Subject:
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Re: Profit dynamics of bulk purchases
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Newsgroups:
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lugnet.general
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Date:
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Tue, 16 Feb 1999 00:58:58 GMT
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Viewed:
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1797 times
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Todd & All;
Excellent discussion regarding bulk brick sales. In certain political
circles, I know if say corporation A gives 10 people $1,000 each to give
to a candidate that supports them, while the maximum contribution is
$1,000, it is illegal and is called money laundering. (This is a big
topic in the US for the election of 1996 in regards to funds from
various Chinese interests) However, I do not think it is illegal from a
Commerce point of view unless the TLG has certain provisions in regards
to retailers selling bulk products sold to the Adult Lego club, and they
have some sort of contract.
I would be in favor of TLG handling the sales themselves, limiting the
quantity, etc. and just letting anyone buy bulk bricks that they
produce. That way there is less chance for rejection from TLG and
eliminates some of the sales problems.
If anyone knows otherwise, please let me know, but I worked in the
plastics industry for a few years, and I think Lego bricks are produced
by plastic mold injection machines (Cincinnati Milacron and so forth),
where they have metal molds/dies which have the shape of x amount of
bricks, and they put the ABS plastic in the machine, melt it, and makes
the Lego bricks. If this is the case, they should have all the molds
from most, if not all the bricks ever made. It should not be that hard
to have a special order come from our club to produce a certain amount,
and they can handle the sales and limitations in regards to distribution
and so forth. It takes typically about one to two hours to set up a
machine, depending on the die and on startup procedures, and they should
be able to produce a few thousand parts in a relatively quick fashion.
In my final thoughts (I am way too tired tonight!) I think the best
approach would be a spin-off of SAHS, charge more than the wholesale
cost, maybe even higher than retail (If I had the chance to buy 100
light gray 1x8x1 flats, I would pay an enormous amount of cash!) on some
items, and TLG makes a decent profit, it depends on the parts, I am sure
they would be willing to look into it.
However, this is all extremely hypothetical, and it would be great to
to see what a great thing Lugnet is: An electronic center where their
product (Lego items) is discussed, enjoyed, and debated, spawning
numerous ideas, creations, etc. into the world. Any publicity like that
should be praised and appreciated, not ignored. Thanks to all the people
that set Lugnet up, I am glad that it is here! :)
Scott Sanburn
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Message is in Reply To:
 | | 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)
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