Subject:
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Re: bulks and trees and some new stuff on its way
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Newsgroups:
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lugnet.lego.direct
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Date:
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Wed, 26 Dec 2001 22:12:35 GMT
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Viewed:
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1097 times
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Hmmm... ;) They should give us back Blacktron I. sets ! ;))
Good luck to all LEGO members!
Rene
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.
>
> 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.
>
> 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.
>
> 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
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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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