Theory : 2159


Marketplace / Theory / 2159	2158 \| 2160

Subject:	Re: Should we be worried about shop@home?
Newsgroups:	lugnet.general, lugnet.loc.uk, lugnet.market.theory
Date:	Sat, 28 Jul 2001 15:39:33 GMT
Viewed:	19 times

> 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. Troy

Message has 1 Reply:

		Re: Should we be worried about shop@home?
"Troy Cefaratti" <mnementh@dsl.telocity.com> wrote in message news:GH6wyC.2A5@lugnet.com... (...) 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 (...) (23 years ago, 28-Jul-01, to lugnet.general, lugnet.loc.uk, lugnet.market.theory)

Message is in Reply To:

		Should we be worried about shop@home?
Right now most folks seem pleased with shop@home. - Availability - Increasing range of products - Exclusives - Even old warehouse stock. All good stuff. However, I can also observe (especially here in UK) - decreasing stocks in bricks and mortar (...) (23 years ago, 29-Jun-01, to lugnet.general, lugnet.loc.uk, lugnet.market.theory)

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