Subject:
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Re: A piece everyone needs lots of... Chairs.
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Newsgroups:
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lugnet.off-topic.debate
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Date:
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Tue, 23 May 2000 18:41:31 GMT
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Viewed:
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616 times
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In lugnet.general, Mike Poindexter writes:
>
> Mike Petrucelli <lordinsanity@usa.net> wrote in message
> news:Fv0vCK.AnM@lugnet.com...
> > Wha- ?! Lego could sell almost all their parts at the .01 to .02 price • ratio
> > that the bulk tubs have and still turn a healty profit.
>
> Uh... NO. Not that I am looking at production figures, but it does make
> sense to market the tubs as a loss item, as it prevents inroads from
> competitors. Lego makes their money from high profit sets and tubs would
> not be one of those things.
Yeah right. Not even TLC would be dumb enough to sell something that doesn't
generate profit. Molded plastic does not cost alot to produce once you have
the eqipment and molds.
>
> > <Rant mode on> CDs
> > were designed by the record industry to be a cheaper alternitive to • Records and
> > obviously DVDs are far cheaper to make than VHS yet people are stupid • enough to
> > pay more for them. If people refused to pay such a high price for • merchandise
> > then the companys would sell it at a much lower but still hightly • profitable
> > price. <Rant mode off>
>
> I buy DVDs not because of stupidity but because they are better. I bought
> CDs for the same reason. If somebody makes a better mouse trap and can do
> it chepaer than the other way, does he have to sell it for less? No. It is
> a free market. (Collusion - which is illegal - is the likely reason CDs are
> still more expensive than tapes now)
That is my point though. DVDs cost far less then VHS and were designed to be
marketed as such, just like CDs.
>
> > Well, I never pay more than $0.10 to 0.11 a piece for normal sets. I do • most
> > of my shopping durring Ames' and K-mart's frequent sales. I would make a
> > slight exception if the set contained GOOD large pieces. (Good large • pieces
> > are ones that can NOT be made out of existing parts.) Anyway in a Lego • set one
> > has a multitude of parts in various colors with high quality printed
> > instructions. Ordering a few thousand of one part in one color should be
> > significantly cheaper.
> >
> > -Lord Insanity
>
> Ordering a few thousand parts that require one "set-up" are not necessarily
> cheaper than a run of a nicer production set that has millions of copies
> made. A prime example of this would be the Guild of Bricksmiths' sets.
> Even without design costs, the labor per set for the small run items is
> exorbitant.
You forget that I estimated an agraggate order to be 10 million as a bare
minimum. At that level $0.04 a brick would gross $400,000. As the machines
and molds already exist their cost to producd should be well below $100,000
probably close to $10,000 for raw materials. Anyways, Point being they would
still make a healthy profit. Now times that by the 30 (?) parts a month they
are contemplating offering.
-Lord Insainity
> (FUT: debate)
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Message is in Reply To:
 | | Re: A piece everyone needs lots of... Chairs.
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| Mike Petrucelli <lordinsanity@usa.net> wrote in message news:Fv0vCK.AnM@lugnet.com... (...) ratio (...) Uh... NO. Not that I am looking at production figures, but it does make sense to market the tubs as a loss item, as it prevents inroads from (...) (24 years ago, 23-May-00, to lugnet.general)
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