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 22:58:41 GMT
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Viewed:
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2109 times
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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 pressure TLG into keeping certain sets
from warehouse chains like Sam's/Costco/etc (This is established fact - while TRU
admitted to no wrongdoing, paying $40.5 MILLION to a classaction suit shows they
were doing it).
jon kozan wrote:
> 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
--
| Tom Stangl, Technical Support Netscape Communications Corp
| Please do not associate my personal views with my employer
|
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Message has 2 Replies:
 | | Re: Bulk Ordering - Secrets Revealed.
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| (...) While it true that I can't "make you believe" anything ;-), I can however, tell you what I know. TRU's computer systems are somewhat closely guarded from customers and have plenty of information that even many store Directors don't know about. (...) (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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| (...) 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 (...) (25 years ago, 10-Aug-99, to lugnet.general)
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