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Subject: 
Re: A possible way to get cheaper sets?
Newsgroups: 
lugnet.loc.au
Date: 
Mon, 1 May 2000 23:42:20 GMT
Viewed: 
402 times
  
In lugnet.loc.au, Benjamin Whytcross writes:
James Howse wrote:
Another question is are the store ordering procedures that
flexable? Are there
minimum numbers of sets to order? (I know the smaller ones
come in trays of a
certain number).


Minimum amount vary. Generally sets with a RRP of up to about $8.95 come in
multiples of 6, sets up to $15 (20?) [star wars sets really confuse things
here.. they are up to $25]are generally in packs of 3, and larger ones are
individual.

Are there restictions on range or ratios of
small:large sets
to be observed?

From the info on the order forms, there are no minimum amounts of
large:small sets...Retailers decide what they want, and order accordingly.

This is Toyworld/Toy Kingdoms strength, or so they keep telling me.
If you can order individual sets this way, what's the big deal with a range
of individual sets.

Is there a pricing structure, how cheap do
stores _really_ get
lego, is it  that much of the 40% (or whatever) above
wholesale, after all if
it is a boku moulah earner why aren't more stores into it?

The reason, as I have been informed by a couple of toy stores, that they
were getting out of lego/cutting down, is that you need to have a certain
balance with LA...I think it was $6000. I beleive this is so they don't lose
money (as much money) if a store goes out of business without paying of
their orders. Unfortunately, there is no info about this on the order
forms...All they have is account name and number. Also, with chain stores,
the sets are normally delivered to a distribution centre, requiring
transport and administraion costs to be covered.

From stores I spoke to that stopped/didn't carry Lego they mentioned this
$5000 figure minimum order,so maybe as an initial/seasonal order of new stock
they need to order is this figure, then once that is done they can order
individually. I'm sure the Toyworlds don't have extended lines of credit,
not like the big chains who can dictate 3 months to pay/no interest on their
suppliers.

As to the pricing, the order forms have 3 price categories: Wholsale price
(no sales tax), end price (wholesale price + 22% sales tax), and RRP [and on
the train this morning, I read the legal info on the back of one order
form...Price includes delivery [LA decides carrier and method of delivery],
but any special packaging costs [either decided by LA, or requested] are the
responsibility of the buyer]

An example of a (current) favorite from 1997 price list :)

  set
num   name               w/sale  end cost   RRP    release
5561  Safari rally van   $96.06  $117.19  $167.95  OCT

(order forms only have W/sale price, price lists have all 3, but not an
order quantity)

A wholesale price is a wholesale price probably across the board.
One Toyworld owner thought that the big chains got a special rebate when
sales are on (who knows).
But since Big W which is 10% below RRP only have sales of 10-15% off,
I'd say the (RRP = 40% ABOVE WP) rule applies across the board.
Toystores would not get Lego on consignment (pay supplier when sold retail).

Benjamin, you've seen a order form, what do you recall?

What would you like to know? I've brought all the order forms I have in to
work today [price lists:1996-1997, order forms 1998-1999], and will try to
answer any question about LA's pricing that I can.

Finally, is there a store owner that would put up with the
hassle of doing
this and would it risk his relationship with LA. I mean, a
guy puts in a large
order of lego, for particular sets not, say, a range or
theme. It's unusual
but LA does it, sending a rep to check it out. Rep gets there
and the stock's
not on shelves, Where did it go? Sold already? All of it?
You're not breaking
our price agreement are you? Want some more? come on, if you
got rid of all
that...

Doing this would be no different to them taking several orders for sets that
aren't in their general stock. I believe that LA dump a certain amount of
sets that THEY think will sell on stores like toyworld at the start of the
year, and after that, it is up to the store what they want to order in.[what
I was told at toyworld camberwell]

With the price variations I have seen across the country,I sometimes wonder
about this price control.
Surely the toy store in St.Ives selling 7171 at $270 AUD is more of a concern
selling at 20% above RRP.

Speaking of which, have any toyworlds actually received much in the way of
the 2000 range?

Most of the TK/TW I saw in rural NSW/VIC were up to date with 2000 releases.
In fact the ones in/close to Sydney had them 2-3 weeks ahead of the majors.

James (who wonders if LA cares that we have the 3rd most vocal online
.       community in the world)


Benjamin Whytcross (who thinks they probably don't even know we exist)

pete.w (who thinks they think we are very strange individuals)



Message is in Reply To:
  RE: A possible way to get cheaper sets?
 
(...) Minimum amount vary. Generally sets with a RRP of up to about $8.95 come in multiples of 6, sets up to $15 (20?) [star wars sets really confuse things here.. they are up to $25]are generally in packs of 3, and larger ones are individual. (...) (...) (24 years ago, 1-May-00, to lugnet.loc.au)

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