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Subject: 
Re: the problem with retail sales of trains is this...
Newsgroups: 
lugnet.trains
Date: 
Mon, 22 Jul 2002 08:27:52 GMT
Viewed: 
530 times
  
The right way to sell trains is to move to selling individual bits.
For example, you could buy an engine and some track now then later go back
and buy a motor and regulator for the engine, perhaps some rolling stock • or
mabie some accessories.

Think about games consoles. You can't sell anyone the games without first
selling them the console, but once you've sold the console, you can sell
them the various games, extra controllers, etc etc.

It's the same with trains. Sets like 4561 are the games consoles. They
provide the minimum you need to get started: track, regulator, motor and a
train. Once you've sold a train "starter kit", then you have a market for
individual items as people incrementally extend their layout. So, TLC need
to always have one "starter set" in their catalogue.

I don't think that saying that you can buy the components of the starter kit
separately is a satisfactory answer. Mum & Dad aren't going to know which
bits they need, and they don't want to risk Johnnie or Jenny opening up the
present on Christmas Day and then finding out they can't play with it
because Mum & Dad didn't know you needed a Thingummyjig. Mum & Dad want a
simple way to buy one box that says "Lego Train Starter Kit -- everything
you need to get started is in this box". If you make it too complicated for
Mum & Dad, then they will find something else to buy.

To my mind, this is exactly what TLC are doing. The 4561 is the "starter
set" and the rest of the train catalogue is mostly "bits". If you can shop
at S@H, then you have no problem getting the bits. Of course, Jonathon's
problem is that the bits are not available retail and this seems to be
linked to the issue of retailers being reluctant to do so. I think the
problem here is the desire of retailers for "single box" products.  Having
"bits" means that retailers are going to get asked which bits are needed,
which bits go with what bits, and so on. This means the retailer has to be
more knowledgeable about the product, and frankly most of the big retailers
just want the boxes to go on the shelves and sell themselves without staff
assistance and don't cause customers coming back wanting refunds because
they've got the wrong bits.

I would think selling the bits would be a niche market for the smaller
specialist toy retailers, but discussions elsewhere suggest that TLC isn't
doing a great job in its relationship with the smaller retailers. I guess
it's simpler to sell 10,000 units to a big retailer than 10 units to each of
1000 small retailers.

Kerry



Message has 2 Replies:
  Re: the problem with retail sales of trains is this...
 
(...) I don't agree with this analogy, because there's one piece missing. Games consoles are sold as massive loss leaders, then the money is recouped on the accessories (games, controllers, gadgets etc.). The model was developed long ago for selling (...) (22 years ago, 22-Jul-02, to lugnet.trains)
  Re: the problem with retail sales of trains is this...
 
(...) Yeah, you need a "starter set". In fact, my belief is that there should be at least 2 starter sets available at retail. (...) Look at Thomas The Tank Engine Tomica World (the stuff with the blue track). You can get several different starter (...) (22 years ago, 22-Jul-02, to lugnet.trains)

Message is in Reply To:
  the problem with retail sales of trains is this...
 
All you can get (at least here in .au) is the large, expensive 4561 (here in .au, its not usually on sale but even at some of the sale prices US people talk about, its still expensive compared to e.g. a hogwards castle, republic gunship or most (...) (22 years ago, 21-Jul-02, to lugnet.trains)

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