Subject:
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Re: aust. customs and duty, lego & GST
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Newsgroups:
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lugnet.loc.au
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Date:
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Tue, 14 Mar 2000 04:45:16 GMT
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Viewed:
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783 times
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In lugnet.loc.au, Santosh Bhat writes:
> WOW!!
>
> This is fascinating.
>
> In lugnet.loc.au, Peter Callaway writes:
> <SNIP>
> > LEGO is shipped in bulk, so $20 p&h is a bit steep for each set. I can get a
> > 40 foot sea container shipped from the US to Australia for about $7,000.
> > That's 72.5 cubic metres of volume. Take an average box size of say 30cm x
> > 25cm x 7cm, and applying an 85% bulking and storage factor (that's real
> > generous), that's room for 11,740 sets, or about $0.60 per set. OK, ad a few
> > dollars for packing and unpacking the container.
>
> Bear in mind that our Lego gets shipped from Europe I believe, although there
> was talk of plan for a factory in Asia (perhaps Korea?) for Lego Products. I
> thought I remember seeing this on LEGO's Press release quite a few years ago.
>
> If the containers do indeed come from Europe the cost would be even greater
> then.
Not necessarily. I've priced Antwerp to Australia (with a layover in
Singapore) and it's quite respectable.
> > So if I buy 11,740 sets of 7140 (comparable size to set dimensions quoted) in
> > the US for MSRP of US$29.99, that's AUD$576,240 (after converting using
> > USD$0.611 = AUD$1.00). Multiply by the duty and you get $764,670. Add $7,000
> > for shipping, $4,000 for packing/unpacking the container and $20,000 for
> > distribution of the sets ($24,000 worth of labour which is about 750 man
> > hours (based on $32/hr which includes all on-costs), or 3.6 minutes per
> > box), you have a total cost of $795,670. Factor that by sat 128% for profit
> > and
>
> Hope you're not giving something away there Peter ;)
Hmmm... maybe I knew that someone may think that, so I increased it to give an
artificially high P/O margin, in which case you'd overestimate our M/U, giving
you a false sense of security. Or perhaps, thinking you might twig to this, I
dropped it, so you'd drop it again under the mistaken assumption that I'd
actually increased it, so you'd underestimate our M/U, sending you into a
pricing panic. Ohhhhhh, mindgames in the construction industry! The conspiracy
of it all!!!!
> Surely you'd be able to get some type of bulk buying discount. Is that $29.99
> quoted the wholesale or retail price?
I'm sure you can, and that was one of my last points. The figure I worked up
has a US retail profit margin AND an Australian retail profit margin, plus
factored in overheads for both retailers. US$29.99 is MSRP (US equivalent of
RRP, IIRC - arggg... too many acronyms). Wholesale would make my worked up
price even cheaper!
> > overheads and you get $1,018,460 all up. Divide that by 11,740 sets gives you
> > .... AUD$86.75. Wow! 7140 RRP's for AUD$87.95! Of course there are two retail
> > profit margins in here, which is not the real case, but that's not bad, if I
> > do say so myself. OK, bump the distribution man hours up a bit and it'll be
> > spot on.
>
> Retailers dont surely try to squeeze in extra profit margins!<g>
I wouldn't put it past a few of them, but I think generally, no.
> > So we can blame the government (again) for these rediculous tariffs and the
> > price of LEGO! I thought tariffs were to protect local industries. I don't
> > see any local industries making LEGO. Now if this tariff goes down to 5%,
> > with a 10% GST, that will make my 7140 set estimate price AUD$76.30. Lets
> > see what happens after July 1, shall we?
>
> Maybe the tariffs are there to protect the importers of crappy plastic Made in
> China toys. Actually when you think Toy's, no Australian company jumps at all
> do they?
Nope, none whatsoever.
> BTW..what is set 7140?
Star Wars X-Wing Fighter. C'mon Santosh, you know my LEGO taste by now, you
should have twigged that it was *something* Star Wars ;-)
> If I rounded up some Ninja minifigs and hijacked the container in darkness, we
> could save a lot of money.
Bucket loads!!! I'm still thinking of moving to Canada where there are reports
of LEGO pieces washing up on the beaches from the container ship which sunk a
couple of years ago. Some maths guru calculated that pieces will be washing up
for the next 20 years or so.
Pete Callaway
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Message has 1 Reply:
 | | Re: aust. customs and duty, lego & GST
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| In lugnet.loc.au, Peter Callaway writes: <SNIP>> (...) God bless the silk road, I can see it now, a caravan of camels carrying sandy wind blown boxes of Lego on their humps. Oh no wait, someone invented a flying machine a hundred years ago. This yet (...) (25 years ago, 14-Mar-00, to lugnet.loc.au)
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Message is in Reply To:
| | Re: aust. customs and duty, lego & GST
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| WOW!! This is fascinating. In lugnet.loc.au, Peter Callaway writes: <SNIP> (...) Bear in mind that our Lego gets shipped from Europe I believe, although there was talk of plan for a factory in Asia (perhaps Korea?) for Lego Products. I thought I (...) (25 years ago, 14-Mar-00, to lugnet.loc.au)
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