Subject:
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Re: bulks and trees and some new stuff on its way REPLY FOR BRAD
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Newsgroups:
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lugnet.lego.direct
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Date:
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Tue, 18 Dec 2001 02:12:24 GMT
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Viewed:
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819 times
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In lugnet.lego.direct, Brad Justus writes:
> OK, in this message I'll tackle some of the questions (as best I can) that
> have arisen recently regarding our bulk program. And I'll toss in a couple
> of other items of interest at the end (no scrolling ahead, now...).
>
> Let me say first that our bulk program is, of course, a relatively new
> program (as is nearly everything we have been doing in LEGO Direct). And we
> treat every program, every product we launch as a work-in-progress. That
> means that most aspects of any of our programs -- including selection of
> items, pricing, package design, even distribution strategy -- are subject to
> change. This is true as well for the bulk program.
>
> For example: pricing. We know the pricing structure for bulks is not
> perfect. But it is naturally easier to lower prices than to raise them. (How
> would people have felt if we had launched a bulk program and discovered we
> had *underpriced* the offering and needed to raise prices to keep the
> program alive? Not too happy, I would think.) We started at a level of
> pricing and elements per bag that we felt was appropriate given such
> variables as past history with accessory items and certain other input --
> for example, demand recorded by our consumer services group as well as other
> consumer data. We knew that prices were likely not right, but we needed to
> test the market to see what changes were necessary. So we have been tracking
> bulk sales and purchase behavior over the year in order to give us an
> indication of how we could best adjust our pricing structure for the coming
> year (we needed a significant pool of sales data, and most of our sales
> happen in the last part of the year -- otherwise we would have implemented
> changes sooner). And I am pleased to tell you that beginning with the
> January LEGO Shop At Home catalog (and online as well) we will offer
> discounts on multiple bulk item purchases: 5% off any 5 bags, 10% off any 10
> bags, and 15% off any 15 bags (or more). We'll see how this goes, and then
> offer additional levels of discount if appropriate.
This is good.
> To those who believe that "true" bulk sales can only be numbered in the
> thousands of elements, I must respond that really, such sales represent only
> the smallest of fractions of our sales base for "loose" elements. Such
> buyers are of course out there -- there are many of them here on LUGNET,
> which may give the impression that those who desire elements in packs of
> 1000s are more numerous than is actually the case -- and there are of course
> venues such as Brickbay which cater more specifically to this market. But
> the number of bulk transactions on Brickbay pales alongside what we do
> through LEGO Shop At Home. And priority must first go to what our sales and
> other factual data indicate to be the needs of the largest number of
> consumers at present. Nevertheless, we do recognize the "ultrabulk" market
> and we hope to implement further discounts for such buyers sometime in the
> next year.
I disagree I think there are more bulk orders than you know of, because WE
usually dont post or comment a lot, nor do we waste our money by purchasing
overpriced brick at LSAH.
> The colors and elements we select are based (again) on historical data as
> well as other information. We try to work out a schedule that allows us to
> introduce new elements and colors while maintaining the maximum number of
> "older" bulks on offer -- as we are limited (for economic and inventory
> managment reasons) in the number of elements that we can have in active
> production at any given time (active production means that we can reorder if
> we run out). Some elements are simpler to manufacture than others, but we
> still must wait our turn in the manufacturing queue -- and, of course,
> priority goes to manufacturing elements for sets. Other elements require a
> bit of planning -- such as securing the old molds for the cypress trees
> which were just reintroduced. And sometimes we get lucky and can seize an
> opportunity -- such as with the sand red bricks -- where we can "tag along"
> on current production of elements and colors we feel (rather than know
> precisely) *might* have value. (And indeed, sand red bricks have been quite
> popular.)
>
> We often end up adjusting and readjusting our bulk selections based on
> manufacturing and packaging opportunities and limitations. Consequently, I
> can't really say exactly what we'll be offering or precisely when -- I don't
> want to make any promises that circumstances might force us (unwillingly) to
> break. That said, do I think you'll see a bigger selection of (for example,
> just plucking an example out of the air...) gray elements next year? I would
> think so -- we hope to make this so. But no promises.... We'll make
> announcements of upcoming offerings as soon as we have absolute confirmation
> that we'll be bringing them out.
