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Subject: 
Re: Did Bricklink make Lego bulk sales irrelevent?
Newsgroups: 
lugnet.general, lugnet.market.theory
Date: 
Wed, 10 Sep 2003 13:59:30 GMT
Viewed: 
2335 times
  
In lugnet.general, Bryan Kinkel wrote:
It has been a while since the bulk selection offered by Lego Shop@Home as
been expanded beyond a new release or two. (Where are the gray tiles!?)

And this got me thinking -

A. Did the arrival of BrickLink create a viable alternative to bulk sales
offered by Lego Direct?

What I find so interesting about this question is that all LEGO ultimately comes
from the same source: TLG itself.  Now, understanding that, there are certain
Bricklink sellers who buy multiple sets for the sole purpose of parting them out
and re-selling them.  You would expect for the price to be somewhat higher than
what TLG offers (the price of buying the piece you want in the quantity you
want).

However, lets take Troy's Surplus for example - he sells the Dark Grey 1x2 brick
for .04 a piece!  TLG sells it at .06 a piece - at the max discount of 15%, it
is .052 per piece.

So, either Troy is buying in bulk, parting them out, and taking a severe cut.
OR TLG isn't selling at the lowest profitable price they can.  Or there are
hidden costs in supply to bulk, that Troy avoids by parting himself.

B. Because we have 1,056 (1) sellers on BrickLink, is there any need for
bulk sales from Lego Direct?

While not all of TLG's prices are below Bricklink, many are.  And also, TLG
offers an almost endless supply.  If you want four hundred 1x2 bricks, BL is the
place to go.  If you want 14,000 - even at the higher price, TLG is better
because they have the product in the quantity.

C. Do you think BrickLink has had any influence on the decision making
process at Lego Direct regarding the bulk offerings?

I sometimes wonder that myself.  I also wonder about how they decide in relation
to high price items on BL - no example comes to mind, but i know some high
priced piece were dropped in value because TLG suddenly came out with a set
featuring that item at a really reasonable price or quantity (well, the 1x3x2
white half arch - used to be nowhere to be seen, now because of the space
shuttle set, I'd expect to see them alot around, and cheap).

D. Why do you purchase Lego elements through Shop@Home versus BrickLink? Or
BrickLink over Shop@Home?

Usually when i do it, for the same reason you said - they offer free shipping
over 100, but ive only got 80 in sets.. ahh, throw in a few 1x4 greys or
trans-white bricks.

-lenny



Message has 3 Replies:
  Re: Did Bricklink make Lego bulk sales irrelevent?
 
(...) Its the "magic" of Clearance. A high volume purchaser like Troy is able to afford to eat up the inventory, plus he is able to buy at the wholesale level, making it even cheaper for the brick. Heck, if you could get a ton of sets at 75% off, (...) (21 years ago, 10-Sep-03, to lugnet.general, lugnet.market.theory)
  Re: Did Bricklink make Lego bulk sales irrelevent?
 
(...) There are two other explanations; one, the cost per brick when parting is lower regardless of any hidden costs, or two, which is what I believe, it's not really possible for a BL seller to charge more than Lego Bulk prices, regardless of their (...) (21 years ago, 10-Sep-03, to lugnet.general, lugnet.market.theory)
  Re: Did Bricklink make Lego bulk sales irrelevent?
 
(...) But the seller isn't buying the bulk bricks from TLG and then directly reselling them. Instead, the seller buys a $10 set that has five less common pieces. Let's say he can sell those pieces for $2 each, then there are a bunch of other, more (...) (21 years ago, 11-Sep-03, to lugnet.general, lugnet.market.theory)

Message is in Reply To:
  Did Bricklink make Lego bulk sales irrelevent?
 
It has been a while since the bulk selection offered by Lego Shop@Home as been expanded beyond a new release or two. (Where are the gray tiles!?) And this got me thinking - A. Did the arrival of BrickLink create a viable alternative to bulk sales (...) (21 years ago, 10-Sep-03, to lugnet.general, lugnet.market.theory)  

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