Subject:
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Probable effect of GST on LEGO
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Newsgroups:
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lugnet.loc.au
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Date:
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Thu, 27 Apr 2000 00:25:30 GMT
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Viewed:
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344 times
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The way I see it, Lego SHOULD decrease in cost by about 10%. This is due to
the way the GST is worked:
Currently, each set is imported by LA. This is then sold to the retailer
with 22% wholesale sales tax. The RRP is then 40% on top of this price.
[I've got order forms from LA for 1996-1999, which show cost, Wholesale, and
RRP, and this is the approximate values...RRP varies between 40-45%, but the
22% is fixed]
eg $1 cost => $1.22 wholesale => $1.71
BUT, with the GST, LA only add 10% onto the set cost. The retailer pays this
price, but before calculating their cost, remove the GST component, as they
get this rebated from the government [This is something that the papers fail
to take into account when showing price rises from the GST]. This returns
the cost to the retailer to LA's cost. Add to this the 40% for RRP, and then
10% for GST, and the price is about 15-20% cheaper than pre GST.
eg $1 cost => $1.10 GST => $1 'wholesale' => $1.40 RRP => $1.54 retail with
GST.
result about 10% cheaper. [at least that's how it looks...IANAL/Accountant]
If anyone sees any errors/incorrect assumptions/calculations, let me know,
but that is the way I see the cost going.
Benjamin Whytcross
BWhytcro@PacificAccess.com.au
Ph: (03) 9856 5282
Directory Technology Pty Ltd
1/436 Elgar Road,
Box Hill, 3128
Growing older is compulsary..Growing up isn't :-)
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Message has 1 Reply:
 | | Re: Probable effect of GST on LEGO
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| Nicely explained, I like the diagrammatic use of arrows. BUT can you use them arrows to logically explain why we aren't getting the soccer sets in Australia? Even my sister pointed them out in the catalogue and asked me to get her some. (...) (24 years ago, 27-Apr-00, to lugnet.loc.au)
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