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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Wed, 11 Aug 1999 19:05:35 GMT
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Viewed:
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2129 times
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In lugnet.general, Tom Stangl writes:
> 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).
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. (I base this on personally visiting over 20 TRU's this summer).
I believe that their systems do reflect true acquisition costs.
In any event, TRU can easily pressure a supplier (remember "buyer power" from
our MBA classes) due to volume of sales alone. I would guess that TRU is
LEGO's largest customer, with Walmart and Target following respectively. Just
the threat of reducing LEGO product buys alone would be enough for LEGO to
react. Your largest customers typically only get the standard "major customer
pricing" if you have a unique product, which LEGO has. A commodity product
would certianly be dealt with differently, but that's how most major businesses
function. 1 price for small buyers, another for large buyers, even though
other "perks" are often tossed in - like exclusive sets...
-Jon
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Message is in Reply To:
 | | 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)
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