Subject:
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Re: Bulk Prices!
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Newsgroups:
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lugnet.lego.direct
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Date:
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Wed, 5 Jul 2000 23:39:58 GMT
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Viewed:
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726 times
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That's all well and good, but isn't there a fixed minimum cost below which
one cannot go - IE in order to turn the molding machine on and have it churn
out bricks from the designated mold wouldn't there still have to be a
minimum cost incurred for doing so?
I don't really see any economic sense in turning a machine on to make a
small order, but there's certainly more sense doing it for larger orders.
Also, from the sound of it and the places which LEGO has spread it's
tendrils to, it seems to me like they make things in a minimum lot size in a
multiple of one thousand or a similar minimum run.
For example, if a machine is capable of churning out 150 bricks of type A
out per hour but only 75 bricks of type B per hour because brick type B
takes twice as long to inject as type A, it follows that making the thousand
lot for type B bricks would take them twice as long, and therefore incur a
lot more expense than type A bricks.
Of course, the machines are probably capable of much more than just 150
bricks an hour, but given the sizes available, especially in Technic, of
pieces that they could mold, it would seem that some bricks could take twice
as long as a brick half as big.
I'm speculating, of course, probably they just have to figure out what's
worth the time and what's not worth it, then go from there.
Cheers ...
Geoffrey Hyde
Jeff Elliott <jeffe@telepres.com> wrote in message
news:3963A62D.CA5D009E@telepres.com...
>
>
> richard marchetti wrote:
> >
> > Hey Y'all:
>
> <excellent price / cost analysis snipped>
> >
> > I think we should ALL try to vote with our dollars and hopefully Lego • Direct
> > will take the hint. Don't buy the bulk bricks at these prices unless • you need
> > them for a current project. Buy only the rarer stuff like the plates, • tiles,
> > windows, trees, and some of the roof bricks perhaps -- those are the • tolerably
> > good deals.
> >
> > Let Lego Direct know that price matters to you!
> >
> > -- Richard (this is what happens when you get the sticker shock of • trying to
> > figure out your first bulk order)
>
> A few points to consider in the price analysis:
>
> I believe the 1200 piece buckets, and other, similar offerings, are kind
> of a
> loss leader for Lego; they don't aim to make a profit on them, but
> rather,
> offer them because they encourage people to buy other Lego brand
> products to
> go with them - ones which show a larger profit margin. They also are
> *1200*
> piece buckets, whereas the bulk packs are at most 100 pieces - not the
> same
> kind of scale.
>
> Finally, I'm not sure that they expected the amount of interest / volume
> of
> sales they're seeing - and they would have priced accordingly. Lower
> volumes
> require higher prices to cover overhead, etc.
>
> Hopefully, Lego Direct will be able to offer better prices in the
> future;
> right now they're more-or-less comparable to existing supply sets. I
> personally think they should reward large purchases of single piece
> types -
> that makes their lives easiest. By large, I mean hundreds or thousands
> of
> bricks of one type and colour, or at least very large orders.
>
> The fact of the matter is, while I spent perhaps $250 on Lego Direct, I
> would be likely to spend much more if I felt the prices were more
> advantageous. As it is, I'm "cherry picking" - ordering the items I
> simply
> can't get any other way at a more reasonable price. As the price comes
> down, and the selection widens, I become more and more likely to use LD
> as my source of Lego.
>
> Jeff Elliott
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Message has 1 Reply:
 | | Bulk Sales in the 21st Century
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| HOW TO DO BULK SALES IN THE 21st CENTURY ~~~...~~~ Be prepared, this is long... I hope you find it is worth reading. I think it is time we stopped guessing what The LEGO Group's real costs are. None of us know; period. Some people with actual TLC (...) (24 years ago, 6-Jul-00, to lugnet.lego.direct, lugnet.general) !
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Message is in Reply To:
| | Re: Bulk Prices!
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| (...) <excellent price / cost analysis snipped> (...) A few points to consider in the price analysis: I believe the 1200 piece buckets, and other, similar offerings, are kind of a loss leader for Lego; they don't aim to make a profit on them, but (...) (24 years ago, 5-Jul-00, to lugnet.lego.direct)
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