Subject:
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Re: australia and new zealand, your moment has come!
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Newsgroups:
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lugnet.lego.direct
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Date:
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Mon, 1 Oct 2001 16:43:30 GMT
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Viewed:
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1112 times
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"Peter Callaway" <peter.callaway@stgeorgecl.com> wrote in message news:GKJ527.Gs9@lugnet.com...
> In lugnet.lego.direct, Lawrence Wilkes writes:
>
> Depends on what exchange rate they used to set the prices with initially.
> They can't very well update it daily with the current plummet of the Aussie
> Peso, but your point is well taken. I must say at the moment it is actually
> cheaper to buy the stuff in Australia, so let's all give Jon Hayward a call
> and get him to fill his bags up when he returns!! Compare some of the prices
> at ozbricks.com with S@H UK and you'll see what I mean!!
My understanding was that if you suspected that the currency exchange rates might worsen, and you want to edge against
currency fluctuations, then you would charge MORE for the set, not less.
For example, the prices in UK are on average about 10% higher than the rest of the EU. Lego gave exactly the above
reason when I asked them why. So given know decline and fluctation in the AUD, I would have expected Lego to set prices
higher.
At the same time, they have to match prices to local cost of living, etc, and hence use something like a Big Mac index
(i.e. if a set costs the same price as 2 big macs in the UK, then is should cost whatever the price of 2 big macs are in
Australia).
However, it is complicated in this case by the fact that all the shipments are sent by post from Denmark. This is the
same for the UK. So, Lego's costs are pretty much the same, and all incured in Denmark, irrespective of the final
destination. Any localisation costs, are the same costs - though I guess a little cheaper in Australia.
I shall be watching the prices that Lego charge for shop at home in Australia with interest. If there is a large
difference between Australian and UK prices, then I shall be talking to Lego again to find out why.
regards
lawrence
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Message is in Reply To:
 | | Re: australia and new zealand, your moment has come!
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| (...) Depends on what exchange rate they used to set the prices with initially. They can't very well update it daily with the current plummet of the Aussie Peso, but your point is well taken. I must say at the moment it is actually cheaper to buy (...) (23 years ago, 1-Oct-01, to lugnet.lego.direct)
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