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 Dear LEGO / 2603
2602  |  2604
Subject: 
Re: Are you paying attention, LEGO?
Newsgroups: 
lugnet.dear-lego
Date: 
Wed, 1 Nov 2000 14:30:19 GMT
Viewed: 
1655 times
  
In lugnet.dear-lego, Todd Lehman wrote:

Most of the sales, but not most of the profits.  :-)  I'll bet the largest
percentage of gross profit will come from direct-to-consumer bulk sales.  The
overhead is minimal -- you need servers to handle orders and walk the
customer through buying, etc., you need production facilities with robots
to assemble the orders from vast parts coffers (hopefully with as close to
JIT production as possible), you need software to run all that, and you need
a bit of grunt labor to make sure it gets shipped).

You forgot the vast customer-support resources needed, to deal with
breakdowns in the server-to-customer interface.

Personally, I'm guessing TLC will be better off offering bulk paks like we
see now, but adding *steep* discounts for *extremely* large purchases.
They can write off the discount as a marketing cost--because the largest
purchases tend to advertise for TLC.

Steve



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