Subject:
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Re: Attack of the ABS addiction
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Newsgroups:
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lugnet.org.ca.rtltoronto
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Date:
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Mon, 14 Jan 2002 10:53:27 GMT
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Viewed:
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521 times
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In lugnet.org.ca.rtltoronto, Calum Tsang writes:
> In lugnet.org.ca.rtltoronto, Richard Noeckel writes:
> > In lugnet.org.ca.rtltoronto, Benjamin Medinets writes:
> > > I guess this weekend, well yesterday, I had a good case of the lego-buying
> > > bug...
> > >
> > > I stopped by Target (in Buffalo, on Walden Ave) just to see what kind of
> > > sales they had (hoping I could get a half-price Lego Express?)
> > > I bought a Solar Explorer (LOM) for 50% off...it was $16 US
> >
> > Your real lucky to get in on those ‘super-sales’ over @ Target where I’ve
> > been readin’ that sales can hit 90% THAT”S TOTALLY CRAZZZZY!!! I've never
> > ever seen anythin’ like that in Canada. It kills me to read the great deals
> > that LFB finds for 75% off, or when U.S. LUG’s go into a store and clean out
> > all the stock cause its just so darn dirt cheep. I don’t understand
> > lost-leaders of that magnitude?!?!? I just WISH I could be there to get in
> > on the deals… :(
>
> I think you're misusing the term "loss leader". In general retail practice,
> a loss leader is a product you advertise below cost to get people into the
> store, so that they'll buy additional items or build customer loyalty that
> is worth more than whatever you took the hit on. Usually, these would be
> low margin, high volume staple products-so you get them in on cans of beans
> at say 20 cents off a buck, yet you nail them with overpriced cheese or they
> check out with fifteen boxes of Weight Watchers entrees and upmarket
> lifestyle products.
You are right Calum....loss leaders are usually staple items slightly below
cost to attract customers into the store,
whereas Clearance sales are used to clean out the stop of a particular line
of stock so you can stock the new item....
>
> Lego might be used as a loss leader, but I don't think it would apply when
> you're cleaning out an entire range (ie, all Lego sets).
>
> My own opinion is that most retailers have switched to automated inventory
> control, which allows for somewhat automatic pricing and sales, or at least
> easy control and observation of inventory levels. Somewhere, somehow, some
> analyst or line manager (or even a script) at head office is seeing no one
> is buying, say, ZNAP, and puts it on sale. This didn't happen as late as
> five to ten years ago, as most of the retail industry still enjoyed a great
> deal of profit margin. Only until recently have retailers started having to
> learn how to play efficiently, especially in Canada-a category killer like
> Home Depot or Walmart* comes in to an area with really good operations
> efficiency (which in retail basically equals inventory and labour control)
> and threatens to kick your ass if you don't get your overstock and wage
> costs down. And I think this is why, we don't see a lot of old sets (bad
> for us) but we do see a lot of sales (good for us).
Yeah, that does suck for us, because Lego no longer puts out good sets
out in the open market....most of them are sold via Shop @ Home.
> *-Ever notice how Walmart never has sales? That's because their efficiency
> is so high. The minute a product drops below a given threshold value, by
> checking inventory outgoing Point of Sale scans, the store server is already
> ordering more from head office via VSAT network. Walmart runs a fricking
> private satellite network for this purpose. Amazing vertical integration.
> I love it. Makes me smile in the morning.
>
> The sales I think come from the fact there's an increased tempo in moving
> product. Sitting overstock is losing money-if you're keeping inventory in a
> warehouse somewhere, or inventory on the shelves and it's not selling, it'll
> cost you more to keep it there, than to ditch it off. Or at least that's
> the mentality most supply chain folks/operations management people I know
> are thinking.
>
> Eventually, this will slow down. Large sales are part of the problem. I
> was at a conference where the Exec VP/CIO of Hudsons Bay/Zellers was talking
> about how Bay Day sales used to work. They eventually realized giving
> people 45% Scratch and Save, Triple Bay Day type affairs meant they
> stretched the buying volume between Bay Days versus sustained numbers.
> People just ended up waiting for Bay Days. So as we've seen, the Bay is now
> headed towards less sales and more "experience" oriented marketing. Sears
> is going upmarket too, though I think that will fail in the long run.
>
> Don't worry about the sales. Canada is a great place for Lego, the GTA is
> even better, and we get our good sales too. I mean, every month or so we
> get a BOGOHP. Ain't that good enough?
>
> Calum
Oooohh Yeah.... I can't wait for the next BOGOHP.....want to buy a couple
of Hiway Construction sets for my Brickbay shop!!! That would be most sweet.
Maybe a Hogwarts Express, if and when Zellers starts stocking them... :)
Ben
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Message is in Reply To:
 | | Re: Attack of the ABS addiction
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| (...) I think you're misusing the term "loss leader". In general retail practice, a loss leader is a product you advertise below cost to get people into the store, so that they'll buy additional items or build customer loyalty that is worth more (...) (22 years ago, 14-Jan-02, to lugnet.org.ca.rtltoronto)
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