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In lugnet.market.theory, Todd Thuma wrote:
> I read a similar article in another publication about a month ago and it upset
> me then. I think it was in Newsweek.
snip
> Todd
Another factor involving big-box retailers is shelf-space spiffs (from the manf
to the retailer). I'm pretty sure that WM charges for prime location end-caps.
The manf's prolly pay WM off in extra product rather than real dollars.
Somewhere, its been a while, I remember hearing that the typical wholesale cost
of LEGO to a mass market retailer (like WM) is more like 50% of MSRP. Recently,
I've noticed MSRP creeping up and I wonder if the wholesale cost kept pace, or
this was simply a subterfuge to creep down the wholesale pct while keeping the
manf's cash flow steady. Even if the wholesale is typically 50%, TLC must really
shave margins on licensed products because there is a licensing fee built in
somehow.
Ray
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