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Subject: 
Re: Next year
Newsgroups: 
lugnet.market.theory
Date: 
Thu, 21 Sep 2000 16:42:19 GMT
Viewed: 
872 times
  
In lugnet.general, Kevin Zwicker writes:
<snip>
Hello again,

Sorry about replying to my own post, but I remembered something else that the
rep told me. TLC gives stores permission to put their products on sale. It
seems that when store discounts or deep-discounts our favorite toy, TLC takes
the hit profit-wise. In other words, the store keeps its regular profit margin
and Lego absorbs the loss.

Just thought that I would share the info...

Hmm.  Interesting.  I would *guess* that this is only partly right.  It seems
reasonable to me that if LEGO tells a store to put set X on sale, then LEGO
takes the hit.  But at the same time, there are store-wide sales (Bay Days
comes to mind, or Zeller's 'early bird' sales on (some) Saturday mornings)
which I can't imagine LEGO taking the hit for, or having any say in.

There have also been reports of individuals talking store managers into a
discount, or a deal.  LEGO clearly isn't involved in that kind of deal, and
would almost certainly raise a holy squawk if someone told them they were
getting dinged for a retailer's decision.

Ah, the murky and troubled waters of the retail industry... :)

James



Message has 1 Reply:
  Retailing (was Re: Next year)
 
(...) margin (...) I wouldn't be surprised if LEGO retailing is similar to the automobile industry. The manufacturer sells the sets/cars to the retailer/dealer for a specified price and provides pricing stability through the MSRP. Retailers/Dealers (...) (24 years ago, 21-Sep-00, to lugnet.market.theory)

Message is in Reply To:
  Re: Next year
 
(...) Hello again, Sorry about replying to my own post, but I remembered something else that the rep told me. TLC gives stores permission to put their products on sale. It seems that when store discounts or deep-discounts our favorite toy, TLC takes (...) (24 years ago, 21-Sep-00, to lugnet.general, lugnet.castle, lugnet.technic, lugnet.sports, lugnet.town)

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