Mumbo Jumbo talk now! Ok you probably release what?.....1x1 and 1x3 only for
the entire year! We need slopes badly and plates and tiles! and in good
sizes too. Start offering something that we couldn't get before in the old
accessory packs! Sheesh
You want to talk about cost Brad, look at the 2x2x3 75 degree double convex
brick found only in one set, I am offering $15 per piece, why dont you make
more of those!?
>
> Next issue: cypress trees. The trees are made of precisely the same material
> that we have used in the past; and yes, it is indeed a softer and more
> pliable material than found in the basic brick. In fact, we are using the
> same molds (we had to freshen them to get more production out of them) that
> were last used for these elements. So there is nothing about the
> *production* of these elements that has changed. The *packaging* of the
> trees is of course different -- we have packed the trees in bags (as opposed
> to their inclusion in a set or as a boxed accessory as in the past). It is
> our supposition that as the material is indeed softer, and the trees are
> packed in bags (not boxes) the likelihood of "squeezing" the elements during
> transport (either to our fulfillment facilities or to you) is increased --
> thus causing the bending that some of you have experienced. It appears that
> the instances of such bending have been very few; and I am told that the
> trees should bend back with a little effort. We apologize for this problem
> -- but you should understand that it is by packaging the trees in this
> manner that we have been able to deliver them at what we felt was a very
> attractive cost; to add cardboard packaging would likely have forced us to
> incur additional costs in packing and package design. So it was a
> compromise, but one we felt was appropriate.
>
> Last bit: a couple of announcements.... First, yes, it's true that a couple
> of our sculptures are no longer available through LEGO Shop At Home. As it
> happened, the sales of these items has been so great the past few weeks that
> we have depleted our stocks. We were not planning on re-manufacturing the
> Statue of Liberty or the Dragon, but given the demand we are looking at the
> cost-effectiveness of going back into production. There is no guarantee that
> we will do this, but we will do our best. (As some have noted, certain
> sculptures were also available through toysrus.com, and we hope to make
> items which have previously been LEGO Shop At Home exclusives available on
> retail shelves next year. But that's really not up to us -- we can't *make*
> retailers take anything; they have to *want* to put it on their shelves.)
>
> But as "old" items disappear, new ones appear -- or reappear, as the case
> may be. And I'm pleased to inform you that Fort Legoredo will once again be
> offered, as well as a couple of other items from the old Western/Wild West
> assortment, the Sheriff's Office and the Large Indian Camp. Expect to see
> them online this week, and in the January LEGO Shop At Home catalog (and
> yes, before anyone asks, they'll be available in all LSAH markets...). And
> the Millenium Falcon, which by all accounts has evaporated from the shelves
> (it was in fact discontinued) will also return in early spring exclusively
> through LSAH.
>
> And we have a very exciting 2002 planned for new sculptures, Legends, and
> the like. So there's a lot more to look forward to....
>
> I'll try to make another post or two before then New Year (or at least by
> the first week in January), particularly regarding ways in which we can
> better interact with the community-at-large (and that includes the role of
> LEGO.com).
>
> Until then, Play Well.
>
> Best Regards,
>
> -- Brad
>
> Brad Justus
> Senior Vice President, LEGO Direct
As is normal, the only thing that I caught was you having to wait in line
for making items, so you did as you were suppose to do, either take the heat
or pass it up the ladder.....
You passed it up the ladder. I hope your right, I really do? We need those
LIGHT GRAY items....not dark gray.
Doyle
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Message is in Reply To:
 | | bulks and trees and some new stuff on its way
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| OK, in this message I'll tackle some of the questions (as best I can) that have arisen recently regarding our bulk program. And I'll toss in a couple of other items of interest at the end (no scrolling ahead, now...). Let me say first that our bulk (...) (23 years ago, 17-Dec-01, to lugnet.lego.direct) !!
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