Subject:
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Re: why does lego (and lego australia) hate online stores?
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Newsgroups:
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lugnet.general, lugnet.loc.au
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Date:
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Mon, 25 Jun 2001 20:49:09 GMT
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Viewed:
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507 times
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In lugnet.general, Eric Kingsley writes:
> In lugnet.general, John Radtke writes:
> > In lugnet.general, Jonathan Wilson writes:
> > > Other than the obvious fact of shop.lego.com, is there any reason lego
> > > hates online stores/doesnt allow stores to sell lego online?
> >
> > Do you mean specifically in Australia? That isn't the case in the US. Are
> > there no online toy stores at all or just none that offer LEGO? Is there
> > some set of laws down there that would allow TLG to prohibit a reseller from
> > offering their product online? I'm not sure I can imagine how that would
> > benefit TLG...
>
> I don't remember the exact rules but TLC requires that any store that wants to
> put LEGO online must have a minimum of 6 (I think) "Brick and mortar" stores.
> There was an exception for eToys but we all know how that worked out.
>
> This prevents many "mom and pop" type stores from selling LEGO online. I don't
> know the reasoning behind this rule but then again I don't know why TLC does a
> lot of things the way they do. All I can see is that it prevents someone from
> opening a storefront with the premise of being an online retailer. Maybe TLC
> doesn't want its retailers competeing with shop.lego.com (doesn't help those
> down in AU but its a guess).
LEGO OZ (slap me if I am wrong) doesn't like online stores due to their
commitments to stores that also sell Lego... from what I can remember it had
something to do with the fact that with these other stores they pay a
certain amount for leasing parts of the shop or shelves too. So I think
they prefer that stock be sold from these areas than online where it's a
piece of cake compared to the time and effort of a actual store.
Places like Toyworld and K-mart etc who sell Lego obviously come into these
catagories and therefore are able to have an online store because they have
many other products and LEGO etc already pay their bit to have their stock
in there actual stores. For the consumer it can be a pain in the butt! But
also to the retailer too. But then again for all this, Australia really
isn't big enough and LEGO here (apparently) already has trouble with some
lines etc.
I have spoken to shops before that say the only real time they move stock is
with their store percentage discounts and sales or reduced prices. These
stores don't really make a bean from alot of these products in the first place.
Places like Myer for ex won't price match another stores price unless it
protects their purchase price. And you will find it isn't much gain for
them at all. Places like David Jones will price match and (after a few
experiences) they lose more than an arm and a Leg, which is also why some
stores sell their items for more than others (not to mention all the
overheads). With all this and more in mind you'll find atleast some of my
blabble could be possibly true! :)
Mel
P.S ask Michael from ozbricks I am sure he could tell you the rest! He is
the only (that I know of and sure of) online (LEGO only) store.
> Eric Kingsley
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