Subject:
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Re: Question on Ep. 2 set releases
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Newsgroups:
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lugnet.market.theory
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Date:
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Wed, 13 Feb 2002 19:24:48 GMT
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Viewed:
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3137 times
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In lugnet.starwars, Andrew Burt writes:
> I'm posting this for question feedback and/or discussion. Has anybody
> considered that a larger portion of the Star Wars line will not be offered
> through the regular retail chains?
>
> From a business perspective, why would Lego want to sell very popular sets at
> wholesale when it can sell through their own distribution channels at retail?
Supply/Demand.
>
> Retailers definitely want product to sell, so the company has previewed a good
> selection of toys for that market. Offering product to Wal-Mart, Target,
> Zellers, etc... is good for volume, but can the company profit just as much by
> selling at retail prices through the web-site and telephone orders?
> If the current Shop@Home exclusives are doing great, I'm assuming they could
> accomplish the same success with a wider variety of sets (especially SW Ep2).
> "You buy a set off the shelf, get all excited, open the box, find an insert
> showing more stuff not available at regular retail, get all excited for a
> second time, rush to the computer with your credit card..."
Since you sell less, the R&D costs are higher per unit thus reducing profit.
>
> I hope I'm totally off base since Zellers BOGO sales are the only thing that
> has allowed by collection to grow and buying sets in USD is just no fun for us
> Canadians. Just wondering if anybody else has had similar thoughts/fears.
>
> Thanks.
Jude
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