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 LEGO Company / LEGO Direct / 1996
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Subject: 
Re: Bulk Pricing (Interesting comparison?)
Newsgroups: 
lugnet.lego.direct
Date: 
Wed, 14 Feb 2001 22:56:57 GMT
Viewed: 
764 times
  
"Ray Sanders" <rsanders@svic.net> wrote in message
news:G8rMyy.F5M@lugnet.com...
In lugnet.lego.direct, Timothy D. Freshly writes:

"Frank Filz" <ffilz@mindspring.com> wrote in message
news:3A8AD96B.7A79@mindspring.com...
[snip]
Having said all that, I do hope we will at some point see 2nd tier bulk
packs which have 1000 bricks at a cheaper price point

For example, let's say an LD rep (like Jake for example) posts that bags • of
1000 1xY and 2xY are available from LD for immediately shipment, product
numbers xxxx, etc.  No $ spent on advertising or fancy packaging.  No • space
wasted in the S@H Catalog (which = no $ spent).  No money spent on • consumer
research.  Such savings could then be passed onto the consumer (us).


With the operative word being 'could'. The real question revolves around
'should they ?'. Some of our 'bulk bricks could be had for $x.xx/piece'
discussions revolve around the prices seen in blue tubs. Does TLC make
sufficient margins on blue tubs ? Or are they a loss leader (cost of • competing
with Mega Blocks) in which case the sale price per piece (to AFOLs, i.e. • 'the
choir') might have to be higher.

One thing is for sure, when shopping at Lego Direct (unlike WM, KM, et • al)
there are no Maga Blocks buckets screaming at you from across the aisle.

Ray

My main point was simply that the cost to sell "true bulk" (i.e. basic
pieces in the 1000s) would be minimal if LEGO sold directly to AFOLs if they
did not need to spend anything on (1) advertising, (2) fancy packaging (ship
it in a plain box with padding - no pictures needed), or (3) research (it is
pretty clear that there is SOME market here for this type of bulk
purchasing).  Hopefully by reducing the cost to the bare minimum
(production, storage, and shipping), LEGO could realize a profit while AFOLs
could get their bulk bricks by the 1000s.

I would love to see a test run on this concept.  For example, say LEGO has
overproduced 100,000 gray 2x4s.  No need to just have them laying around
taking up space and costing money.  Offer them exclusively to LUGNET readers
on a first come first serve basis at $.xx per piece.

Just an idea.

Tim



Message is in Reply To:
  Re: Bulk Pricing (Interesting comparison?)
 
(...) With the operative word being 'could'. The real question revolves around 'should they ?'. Some of our 'bulk bricks could be had for $x.xx/piece' discussions revolve around the prices seen in blue tubs. Does TLC make sufficient margins on blue (...) (23 years ago, 14-Feb-01, to lugnet.lego.direct)

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