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Subject: 
Re: Did Bricklink make Lego bulk sales irrelevent?
Newsgroups: 
lugnet.general, lugnet.market.theory
Date: 
Wed, 10 Sep 2003 19:03:52 GMT
Viewed: 
2403 times
  
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.

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 cost basis.  Seriously, who would buy, if they did that?

Kevin



Message has 2 Replies:
  Re: Did Bricklink make Lego bulk sales irrelevent?
 
(...) i dont understand what you mean here.. cost of brick, as i understand it is Cost to Manufacture, then part out into sets (which should be saved since its bulk), then cost of shipping. "Hidden" means there something else in this mix im not (...) (21 years ago, 10-Sep-03, to lugnet.general, lugnet.market.theory)
  Re: Did Bricklink make Lego bulk sales irrelevent?
 
. (...) But you haven't thought about the volume buying large-scale retailers have done. They have excess inventory so they can reduce the price on it so cheaply that other buyers like Troy can get sets for reduced cost. Its a shame on one hand, on (...) (21 years ago, 10-Sep-03, to lugnet.general, lugnet.market.theory)

Message is in Reply To:
  Re: Did Bricklink make Lego bulk sales irrelevent?
 
(...) 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 (...) (21 years ago, 10-Sep-03, to lugnet.general, lugnet.market.theory)

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