Subject:
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5% of what? (was: Re: Fed UP!!!!!!!!)
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Newsgroups:
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lugnet.market.theory
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Date:
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Tue, 20 Jul 2004 19:28:01 GMT
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Viewed:
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3882 times
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Hmm, I probably should have changed the title with my previous post, so I’ll do
so now.
In lugnet.market.theory, Leonard Hoffman wrote:
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I remember Brad saying at BF03 that it was 5% of sales. However, much of
those sales are at Walmart, Kmart, Target - which doesn’t collect stats on
who the customer is or for whom the customer is buying (adults for kids vs.
adults for adults).
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That might not matter depending on how they collect their data. If they do so
by customer response forms packed in the sets, or online polls, they’re
bypassing the big stores’ lack of data collection. They aren’t, however,
getting around the likely reluctance of many closet AFOLs to admit that they
are, indeed, buying for themselves. Or those of us who have no problem
admitting to it, but just haven’t bothered to “stand up and be counted” by
sending in such a form (I’ve done a few online polls, but I’ve never sent in any
cards).
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I’d say the AFOL community is probably best guessed by BrickLink
members which is 25k.
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That’s probably a good indicator of the active online AFOL community, but not
AFOLs in general, since many of them won’t even know that such a beast exists.
On the other hand, many of those members are probably still minors (though I’d
argue that anyone who still buys/plays with/builds with LEGO bricks when they’re
in high school can legitimately claim AFOL status by virtue of the fact that
it’s no longer an expected pasttime for his/her age group).
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A good point should be made that different AFOLs spend different amounts of
money on LEGO. For example, I make only 20k a year and I have colossal
student loans, so I really only spend ~$500 a year on lego. Granted, this is
more than your average kid (or parent buying for kid), but only by a factor
of 2 or 3 at most. This is versus someone like Troy who spends MUCH more
than I do, and probably accounts for 10 kids or more per year.
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I think you’re understating Troy’s significance to TLC in terms of buying power.
He may (or may not) physically spend the same dollar amount as ten “average”
kids, but most of his purchasing is done on the cheap, which doesn’t really
affect TLC’s bottom line (unless bought through their S@H service). When
retailers cut prices, they generally soak up the entire dollar loss, while TLC
gets paid the same for that product as they would for the first batch on the
shelves. Exceptions to this would include discount clearance stores like KB,
which often negotiate really cheap purchase prices to unload older product
that’s just sitting around and costing the manufacturer money by taking up
warehouse space.
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Message is in Reply To:
 | | Re: Fed UP!!!!!!!!
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| (...) I remember Brad saying at BF03 that it was 5% of sales. However, much of those sales are at Walmart, Kmart, Target - which doesn't collect stats on who the customer is or for whom the customer is buying (adults for kids vs. adults for adults). (...) (21 years ago, 20-Jul-04, to lugnet.market.theory, FTX)
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