Subject:
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Probable reason for our poor/small range (was RE: Probable effect of GST on LEGO)
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Newsgroups:
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lugnet.loc.au
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Date:
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Thu, 27 Apr 2000 00:57:42 GMT
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Viewed:
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403 times
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Possible explanation of why we don't get soccer sets in Aus (There could be
some minor errors in this, but I believe [based on past phone-calls to LA]
that it is accurate):
In order to get Lego sets in Australia, TLG sends images of all sets being
produced for the next year [except promo's like Shell, which are shown to
Shell's head office only]. These images are then shown to the buyers from
the retail chains eg Coles-Myers[Myers, K-Mart, W4K], Woolworth's chain
[Big-W], Toy world, Toy Kingdom, and any others I can't think of. These
buyers look at the images [And probable costs too, I'd assume] and say 'Yep,
That should sell' (Hopefully whoever said that about time-cruisers isn't
still a buyer), 'Yep, we think kids will want that', 'Nope, Costs too much',
or, in the case of the soccer sets/znap/scala, 'Nope, Don't like it myself,
so I've decided kids in Australia won't like it' [Remember, this could be
wrong, but you probably get the general idea]. LA then takes this info, and
puts together the range of sets to be released in Australia (And adds in
small 'impulse' sets [$4.25 or so RRP]. This is now the range of sets
released in Australia
eg.
Global range from TLG => LA => Store buyers => Retail range
OR
Global range from TLG => LA => Store buyers | [notice brick wall...sometimes
it also comes just before previous arrow too.]
Unfortunately, until we infiltrate this store buyers club, we have no hope
of getting the sets that would sell instead of the sets that will still be
on the shelves in a year or so. the only way around this is to go to every
Myers/Toyworld/Toykingdom/place with a Toy department, and try to order the
soccer sets. This will result in LA getting a large group of orders for the
sets, and hopefully they'll be added to the range. [OR, we may actually see
them later in the year anyway, as it takes at least 2 months for the set's
to arrive here, compared to Europe. The order forms at the moment are for
sets released up to May/June, and as the soccer sets are being released in
Europe in June, they may be in a later order...we live in hope]
Remember..IANAL, and as you probably guessed, don't work for TLG, or as a
retail buyer :(
Benjamin Whytcross
BWhytcro@PacificAccess.com.au
Ph: (03) 9856 5282
Directory Technology Pty Ltd
1/436 Elgar Road,
Box Hill, 3128
Growing older is compulsary..Growing up isn't :-)
> -----Original Message-----
> From: Santosh [mailto:santosh@student.unsw.edu.au]
> Sent: Thursday, April 27, 2000 10:36 AM
> To: lugnet.loc.au@lugnet.com
> Subject: Re: Probable effect of GST on LEGO
>
>
> Nicely explained, I like the diagrammatic use of arrows. BUT
> can you use them
> arrows to logically explain why we aren't getting the soccer
> sets in Australia?
>
> Even my sister pointed them out in the catalogue and asked me
> to get her some.
>
> In lugnet.loc.au, Benjamin Whytcross writes:
> > The way I see it, Lego SHOULD decrease in cost by about 10%. • This is due to
> > the way the GST is worked:
> >
> > Currently, each set is imported by LA. This is then sold to • the retailer
> > with 22% wholesale sales tax. The RRP is then 40% on top of • this price.
> > [I've got order forms from LA for 1996-1999, which show • cost, Wholesale, and
> > RRP, and this is the approximate values...RRP varies between • 40-45%, but the
> > 22% is fixed]
> > eg $1 cost => $1.22 wholesale => $1.71
> >
> > BUT, with the GST, LA only add 10% onto the set cost. The • retailer pays this
> > price, but before calculating their cost, remove the GST • component, as they
> > get this rebated from the government [This is something that • the papers fail
> > to take into account when showing price rises from the GST]. • This returns
> > the cost to the retailer to LA's cost. Add to this the 40% • for RRP, and then
> > 10% for GST, and the price is about 15-20% cheaper than pre GST.
> > eg $1 cost => $1.10 GST => $1 'wholesale' => $1.40 RRP => • $1.54 retail with
> > GST.
> >
> > result about 10% cheaper. [at least that's how it • looks...IANAL/Accountant]
> > If anyone sees any errors/incorrect • assumptions/calculations, let me know,
> > but that is the way I see the cost going.
> >
> > Benjamin Whytcross
> > BWhytcro@PacificAccess.com.au
> > Ph: (03) 9856 5282
> > Directory Technology Pty Ltd
> > 1/436 Elgar Road,
> > Box Hill, 3128
> >
> > Growing older is compulsary..Growing up isn't :-)
>
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