Subject:
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Re: According to TLC...
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Newsgroups:
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lugnet.lego
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Date:
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Wed, 22 Sep 2004 16:25:21 GMT
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Viewed:
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3345 times
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In lugnet.lego, David Eaton wrote:
> In lugnet.lego, Christian Treczoks wrote:
> > So we have less sales at lower prices on one side of the pond and more
> > sales at higher prices on the other.
>
> I think one issue is that most Americans are cheapos. How much we've been
> trained to spend on toys for our kids is (I'd guess) different than in Europe. I
> dunno how far reaching clone bricks are, but here in the US, there's a lot of
> competition with MegaBloks who charge ... uh... I dunno, maybe 1/2 or 3/4? of
> what the comparable Lego set would be. So most parents take one look at the
> price tag and buy the cheaper thing. Heck, even most AFOL's seem to wait for 25%
> off or better deals before we'll buy something.
>
> But something else I don't see in your numbers is cost. Europe may produce 60%
> of revenue versus the US with 30%, but how much cost goes into supplying Europe,
> being that it's made up of lots of different countries, each with their own
> currency, language, etc. US is fairly easy by comparison. If Europe produces
> 60%, but costs 60%, and the US produces 30% and costs 30%, then it's perfectly
> balanced with the existing prices.
>
> DaveE
And this is the first time that the competition is mentioned. As far as I know
(I'v been to dutch, german, belgian, british and danish toystores), there is
almost no competition from other (clone) brands. That could account for the
lower prices in the US.
About the costs: the costs for different layers of sales companies may affect
prices of LEGO sets in the stores. But how can it affect prices of LEGO sets
that I buy _directly_ from the company? Shop@home prices are the easiest to
compare for me and even there the EU prices are way, WAY higher than US prices.
(not all sets, but some sets)
It was also mentioned that the US "has a LEGO factory", so the prices could be
lower. Correct me if I'm wrong, but there are _several_ factories in europe,
shoul'dn't our prices be lower then?
Oh and apart from some "strange" countries 1), we have one currency now in the
EU; the euro. So that argument fails as well.
No, apart from the stronger competition from clone brands, I see no direct
reason for the differences in set prices.
However, I will admit that my experience with international sales is limitted to
a european computer manufacturor that sells almost exclusivly to european
countries. And the reason that the same computer could cost almost twice as much
in Belgium as it does in the Netherlands was, and I quote a collegue from
Marketing:"because we get away with it!".
/\/\ark "gonna pay the high prices anyway if the set is good enough" de Kock
1) this is ment in a funny way. I think those countries made the better
choice...
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Message has 1 Reply:
 | | Re: According to TLC...
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| (...) Generally, S@H prices reflect the markets they're sold in, not the cost to Lego. Let's say a toy store buys a set from Lego at $10 per unit, sells it at $20 per unit as their markup. Lego "sells" the product to S@H for $5 per unit, and can (...) (20 years ago, 22-Sep-04, to lugnet.lego)
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Message is in Reply To:
| | Re: According to TLC...
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| (...) I think one issue is that most Americans are cheapos. How much we've been trained to spend on toys for our kids is (I'd guess) different than in Europe. I dunno how far reaching clone bricks are, but here in the US, there's a lot of (...) (20 years ago, 22-Sep-04, to lugnet.lego)
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