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 23:12:36 GMT
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Viewed:
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1710 times
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Todd Lehman wrote:
> In lugnet.general, markt@lynx.bc.ca (Mark Tarrabain) writes:
> > > In lugnet.general, markt@lynx.bc.ca (Mark Tarrabain) writes:
> > > > Steve Scott wrote:
> > > > > 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.
> > >
> > > What would it take for them to police/enforce such a requirement?
> >
> > Well, for one thing, memberships would only be available to individuals, not
> > corporations. Although this wouldn't necessarily stop a person from doing this
> > altogether, it would put a cap on the amount of profit that they would be allowed
> > to make, since the federal government does not allow individuals to bring in more
> > than a certain amount of money per year without having to become a licensed
> > business.
>
> How far does that go toward stopping an individual from buying $25,000 in
> bulk bricks and reselling these to a local toystore for $25,250? (The
> profit is only $250 on the transaction. Not bad for about 1 hour of work.
> :-)
That's only 1% profit. Who's going to bother spending that kind of money to make so
little? Further, I would never suggest that TLG charge club members prices that are
below what retailers could get their stuff for. I, for one, would be quite happy with
a discount falling anywhere between TLG's wholesale price and recommended retail
price. Thus, it offers no real advantage to people who might want to consider selling
to retailers because retailers can get LEGO cheaper directly from TLG themselves. It
still offers advantages to people whose primary channel for obtaining LEGO is through
retail outlets (which is most of us).
> Any restriction limiting purchases to individuals only (and not to
> corporations) would immediately create a demand for middlemen to launder the
> purchases for the corporations.
Nope. The income level of these "middlemen" would exceed the amounts allowed for
private individuals without being corporations. Anybody who tried to get away with it
anyways would be guilty of tax evasion. Sure there are people who do it, and some who
even get away with it, but it's still against the law, and if you *DO* get caught...
well... it sure ain't worth it.
> I don't see how it could be policed or enforced. Or even detected.
TLG doesn't have to enforce it. The government already does. They don't catch
everybody, but they do catch some. Do you really want to risk it?
> > Mark
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Message has 2 Replies:
 | | Profit dynamics of bulk purchases
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| (...) Think. Toystore writes $25,250 cashier's check to individual. Individual deposits check and writes new cashier's check to LSI for $25,000. LSI delivers bulk elements to individual. Individual delivers bulk elements to toystore. In other words, (...) (25 years ago, 16-Feb-99, to lugnet.general)
| | | Re: TLG investigation
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| (...) I will. If you can point me to a scheme that is legal, and guaranteed to return 250 an hour for a capital investment of only 25,000 I am THERE. Only takes 100 hours to double your money at that rate. Lots of arbitrageurs make a nice living on (...) (25 years ago, 16-Feb-99, to lugnet.general)
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Message is in Reply To:
| | Re: TLG investigation
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| (...) How far does that go toward stopping an individual from buying $25,000 in bulk bricks and reselling these to a local toystore for $25,250? (The profit is only $250 on the transaction. Not bad for about 1 hour of work. :-) Any restriction (...) (25 years ago, 15-Feb-99, to lugnet.general)
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