| |
"Troy Cefaratti" <mnementh@dsl.telocity.com> wrote in message news:GH6wyC.2A5@lugnet.com...
> > So much for that old e-commerce dream of cutting out the middleman and • lowering prices.
> > We should have known it was always going to be more a case of cut out the • middleman and make more profit.
> >
>
> I think you may be overlooking the important point that Lego may notbe
> trying to "cut out" anyone, but rather offer a place where buyers can get
> access to their full line.
>
> I'd bet good money that Lego still makes most of it's profits through
> retail, which is much higer volume than SAH ever could be. Pricing on SAH
> is set high so as not to upset TLCs relationships with the big retailers.
>
> If you are a retailer, and people can get a product you sell direct from the
> manufacturer for 24% less, then what is the incentive for you to carry the
> product?
>
> Just my opinion, but I think SAH sets the pricing at retail in order to
> protect the retail channel.
That's the retail channel that it is protecting by not allowing them to sell all the new juicy SAH exclusives is it?
Or the retail channel that it wont allow, in some cases, to sell the larger sets? Or sell trains? or bulk bricks -
having removed the boxes of bricks from the retail channel.
Oh yes, they are really protecting them alright.
Tell me what incentive it is to a retailer not to allow them to sell your products.
So my point still stands.
SAH is simply a way for Lego to retain more of the profit.
regards
lawrence
|
|
Message has 1 Reply:
Message is in Reply To:
6 Messages in This Thread:
  
 
- Entire Thread on One Page:
- Nested:
All | Brief | Compact | Dots
Linear:
All | Brief | Compact
This Message and its Replies on One Page:
- Nested:
All | Brief | Compact | Dots
Linear:
All | Brief | Compact
|
|
|
|
