Subject:
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Re: Next year
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Newsgroups:
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lugnet.market.theory
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Date:
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Thu, 21 Sep 2000 16:42:19 GMT
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Viewed:
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905 times
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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
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Message has 1 Reply:
 | | Retailing (was Re: Next year)
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| (...) 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)
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