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 22:46:09 GMT
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Viewed:
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2141 times
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Jon Kozan wrote:
> To an earlier point, the returns simply cannot compare in selling separate
> parts to those of selling complete sets.
> 1) There is a market here certainly
> 2) It is far, far too small
It is only too small if they do a rotten job of marketing it. If the info on
ordering were in every set, and they had an easy online ordering system, I'm sure
the market would grow rapidly.
> 3) It doesn't offer adequate returns to service it.
Not true. TLG sells a set to TRU, they make a small profit (single digits, I'm
sure). TLG sells a piece to a Legoneer at a retail price, they make 100% profit
or more. Properly market it and make it easy to use, and it WILL become a decent
part of the bottom line.
> 3a) Business speak: The NPV of the activity, while perhaps(???) positive, is
> less than current activities, so, (if they were a public company), they would
> be diluting their stock value.
> Ergo...
> We don't matter all that much
We don't, but we are a window into a much larger audience that is either not
connected, or is but simply doesn't know what is out there.
>
>
> (Note a similar analagy could be drawn in the case of why McDonalds doesn't
> offer home delivery,... No, better yet, Why McDonalds doesn't offer home
> delivery of pickled pigs feet)
Uh, not QUITE the same thing - Lego doesn't spoil if the driver is too slow ;-)
--
| Tom Stangl, Technical Support Netscape Communications Corp
| Please do not associate my personal views with my employer
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Message has 1 Reply:
 | | Re: Bulk Ordering - Secrets Revealed.
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| (...) sure the market would grow rapidly. It's more than the size - it's also the potential to reduce other sales where the buyer (remember, I'm talking about their real customer base - kids) buy parts they don't need in sets just to get the parts (...) (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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| (...) That sounds like they believe that they can make more $ selling the parts in sets. That way, the uninitiated will buy entire sets, and carry the cost of the parts they don't want themselves. Thus TLG sells far more than they would if they just (...) (25 years ago, 10-Aug-99, to lugnet.general)
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