Subject:
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Re: Are you paying attention, LEGO?
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Newsgroups:
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lugnet.dear-lego
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Date:
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Wed, 1 Nov 2000 14:30:19 GMT
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Viewed:
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1697 times
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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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