Subject:
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Re: The breadcrumbs from the masters table
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Newsgroups:
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lugnet.lego.direct
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Date:
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Fri, 19 Mar 2004 20:49:39 GMT
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Viewed:
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3046 times
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On Fri, 19 Mar 2004 16:34:53 GMT, "Frank Filz"
<ffilz-lists@mindspring.com> wrote:
>
> "Christian Treczoks" <ct@braehler.com> wrote in message
> news:HutpDo.1ry4@lugnet.com...
> > Matthew Miller wrote:
> > > Christian Treczoks <ct@braehler.com> wrote:
> > > > > EURO 5,49/ DKK 44.95/ USD 4.99 /GBP 3.75
> > > > Again, we europeans are shortchanged. Why? USD4.99 is worth about
> > > > EUR4.00, and not EUR5.49. As with the retail prices, we subsidize the
> > > > American market...
> > > Are taxes included in the Euro price? They're not in the US one.
> > OK, but it's not as if we had 38% sales tax here...
>
> Perhaps, but what does the VAT do? Are the labor costs for running the
> distribution center more? It's really hard to compare prices in two
> countries because of different tax structures, different labor costs, etc.
> Of course the US and Canada have a well entrenched competitor to LEGO which
> may also affect pricing, does Europe have a similarly entrenched competitor?
>
> Frank
I think that's hitting the nail on the head. In Europe for the most
part Lego still have their patent. Megablocks are available in some
countries but have yet to make an impact. Megablocks and other
competitors in the US are the only likely reason to keep Lego prices
so low. As mentioned before, production is mostly based in Europe, so
there must be some shipping costs for the US. As far as I know wages
in the US are higher than in Europe, so that can't explain lower
prices. The differences were always there, but the margins have been
blown up with the recent dive of the Dollar value against the Euro.
By the way the price in DKK converts to EUR 6,03 so the danish are
even worse off than we are. The GBP price equals EUR 5,59 so there's
not much of a difference there.
Duq
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