Subject:
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Re: 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 00:36:20 GMT
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Viewed:
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392 times
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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.
In lugnet.loc.au, Benjamin Whytcross writes:
> 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 is in Reply To:
 | | Probable effect of GST on LEGO
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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. (...) (25 years ago, 27-Apr-00, to lugnet.loc.au)
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