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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Mon, 15 Feb 1999 18:47:51 GMT
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Viewed:
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1488 times
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Steve Scott wrote:
> 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.
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.
> 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.
This shouldn't be an issue. TLG can easily have a requirement of membership in
the club that the goods purchased are not allowed to be sold through any other
mass-marketing channels at a profit. Further, there could be little incentive
for a person to purchase from any individuals who were to try this because they
can easily become members in the club themselves and get discounts directly from
LEGO.
> > Mark
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Message has 2 Replies:
 | | Re: TLG investigation
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| Mark Tarrabain wrote in message <36C86BD7.DA07F3E8@l....bc.ca>... (...) markup on (...) 100%. (...) It must be different in the States. I have a copy of the Lego UK retailers price list and even with all the additional discounts, it's impossible to (...) (25 years ago, 15-Feb-99, to lugnet.general)
| | | Re: TLG investigation
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| (...) What would it take for them to police/enforce such a requirement? (...) What if someone wanted to buy 500 gray 2x4 bricks and there was a minimum purchase requirement of 10,000? --Todd (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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| Tom Stangl, VFAQman wrote in message <36C65305.A351656B@vfaq.com>... <snip> (...) even with (...) running (...) 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, (...) (25 years ago, 14-Feb-99, to lugnet.general)
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