Subject:
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Re: Lego's in Mass Bulk?
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Newsgroups:
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lugnet.dear-lego
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Date:
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Wed, 14 Jan 2004 03:43:57 GMT
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Viewed:
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2666 times
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In lugnet.general, Kevin Salm wrote:
> In lugnet.general, Erik Bush wrote:
> > Hi All,
> >
> > I was just thinking...Is it possible for TLC to produce and sell lego sets
> > in mass bulk (over 1000 pcs of the same type in a contaner) and print a
> > catalog
> > maybe even every 3 to 4 months with only these sets/part bags in it? If TLC
> > sold parts in mass bulk how many people would buy them other that me?
> >
> > If TLC started producing sets/bags of part with 1000 pcs of the same brick
> > it would be a lot cheaper to order because there wouldn't be as much
> > shipping price.
> >
> > I know that TLC sells in bulk but they only sell around 100 pcs per set/bag
> > (like part #3453-#10004, and #3753 which you can buy in 100 pcs bags) so you
> > would have to buy 10 bags. Would it be cheaper to for TLC to sell even a few
> > bricks in mass bulk because of less packaging? Would it be cheaper for us
> > to buy them?
> >
> > Any comments are welcome.
>
>
> Sure it probably WOULD be possible for TLC to product 1000 piece bags of
> individual parts. And it might cost less to do than ten 100 piece units.
> However, VERY few buyers would be interested in 1000 of something as compared
> to a much greater number of buyers interested in buying 100 of something.
>
> For example, if you wanted 400 of some part, would you be willing to buy a
> bag of 1,000 every time or would you simply prefer to buy what you need?
> If you don't object to over-buying all the time I have some items I would
> like to sell to you:
> --a case of toothpaste -- 1,000 tubes. Never run out again.
> --4 tires for a car -- even though you only need one now.
> --a 50 pound block of cheese -- you use it every day, quit buying small
> packages and save half the cost.
> --a truckload of salt -- cost is just pennies per pound!
>
> As you say, it would be convenient to buy just one bag of parts when you want
> 1000 of something versus forty 25-count bags. But if too few people buy that
> huge bag then the cost to Lego to stockpile it for a long time adds to the
> cost. And the space it takes up means that Lego cannot offer other 1000 piece
> items until the first one is sold out.
>
> If you have seen how the current offerings of bulk product are packaged, then
> you will know that costs for packaging are not a big deal--probably only .01
> percent of the cost of each item. The biggest cost to Lego for the bulk
> product is likely that of storage and inventory control. Items that sit as
> unsold inventory cost money. Smaller lot units help to ensure that more
> items sell more quickly than larger lot units. 1000 lot units are not
> attractive to buyers who only want to buy 25 or 50 or 200 of something.
>
> As for shipping costs, 1000 bricks cost basically the same to ship whether
> packed as one bag or 40. The package volume or weight would be pretty
> similar as you would still be moving 1000 pieces.
>
> Personally, I would like to buy some things in larger quantity than offered,
> but for most items, I am not willing to buy 1000. If 1000 was the only size
> offered, I would end up buying zero. I believe that most people would do the
> same.
Let me add that I think Erik's underlying questions about price are valid and I
forgot to address them.
Lower prices for us to buy bulk items, regardless of quantity, would be
excellent and certainly would allow for larger purchases. Certainly I am in
favor of that. I know when I am selecting bulk items, I always maximize the 15
percent discount offered when buying 15 or more units. It would be great if
that discount were increased to include 20 percent off 20 units and even 25
percent off of 25 units. Such an increase would make it more cost effective for
us to buy more and should result in a greater number of sales for Lego.
Unfortunately, it may negatively impact TLC's revenue per unit making such an
offer a financial loss. So while I can wish it, it may never happen.
__Kevin Salm__
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