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Subject: 
Re: My first visit to LIC
Newsgroups: 
lugnet.general
Date: 
Wed, 9 May 2001 21:07:22 GMT
Viewed: 
647 times
  
In lugnet.general, Jonathan Lill writes:

Speaking as a former LIC employee (at the Mall of America store) the way it
was described to us is that the LIC is NOT trying to "compete" with other
retailers (Target, Wal-Mart, Toys 'r' Us, etc...)  Those companies sell more
LEGO product in a week than all the LICs might sell in a year.
JohnG, GMLTC

While I understand that point of view I reject the argument because Lego
competes against the other outlets via the web and its catalog.

This is common channel management.  You don't compete against your main
channel which for LEGO is retail stores.  Their direct pricing via S@H and
LICs for current product is at least MSRP.  Stuff available via S@H, LICs
and the Outlet stores are typlically no longer available through retailers
unless it is existing inventory in their pipeline.

They also
until recently offered special discounts in the form of free shipping and
occasionally sell discounted closeout product. Those incentives don't
necessarily make S@H a more attractive place to shop than TRU or anyone else
but they are decisions made to increase competitiveness. Essentially I would
like the LIC stores to rise to the level of S@H. I bought the dinosaur sets
today on the phone, whereas the LIC assistant manager hadn't even heard of
them yet. Because there are so few LIC's it wouldn't take much merchandise
to offer a token presence of rare  or new sets. It wouldn't take much of a
discount to feel like I was shopping at a privileged source. And because the
shops are so rare, there is no chance of them seriously biting into the
money I give to any other outlet.

I agree with a previous poster that the LICs are nothing more than brand
builders.

Again, I love the fact that LICs exist, I am just noting how far they fall
away from my ideal LEGO wonderland.

Agreed.

-Rob.



Message is in Reply To:
  Re: My first visit to LIC
 
(...) While I understand that point of view I reject the argument because Lego competes against the other outlets via the web and its catalog. They also until recently offered special discounts in the form of free shipping and occasionally sell (...) (23 years ago, 9-May-01, to lugnet.general)

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