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In lugnet.general, Leonard Hoffman wrote:
> 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.
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, you could have no problem to
beat LEGO's bulk rate, and even make a bit of profit on the side. The only
real problem now is the amount of other sellers. It floods the market keeping
the price down, which is good for the buyer... :)
> > 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.
I have to solidly agree. Plus, if LEGO stops selling a certain bulk parts pack,
then it seems like everyone else stops stocking the parts. Case in point, the
Black Steep Roof Tile. I thought the market was flooded with them, then LEGO
discontinued it from Shop@Home. Doing a scan on availability, you can only get
these in sizeable quantity from Germany, but not even enough to make it
worthwhile.
> > 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).
I doubt it. But you never know. I'm sure there are a few research guys
scanning the secondary market for the supply and demand. I'm sure the overall
decision isn't based on Bricklink, but what kind of availability
to the consumer. Like continuing to issue out Jackstone sets, despite not
having any dynamic kind of sales.
> > 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.
Personally, if it is something small or something I cannot get from S@H, I
usually go the Bricklink way - like 45 degree corners, and the like. If
it is bulk brick, in sizable quantity, then I usually go Shop@Home, with the
bulk discount, and paying a maximum of $10 shipping (free in some cases), I
find the savings in that will help with the overall savings in brick cost.
Ben
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