Subject:
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Re: TLG investigation
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Newsgroups:
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lugnet.general
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Date:
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Sun, 14 Feb 1999 21:19:13 GMT
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Viewed:
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1441 times
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Tom Stangl, VFAQman wrote in message <36C65305.A351656B@vfaq.com>...
<snip>
> NOT AGREED. They would have no incentive to do this if there were no
> profit. A small profit is understandable, and if they sold direct to us, • even with
> profit added in, we would save tons of money, as the 100%+ markup of • running
> through the distribution channel would never happen.
100%+ mark-up, in your dreams!! Where did this figure come from?
I don't know if the system is different in the states, but in the UK, there
is no distribution "channel". Over here TLG sells straight to retailers.
Everybody buys from TLG at the same price. If you ordered in excess of
£100,000 worth in your last year, then you are awarded an extra 2% discount.
There are another couple of incentive schemes that might add another 1% to
your trade discount, but that is it! Surprisingly, there is NO recommended
retail price list, only the standard trade price list. Shelf prices are at
the discretion of the retailer. Highest margin sets are the £10-£15 boxes
which realise about 30-35% TOPS. At the other end of the scale are the sets
that Argos stock. Matching their prices squeezes margins to a wafer thin 8%
in the worst cases.
If I was a Lego retailer, I would object to TLG selling direct to a group of
people who have the means to sub-distribute (via the web) at a profit. Who's
to say that any product sold to RTL'ers won't find it's way back on to the
open market at a profit.
I honestly cannot see TLG selling to RTL or other clubs even at shelf price
+100%. Doing so will cause deep mistrust amongst the very retailers that
TLG depend upon to distribute their products for minimal return.
Cheers
[SteveScott]
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Message has 1 Reply:
 | | Re: TLG investigation
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| (...) I used to work in the toy department of a large department store. The markup on almost all of our stuff between our cost and final retail price was about 100%. Some was even more. (...) This shouldn't be an issue. TLG can easily have a (...) (25 years ago, 15-Feb-99, to lugnet.general)
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Message is in Reply To:
| | Re: TLG investigation
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| (...) Agreed - ESPECIALLY an ID card that is nice thick plastic like a credit card. Like the Legoland CA Primo Pass I'l be picking up Mar 14 at the preview opening ;-) (...) Agreed (...) AGREED (...) NOT AGREED. They would have no incentive to do (...) (25 years ago, 14-Feb-99, to lugnet.general)
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