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Subject: 
Re: Bulk Ordering - Secrets Revealed.
Newsgroups: 
lugnet.market.shopping, lugnet.general
Date: 
Tue, 10 Aug 1999 23:30:51 GMT
Viewed: 
92 times
  
(Posted to .market.shopping as well)

So, TRU was pressuring TLG not to sell to others. Figures.  >:(

Well, I did see my first Lego product at Sam's Club the other day, it was that
small laptop building table, with 225 BASIC pieces, and three sets, the Space
Port car thing, the Adventurers Swamp Plane, and one other one for 19.95, a good
deal. (The three sets alone cost upwards of 19-20 dollars.) Maybe they can start
bulk orders... Hmmmm! :)

Scott Sanburn

Scott Sanburn

Tom Stangl wrote:

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



Message is in Reply To:
  Re: Bulk Ordering - Secrets Revealed.
 
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)

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