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In lugnet.general, Lawrence Wilkes writes:
<snip>
> So my point still stands.
> SAH is simply a way for Lego to retain more of the profit.
>
> regards
> lawrence
(IMHO / ymmv) Shop at Home is both a profit and a cost center. Having people to
answer the phones, take order, package and ship does not come for free. I do not
know how TLC does the internal dollars, but I would not be surprised if the
manufacturing division 'wholesales' the product to the S@H division at or about
the same discount from MSRP as they do to retailers of comparable size. That way
they can tell where the corporate profits (or losses) are flowing from. The
singular advantage is that S@H gets some products that do not appear elsewhere.
However, note the 'German' exception to the Metroliner reissue. I wonder how TLC
treating the German retailers differently than others (in the EU) sits with the
EU trade governance.
Ray
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