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3) Bulk orders, Price comparison & profits (Lego)

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This article is from the Lego FAQ, by Tom Pfeifer pfeifer@fokus.gmd.de with numerous contributions by others.

3) Bulk orders, Price comparison & profits (Lego)

Since 2000, LEGO offers a limited assortment of LEGO elements in bulk
through LEGO Shop At Home. See http://www.lego.com/bulk/.

The profits of the company are falling in the last years. Reasons are
weaker demand due to interest in computer-based toys and video games.
LEGO itself was a bit late with their computer development.

LEGO will cut 1000 jobs of its 10000 employees worldwide. Half of the
workforce is based in Denmark. They will focus also on opening more
theme parks worldwide, in addition to Billund, Windsor, Carlsbad.

LEGO, privately owned by the Kristiansen family, claims not to have
had a loss since it was founded. Look at the optimistic photograph of
CEO Kjeld Kirk Kristiansen.

          1992       1996          1997
Sales     US$ 1000M  US$ 1200M  US$ 1200M
Profits   US$  100M  US$   78M  US$   10M
or in DKK:
Sales                DKK 7600M  DKK 7600M
Profits              DKK  470M  DKK   62M

Somebody calculated the price per piece in the 'old days' as $0.10.
Today it may be between $0.10 and $0.30. Count, calculate and mail me
(Tom) your comments.

LegoLand, Billund, Denmark is reported to sell at list prices, no
factory discounts.

 

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