Subject:
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Re: Bulk Ordering - Secrets Revealed.
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Newsgroups:
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lugnet.general
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Date:
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Tue, 10 Aug 1999 15:00:02 GMT
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Viewed:
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1902 times
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In lugnet.general, Tom Stangl writes:
> Yes, and the other point here is that THEY would be making ALL of the money,
> not selling it to TRU at a near-zero profit margin because TRU buys so much.
>
> With bulk ordering, even though the operating costs will probably be higher,
> so will the profits, since there would be no middleman, and selling the parts
> at a retail price gets ALL the profit to TLG.
> Scott Edward Sanburn wrote:
> > I disagree. They would still be making money, whether it came from SAHBO
> > (Shop At Home Bulk Orders) or TRU.
> >
> > Naji Norder wrote:
> > > WAIT!! Here's the problem. If Lego offers any sort of bulk ordering,
> > > then people (like me) would _stop_ buying large quantities of identical >>
> sets.
Sorry Tom, Naji is correct.
1) TRU really doesn't get a better deal on sets than most any other major
retail outlet. You can check their cost on any set if you ask the store
Director politely enough. Everyone gets sets at about 62% of MSRP (That's
about a 40% discount if you get the entire profit whacked off. This is why
KMart loves the 20% off promotion - they still keep 1/2 the potential profit
(BTW, splitting the profit is a long established retail practice as well)
2) TLG may make profit on bulk sales, but the profit margin HAS to be greater
than current activities. AND, it cannot be. Please see my other posting on
this point.
http://www.lugnet.com/general/?n=6398
Naji's conclusion is the real heart of the problem on profit.
TLG has no profit motivation to serve us.
-Jon
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Message has 2 Replies:
 | | Re: Bulk Ordering - Secrets Revealed.
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| You're not going to make me believe TRU pays the same as anyone else. They may show you a book, but that is most likely "store cost" (like a car dealers "invoice price"), not true cost to the TRU chain. Otherwise TRU wouldn't have been able to (...) (25 years ago, 10-Aug-99, to lugnet.general)
| | | Re: Bulk Ordering - Secrets Revealed.
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| (...) Say, do stores ever get accrued discounts or rebates for large repeat purchases? Like, for every $1,000,000 you spend at 62% of MSRP, you're entitled to a $50,000 rebate or discount toward the next milestone? --Todd (25 years ago, 11-Aug-99, to lugnet.general)
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Message is in Reply To:
| | Re: Bulk Ordering - Secrets Revealed.
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| Yes, and the other point here is that THEY would be making ALL of the money, not selling it to TRU at a near-zero profit margin because TRU buys so much. With bulk ordering, even though the operating costs will probably be higher, so will the (...) (25 years ago, 6-Aug-99, to lugnet.general)
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