General Discussion : 34007


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Subject:	Re: Bulk vs. BrickBay (was: Goodbye Lego and thanks for all the bricks)
Newsgroups:	lugnet.general
Date:	Mon, 12 Nov 2001 21:25:33 GMT
Viewed:	1433 times

> In lugnet.general, Tony Hafner writes: > > 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. Hello Tony, I explored the math behind this particular argument in a post to LUGNET about a month ago: http://news.lugnet.com/dear-lego/?n=3510 I 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 spending money with resellers instead of the original manufacturer, then the original manufacturer obviously isn't providing a goods or service that the customer wants. And by not doing that... they are in the end losing money. Regards, Allan B.

Message has 1 Reply:

		Re: Bulk vs. BrickBay (was: Goodbye Lego and thanks for all the bricks)
(...) This logic doesn't necessarily hold true. How many products are sold by company owned stores? Resellers abound in many markets, for a variety of reasons. One of the biggest reasons is that they serve a niche part of some larger market. I (...) (23 years ago, 12-Nov-01, to lugnet.general)

Message is in Reply To:

		Bulk vs. BrickBay (was: Goodbye Lego and thanks for all the bricks)
(...) 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 (...) (23 years ago, 12-Nov-01, to lugnet.general)

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