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Subject: 
Bulk vs. BrickBay (was: Goodbye Lego and thanks for all the bricks)
Newsgroups: 
lugnet.general
Date: 
Mon, 12 Nov 2001 19:31:13 GMT
Viewed: 
1390 times
  
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



Message has 1 Reply:
  Re: Bulk vs. BrickBay (was: Goodbye Lego and thanks for all the bricks)
 
(...) Hello Tony, I explored the math behind this particular argument in a post to LUGNET about a month ago: (URL) think there is a strong case for the theory that they could actually be making even more money than they are now. Any time people are (...) (23 years ago, 12-Nov-01, to lugnet.general)

Message is in Reply To:
  Re: Goodbye Lego and thanks for all the bricks
 
(...) They do show some spark, but not quite enough. I have some interest in the squid vehicle, which uses some very un-lego-like elements, but I still like it because it has style up the wazoo. But after the whole Ogel's Control Center (...) (23 years ago, 11-Nov-01, to lugnet.general, lugnet.lego.direct)

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