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In lugnet.lego.direct, Ian Sinclair writes:
> HOW TO DO BULK SALES IN THE 21st CENTURY
Ian, I think you started off on the right premise--we're all guessing. But then
you go on to assert that your scheme would be cost-effective. What makes you so
sure? You've set forth a tidy scheme, but the numbers are still an unknown.
Can be it left unattended? It's a linear assembly line, what about other
topographies? Airports do more complicated routing of baggage. Have you tackled
the permutations of parts and colors and customers? Brad has always indicated
that selection will be limited and seasonal. Maybe you should run some computer
simulations.
In "The Ultimate Lego Book", there is some description of Lego's parts halls
(and the need for only occasional workers on duty.) Have you read this book?
It's not clear that you've taken advantage of it.
I tried Dissertation Express at www.umi.com and although 5 dissertations used
"Lego" in the title, none were about the company.
Keep in mind that Lego is not that big a company. It sells less than 10 billion
krona! (more than $1B USD.) It's dwarfed by Hasbro! (US$4B) Why Lego doesn't
(does it?) own the injection molding company? It would be a big risk tangential
to their core business. They can't consume but a tiny fraction of the world's
ABS molding machinery (consumer products are a mere 10% of worldwide ABS
manufacture ***). Lego has already problems forecasting demand for its core
brands.
*** Source: _The Chemical Book_. Bear Stearns & Company. 2000. There is a lot of
other good information in this book which I intend to bring up.
Here and now, Lego AS is making a small trial of bulk ordering. We don't know
how much they must sell to prove the concept or break even. I suggest we order
as much as we can afford from it to send a signal.
Finally, being a businessperson, and manager, you must have a better approach
than demanding "lengthy responses" from strangers. We LUGNETters have time for
all this uninformed debate, but just try to get 5 minutes of Mr. Justus' time
with an approach like that?
-Erik
just another engineer hired out to Wall Street
P.S. What's the cost per ton of ABS these days? A homework assignment.
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Message has 1 Reply:
 | | Re: Bulk Sales in the 21st Century
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| Erik, you raise many excellent points. I outlined the core idea, the plan is in the details. Some thoughts on what you have said. (...) Erik, if TLC has production lines than currently run unmanned, there is no reason a different organization of (...) (24 years ago, 6-Jul-00, to lugnet.lego.direct, lugnet.general)
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Message is in Reply To:
| | 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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