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Subject: 
Re: Euro: one currency does not mean one price :-(
Newsgroups: 
lugnet.loc.eu, lugnet.lego.direct
Date: 
Fri, 4 Jan 2002 19:13:49 GMT
Viewed: 
31 times
  
"Larry Pieniazek" <lpieniazek@mercator.com> wrote in message news:GpFDv8.561@lugnet.com...
In lugnet.lego.direct, Juergen Stuber writes:
"Wessel Burgers" <wessel_b@yahoo.com> writes:

To me this comes across as really strange. It is almost as though someone at
LD is making up these prices at random.

I think it's probably decided on a per country basis,
taking into account local taxes, shipping costs and pricing habits
(.99 is much more common in Germany than France, for example).

According to a survey of the Euro in a recent Economist, one of the expected
outcomes of Euro-isation is to make it easier to highlight price
differences. Where the price differences are due to no reason at all, the
expected outcome is that over time they will move closer together. Where the
differences are due to VAT or whatever, the expected outcome is that over
time, pressure will be placed on high tax governments by consumers to remove
the differences that lead to price differences.

With LEGO's European wide e-commerce from Denmark there wont be any local price differences for VAT.

However, they say that they must factor in the costs of the local shop@home telesales operation and any other
localisation like catalogue printing which has local costs. - but hardly accounts for 10% differences (or 20%+ in the
case of the UK)


That was the Economist's assertion anyway. They also said it would take time.

They had some examples in the article of prices that varied a LOT more
widely than this basket of LEGO commodiities do. (car spares for example are
cheap in Denmark and expensive in Germany and cars themselves are expensive
in Denmark and cheap in Germany (or the other way round, I forget))

Denmark isn't in the Euro of course, so this is a poor example.
But we get your point.

And as Denmark isn't in the Euro I guess that LEGO can vary its prices and pretend they are valid.
However, the Krona is fixed to the Euro

regards
Lawrence



Message has 1 Reply:
  Re: Euro: one currency does not mean one price :-(
 
(...) Right, I think that's what The Economist was driving at... that these sorts of inexplicable variances will, over time, either become explicable or become invariant, and that when they become invariant, competitive pressure will tend to cause (...) (23 years ago, 4-Jan-02, to lugnet.loc.eu, lugnet.lego.direct)

Message is in Reply To:
  Re: Euro: one currency does not mean one price :-(
 
(...) According to a survey of the Euro in a recent Economist, one of the expected outcomes of Euro-isation is to make it easier to highlight price differences. Where the price differences are due to no reason at all, the expected outcome is that (...) (23 years ago, 4-Jan-02, to lugnet.loc.eu, lugnet.lego.direct)

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