Subject:
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Re: Star Wars on DVD
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Newsgroups:
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lugnet.off-topic.debate
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Date:
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Wed, 5 Jul 2000 18:26:06 GMT
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Viewed:
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603 times
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In lugnet.off-topic.debate, Mike Petrucelli writes:
> In lugnet.off-topic.debate, Larry Pieniazek writes:
> > In lugnet.off-topic.debate, Mike Petrucelli writes:
> >
> >
> > > If anyone doesn't think the Lego Company could sell us peices at
> > > $0.02 and still be making a huge profit they are delusional.
> >
> > Sign me up as delusional, I guess.
> >
> > Except under very tightly controlled and special conditions, an across the
> > board price of 2 cents is just not doable by TLC and if you think it is, I
> > posit that you just may not know everything there is to know about how • complex
> > fulfillment is.
>
> Considering that actuall cost (including packaging etc.) is less than one • tenth
> of a cent per "brick" when produced in the quanities TLG does, I disagree. It
> would probably be even less if it wern't for the high quality and tolerence
> levels TLG uses.
First, cite your .1 cent figure, please. Do you have access to TLC tooling and
raw material costs? What's the burden rate or are they using fully allocated
costing, and how much of the R&D budget is attributtable to each piece? I'd
like to see a little detail before I buy your .1 cent manufacturing PLUS
packaging cost...
Second, like I said, you're not too up on fulfillment processes, are you? Do a
little retail study to come up to speed on how little the manufacturing
represents of the total cost to sell goods at retail, and then get back to us.
How did you plan to give Johnny his one brick for 2 cents when Johnny calls up
CA and wants it?
Again, it's only under carefully controlled conditions that you even have a
prayer of hitting 2 cents.
And to tie this back to CDs, were you planning on buying 1000 copies of the
same CD or not?
++Lar
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Message is in Reply To:
 | | Re: Star Wars on DVD
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| (...) Considering that actuall cost (including packaging etc.) is less than one tenth of a cent per "brick" when produced in the quanities TLG does, I disagree. It would probably be even less if it wern't for the high quality and tolerence levels (...) (24 years ago, 5-Jul-00, to lugnet.off-topic.debate)
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