Subject:
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Bulk vs. BrickBay (was: Goodbye Lego and thanks for all the bricks)
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Newsgroups:
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lugnet.general
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Date:
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Mon, 12 Nov 2001 19:31:13 GMT
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Viewed:
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1419 times
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> And where they REALLY need to get some understanding of where the consumer
> is at in terms of price and interest is in bulk bricks. Here TLC need do
> nothing more than provide the elements, but they seem unable to get this
> part right. 2 x 4 bricks @ 50 for $6.99 USD is around $0.14 a brick -- are
> they high? If they aren't, then the higher-ups need to wonder why perfectly
> sober people cannot figure out how to sell bricks in bulk. I think at such
> prices that people only buy from S@H when they somehow have no other option.
Exactly- Lego sells sets to the mass market (where "mass" is a lot bigger
than us). For some things that you can't get very well from parting out
sets, Lego has put a high premium on them... and they sell. If you want a
specific part that isn't in bulk, you buy the mass-market product. Sure,
you spend a large percentage of that money on stuff you don't want. Where's
the disadvantage to Lego there?
> Brickbay anyone?
DING DING DING! Brickbay is fulfilling the need, and Lego doesn't spend a
dime on it. They profit through their regular sales channels, and as a
bonus... Lego on sale ALWAYS moves. Retailers have only to mark stuff down
a small amount to attract resellers, so they have little unsellable Lego
stock. That gives them more incentive to stock more Lego.
Lego has absolutely no reason to sell parts by the single- as long as they
keep cranking out lame sets that have the right parts, people will buy them
and resell them on Brickbay. The market for that kind of stuff is too small
for Lego to reasonably benefit. There are a lot of logistics to selling by
the part, and Lego would have to put a ton of money into getting something
like this rolling. But they can get the money without doing that work.
Remember- every time you buy a piece on BrickBay... Lego got paid.
Indirectly, sure. They actually got paid for the whole set at some point,
and that set is sellable to a mass market.
--
Tony Hafner
www.hafhead.com
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