number. If you have a good reason
to pick another number, why not.
> THEN I JUST GOT THIS:
> Dear LEGO® Shop at Home Customer,
> Due to a technical problem, your LEGO Mosaic set was shipped with an
> incomplete assortment of building elements. We have repaired this
> problem and identified the bricks you are missing. These are now being
> prepared for immediate shipment to you.
>
> We appreciate your patience in this matter and apologize for any
> inconvenience it may have caused. The elements you need to complete your
> Mosaic should arrive shortly, and we hope you enjoy building and
> displaying your LEGO Mosaic image!
>
> Sincerely,
> Sharon
> LEGO Shop At Home Customer Service
So they had some problems with the startup. What percentage of new
product roll outs go off without any glitches?
Frank
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