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<snip>
>
> I was wondeing...how do LEGO work out their prices?
>
> By my calculation, 10152 is being sold at the following:
> $74.99 US is roughly $105 AUS
> £54.99 is roughly $140 Aus
> EURO 79,99 is roughly $136 AUS
> $144.95 AUS
> (About 30% higher outside North America)
>
>
> Now, seeing as the sets are being produced in Europe, WHY are those buying them
> there having to pay so much more? After all, Wouldn't it seem logical that those
> buying from the source should be getting it CHEAPER than those who have to get
> it shipped from the source to an overseas (literally) S@H centre, and then
> forwarded from there?
>
> I COULD be wrong, but it seems to me that the rest of the world is SUBSIDISING
> the LEGO being sold in North America so that they can keep getting the cheaper
> prices.[1]
>
> Is there any truth in this theory...I guess that's up to LEGO to either confirm,
> or to try and explain the pricing discrepencies.
>
> [1] I probably shouldn't be surprised...after all, the only way we hear from
> LEGO is via North American LEGO company sources, and in general LEGO (produced
> in Europe) arrives on sale in North America before it does in Europe...Maybe
> they don't even realise that those who don't live in North America buy LEGO?
>
> Benjamin Whytcross
Benjamin, I believe that the answer is (at least) twofold:
1. LEGO's way of setting prices for different markets is very complex (I believe
that Jake has stated this before), and the price only partially depends on what
the given market will put up with. For example, in North America I think LEGO
has much more competition from lower priced Canadian MegaBlocks than in Europe.
2. TAXES
In europe the Value Added Tax (VAT) is built into the price of the items on the
shelves and Shop@Home. A quick Google search revealed that the VAT is 15% to
25% in various EU countries. In North America, the taxes are added on top of
the purchase price (this helps maintain the illusion that you're paying less).
In the state of Connecticut (LEGO north america is located in Enfield), you'll
pay 6% tax on top of the 75 USD. In other states, the sales tax is different. In
Ontario, Canada, we get the GST and PST for a total of 15%, or the 15% HST in
the Maritime provinces.
While in Poland last spring, I found that prices in an official LEGO store were
about 20% to 30% more expensive when converted into Canadian (or US) dollars. I
think the VAT is about 22%.
I comfirmed this by pricing the 10152 Maersk through different countries on
Shop@Home, including inputting fake addresses in order to get to the final cost
page for each country:
- canadian order from Ontario - 15% tax added
- US order from Connecticut - 6% tax added
- US order from Washington state - 0% tax added
- German order - 0% tax (VAT is built in)
- Australia - 0% tax added
If you buy from a bricks and mortar store in Washington state, or Illinois, or
whatever, you will have to pay the state sales tax. But if you buy from
Washinton state from Shop@Home, there is no sales tax. Go figure!
But in terms timing, I have noticed quite the opposite, ie. stuff appears on the
shelves in Europe much sooner than in North America:
The http://guide.lugnet.com/set/8453 and http://guide.lugnet.com/set/8451
mini technic sets were in stores in Germany in early April last year, whereas in
Canada, they didn't show up until the end of June.
This year, the 5 Ferrari sets have been available from Shop@Home Germany
since mid-April, but in North America, only the large Technic 1:10 scale ferrari
is available (for 2 weeks now I think).
I've gone through some of this research last year, when I discovered that the
prices in Poland and Germany were quite high compared to north american prices.
Hope this helps...
play well
John
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