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Subject: Re: Where Does The Assumption Originate From?

Author: Dan Andersson

Date: 11:27:43 02/22/03

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The reason they charge more is a kind of reverse economics of scale. By having a
large marketing budget, brand recognition and massive outlet penetration they
catch a large part of first time buyers. Keeping stock, marketing and outlets
cost a fair amount of money.  Bureaucracy costs, bosses and R&D. Even their
support and quality assurance cost. Strange considering their fairly basic
level. The basic parts do not get much cheaper when you buy in large quantities.
So their operating costs and profit margin goes on top of more or less the list
price.
 For comparision we might consider Pret-a-porter, Blue Jeans and publishing
industries. Outlet penetration is not as important as mindshare this day and
age. But getting a first buy is. Repeat buys is usually the norm, as people
stick to what they know. Even if they randomly chose it in the first place.
'Garbage Can' theory of consumer selection.
 As for building your own. Modern Lego is as least as complicated. There should
be plenty of sites, books and advice to be got. Building it doesn't take all
that long for an organized mind. I don't know how long it takes me since I don't
clock it. And my mind goes in to a meditative state.

MvH Dan Andersson



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