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How to Become a LEGO Distributor

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  • yehuahsyehuahs Member Posts: 1
    I have been thinking about opening an account and again like many the issue is the up front setting up of the account and then on going "business relation" with Lego. But lately have been wondering if you could parallel import, like we have here in OZ will coke cola and the like i.e. like say purchase from traditionally larger or cheaper lego markets like the USA, import the stock into Australia, Canada etc at a cheaper rate then what Lego can and sell it for less than what the multi nationals can....? maybe a co-op of sorts.....?
    I have thought of the same. First off from what I have been told be prepared to be challanged by lego or more specficly the current importers of lego. Also you might have too deal with customs, many countries have two sets of rules one for the importing of items for consumer use and another set of rules for importing for business use. Claims can range from infringement of IP, to fraudlent goods.


  • epbricksepbricks Member Posts: 2
    Hi all, anyone got idea how I could find lego third party wholesalers in US? thanks very much!
  • gmpirategmpirate Member Posts: 1,654
    Hmmm, let me read the thread again and get back to you . . .
  • LegoFanTexasLegoFanTexas TexasMember Posts: 8,409
    @epbricks - I've looked into it, I have yet to see how that makes any sense other than for small local toy shops. The margins just aren't there.

    You get better deals when the big companies do sales than from wholesalers...
  • epbricksepbricks Member Posts: 2
    @epbricks - I've looked into it, I have yet to see how that makes any sense other than for small local toy shops. The margins just aren't there.

    You get better deals when the big companies do sales than from wholesalers...
    I will export them to somewhere else. I believe there is still margin. Thanks anyways!
  • gmpirategmpirate Member Posts: 1,654
    ^ Against Lego policy. Not sure it's a good business model selling out the back door either.
  • LegoFanTexasLegoFanTexas TexasMember Posts: 8,409
    ^ Against Lego policy. Not sure it's a good business model selling out the back door either.
    It may be, but if @epbricks hasn't signed anything, then he doesn't have to much care I suppose.

    My point is that unless you're buying in huge numbers, the discounts and sales offered at retail are often better deals than what you get buying via wholesalers... The Internet has changed that business, I remember actually getting deals via smaller wholesalers in the computer business back in the 90s, but no more, places like Newegg and Amazon have made that darn near impossible.
  • Cam_n_StuCam_n_Stu UKMember Posts: 368
    edited March 2012
    @cutmygrass. So 'grey' importing. It is possible and I've worked for a company that has done it with computer systems from the US, Ireland and what the manufacturer termed 'Emerging Markets' which at the time was Eastern Europe where a (much) higher discount was provided.

    You do get into all sorts of side issues when you do it in volume though, like currency fluctuations, import taxes, customs clearance, insurance in transit and even just off-loading it when it arrives in a container or on the back of the articulated truck on pallets and you don't have a loading bay and your own forklift truck!

    As LTF says I suspect you are often get better deals just buying from an Amazon site in your country of choice and get them to ship the sets to you. As some of the UK forum members have done from Amazon Spain recently.
  • gmpirategmpirate Member Posts: 1,654
    ^ Against Lego policy. Not sure it's a good business model selling out the back door either.
    It may be, but if @epbricks hasn't signed anything, then he doesn't have to much care I suppose.
    Well, whether I signed something or not, I would not want to be involved in a business where my vendor could just cut me off at any time for breaking their resale policies. I never like to tell anyone they can't do something because people can and do find ways, but seems we've kicked this particular horse to death.

    So you go to the extreme and open a B&M Toy shop like Lego requires. You still will not get enough product, at any margin, to justify going to such lengths. And you will find that other vendors will have similar policies as Lego. Why bother with little toy shops when there is Walmart, Target, Toysrus and all the other big name chains getting in on the act at least seasonally. i.e. B&N, grocery stores, etc.

    For these reasons, small toy shops seem to just specialize in odd toys and games not in the main stream. And I don't get the impression its a very lucrative business either. Not that one has to make a lot of money to be happy, but owning a business is tough, success rate is low and risk is high. Imo at least, it doesn't make sense to invest in something that does not have a great upside. Put your money in stocks or Lego and work for someone else. You'll have more time to play with you Lego :P
  • LegoFanTexasLegoFanTexas TexasMember Posts: 8,409

    Well, whether I signed something or not, I would not want to be involved in a business where my vendor could just cut me off at any time for breaking their resale policies.
    You make a very good point... :)

    The poster will never be bothered if he is just doing a dozen sets here and a dozen sets there. If real money gets involved, the big boys will start to care.

    A good example is the recent CostCo lawsuit with Omega Watches, CostCo lost that lawsuit.

    http://arstechnica.com/tech-policy/news/2010/12/supreme-court-lets-ban-on-gray-market-imports-stand.ars
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