Subject:
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Re: Poor Service to Toy Shops = No Lego
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Newsgroups:
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lugnet.market.theory
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Date:
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Tue, 4 Jun 2002 03:45:17 GMT
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Viewed:
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1961 times
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"Frank Filz" <ffilz@mindspring.com> wrote in message
news:3CFAC2CB.538A9874@mindspring.com...
>
> This got me thinking. Is it actually worth it to a large company like
> TLC to deal with small stores? On the surface, it would seem that the
> ROI is much higher selling to the large chains. So the question is what
> benefit does TLC get out of smaller stores? I'm
This is why many large manufacturers (outside of the toy industry atleast)
use "master distributors". Small / individual companies that are not big
enough to order product directly from the manufacturer are instead sent to
one of a few master distributors to get thier product. The manufacturer
then only has to supply the master distributors, which are in effect on the
level of the big chain chains. This solves the manufacturers problem of not
being able to deal with thousands of individual stores.
In this scenario, the small shops do pay more for the product then the large
chains, but i'm guessing that this is the way it is anyways. I've always
wondered why Lego hasn't had one of the big train catalog companies
distribute the Train line, or act as a master distributor for getting the
line into all the small hobby shops. I do believe that they would make a
killing if they could get the full train line out to where the hobbiests
could get it.
Troy
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