Subject:
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Re: Lego prices?
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Newsgroups:
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lugnet.general
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Date:
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Wed, 14 Jan 2004 01:11:12 GMT
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Viewed:
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854 times
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In lugnet.general, Douglas Brod wrote:
> In lugnet.general, Gary Tabener wrote:
> > Has anybody ever compared Lego prices between US and UK or any other country
> > for that matter, or am I approaching a touchy subject here.
> <snip>
>
> I've seen debates online about this, but one thing that really sticks out in my
> mind is the fact that Europeans usually have some kind of tax (GAT?) "included"
> into the price of each item you buy...basically, it disguises the fact that you
> are paying taxes. In the US, we have a sales tax that is added onto the price
> of an item at the cash register or time of billing, and is not included in the
> posted price. Sales taxes differ from state-to-state and city-to-city; also,
> states can't charge taxes on purchases made in other states, so I can buy from
> Shop@Home in Connecticut and not pay their sales taxes.
Clarifying a bit:
The tax you're referring to in the EU is VAT (Value-added tax), which is a
percentage of every item you buy; it varies among countries and items, in my
country it is currently 19% for LEGO - I would not be surprised if it were
higher in the UK. It is not, however, in any way "disguised". In every receipt
you can find the percentage of the cost which is due to the tax, and in some
situations you can have it back on the airport when departing (dunno how this
works, though).
It's actually hndier than the way to calculate the sales tax: if one has to pay
VAT anyway, why not know the *full* price in advance?
> There may also be extra costs (extra taxes, higher real estate prices, labor
> costs, etc.) associated with operating Shop@Home in the UK. One other thing:
> although Lego bricks aren't made here, they are packaged here...that may save a
> little money, since bulk parts will take up less space than half-empty boxes in
> a shipping container. I just bought some stuff here on clearance, and the boxes
> say "COMPONENTS made in Denmark and Switzerland" (CAPS are mine)...that is, the
> bricks themselves are made overseas, but the sorting and maybe even
> package-printing are done here.
True.
That however does not explain why LEGO in Denmark is more expensive than most
anywhere else except for the UK.
Actually, I'm inclined to think it's just a strategy to gain more and more
consumers in the US, given that the european market is pretty much stabilized by
now and brand-loyalty levels are very high (not to mention the availability of
clones is reduced)
Pedro
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Message has 3 Replies:
 | | Re: Lego prices?
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| (...) That's interesting. So, in the EU the tax is included in the price tag/sticker, but disclosed in the receipt? Things tend to be a bit more dynamic here in the US so that's not as easy to implement. The sales taxes actually vary from state to (...) (21 years ago, 14-Jan-04, to lugnet.general)
| | | Re: Lego prices?
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| In lugnet.general, Pedro Silva wrote: <snip> (...) I just came across this site: (URL) around here, and one finds that health care is paid for (I think my health plan co-pay just went up to $25 per visit, in addition to the premium taken out of my (...) (21 years ago, 14-Jan-04, to lugnet.general)
| | | Re: Lego prices?
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| In lugnet.general, Pedro Silva wrote: <snip> (...) Yep, I meant VAT. I think Hong Kong has "GST" which is the same thing, and they advertise that you can get some of that money back somehow if you are a tourist. (...) Can't argue with that. But we (...) (21 years ago, 17-Jan-04, to lugnet.general)
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Message is in Reply To:
| | Re: Lego prices?
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| (...) <snip> I've seen debates online about this, but one thing that really sticks out in my mind is the fact that Europeans usually have some kind of tax (GAT?) "included" into the price of each item you buy...basically, it disguises the fact that (...) (21 years ago, 12-Jan-04, to lugnet.general)
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