Subject:
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Re: What 5% ? (was Re: Fed UP!!!!!!!!)
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Newsgroups:
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lugnet.color
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Date:
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Fri, 30 Jul 2004 16:11:45 GMT
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Viewed:
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1641 times
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In lugnet.color, Thomas Stangl wrote:
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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.
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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 stable platform for the
Company’s development.
The successful implementation of these intiatives is crucial for LEGO Company to
ensure profitable growth and, at the same time, uphold its strong global brand
position among families with children.” (emphasis mine)
Families with children. That might include some AFOLs, but again the overlap is
going to be not much.
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*****
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?
*****
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Either way AFOLs are still a tiny minority.
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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).
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AFOLs are prone to finding good deals at clearance prices, such as when Wal-Mart
or Target start dumping last year’s unsold models to make room for the new sets.
That kind of buying doesn’t help TLC’s balance sheet, although there’s
absolutely nothing wrong with seeking out those kind of bargains. The 20+ sets
guys are often the ones getting a fire-sale deal.
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Message has 1 Reply:
 | | Re: What 5% ? (was Re: Fed UP!!!!!!!!)
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| (...) *Either* way? Now that's just silly. If AFOL's were 5% of the customers (granted, they aren't), and your typical AFOL buys 20 times as much annually as a typical child's parents (not an overly bad estimate, I think), then we're about 51% of (...) (20 years ago, 31-Jul-04, to lugnet.color)
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Message is in Reply To:
| | What 5% ? (was Re: Fed UP!!!!!!!!)
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| (...) 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 (...) (20 years ago, 20-Jul-04, to lugnet.color, lugnet.general, lugnet.lego)
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