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Subject: 
Re: TLG investigation 1st answers
Newsgroups: 
lugnet.general
Date: 
Sat, 20 Feb 1999 15:37:35 GMT
Viewed: 
1529 times
  
In lugnet.general, ottens@get2net.dk (Jeroen Ottens) writes:
It seems I have forgotten one point on the list:
- AFOL's spend their money on auctions instead of TLG products.

I think a statement like that could be read the wrong way out of context.

AFOLs in general do spend a large portion of their LEGO budgets on new TLG
retail products, but a growing percentage are resorting to spending money in
fan-to-fan auctions as well -- in part because they're builder/collectors and
want to be complete in some area, and in part to make up for the discrepancy
between what they would like to see available from TLG and what is actually
available.  (Early 80's Town and late-80's Castle and Space sets are a prime
example.)

In parts auctions, TLG still makes a bundle of cash because the seller buys
brand-new sets which cause retailers to restock sooner.  In old-set auctions,
it's purely the fan who is making the cash.  However, in many cases, this cash
simply refuels the seller to buy more sets or parts from other fans or from
retailers.  One way or another, a decent portion of the money finds its way
back to TLG eventually.

But the bottom line to summarize, I think, is that AFOLs in increasing numbers
are having more enjoyable purchasing experiences by buying and trading older
sets with each other than by buying new sets in stores.  In other words, the
earlier themed sets appealed to AFOLs in a big way, while the newer sets appeal
to AFOLs in a much lesser way.  The result is that AFOLs are pouring less and
less money directly into TLG's pocket as time moves forward.

Perhaps the Star Wars line will be "the exception which proves the rule."


Please remember, I am only a designer at Futura. I am not a high placed
marketing guy. It will take me loads of effort to achieve anything. I am
glad some of you (thanks Jim) acknowledge that.
Things do move. The fact that I am not doing this investigation on my own
initiative (although it happened to be very welcome by me), but that I have
an official request from my boss for this seems a clear signal to me.
But remember changing the way a whole company thinks takes some time.

That's perfectly understandable!  :)  How many people work for the Lego Group?
Something like 8,000?  Changes in an organization that large must take a lot of
time when the structure is divided into 40+ separate business units around the
globe.  BTW, is online (Internet) connectivity ubiquitous in the homes and
business of Danmark or is connectivity prohibitively expensive for most?  The
reason I ask is, your e-mail address suggests that you may be writing to us
from an ISP outside of your workplace (rather than a lego.com address); is TLG
wired up for at-work Internet communication for all its employees or for only a
select few?


Anyway, thanks again for your respones. I will do my best to convey the
points as good as possible.

Thank you so much for taking the time to do this.  Since your boss has given
you an official request, I realize that this is a part of your job, but we can
see that you are approaching the matter with respect, thoughtfulness, and care.
Plus, hey, you yourself are an AFOL!  :)

--Todd



Message has 1 Reply:
  Re: TLG investigation 1st answers
 
Todd Lehman <lehman@javanet.com> wrote in article <snip> (...) numbers (...) older (...) the (...) appeal (...) and (...) Maybe I don't have to add the fifth point at all. It seems to me that if Lego would provide a bulk piece ordering service, (...) (26 years ago, 20-Feb-99, to lugnet.general)

Message is in Reply To:
  Re: TLG investigation 1st answers
 
Hi everybody, It seems I have forgotten one point on the list: - AFOL's spend their money on auctions instead of TLG products. Please remember, I am only a designer at Futura. I am not a high placed marketing guy. It will take me loads of effort to (...) (26 years ago, 20-Feb-99, to lugnet.general)

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