Subject:
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Re: LEGO Brick Masters Launches!
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Newsgroups:
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lugnet.lego
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Date:
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Wed, 22 Sep 2004 15:10:49 GMT
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Viewed:
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3203 times
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In lugnet.lego, Jon Gilchrist wrote:
> In the world of international commerce the cost of the actual product (the
> bricks and the box) is likely a very small part of the retail cost.
Packaging often costs more than the product it contains. Also, in retail
marketing, about half of the final sale price goes to the store, and most of
that is spent covering overhead.
> Some of the reasons products *might* be cheaper in the USA is that we
> have a factory here,
We have a packaging plant. No bricks are molded outside of Europe, and all
European product is likely packaged in Europe (as are many early-release US
copies)
> Everything costs money, and when you have a large population to spread
> those costs over, it makes the end result cheaper. That's why so many
> companies want to sell in China - they have over a billion people.
I suspect that the biggest influence on MSRP structure is the retailer
companies. The larger the company is, the more product it can buy, the lower
wholesale price and MSRP it can negotiate (yes, retailers do negotiate MSRP).
In Europe, the currency may be largely standardized, but the market is still
heavily divided by national borders, so the more store chains they have to
negotiate with to set the Euro MSRP, the higher it's going to end up (yes,
Germany, the 2nd largest consumer-nation of LEGO product, is probably getting
hit with higher LEGO prices because of the EU).
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Message is in Reply To:
 | | Re: LEGO Brick Masters Launches!
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| (...) This is largely an apples and oranges comparison. In the world of international commerce the cost of the actual product (the bricks and the box) is likely a very small part of the retail cost. For starters, it is likely that there are three or (...) (20 years ago, 22-Sep-04, to lugnet.lego)
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