Subject:
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Re: USA vs. UK pay differences
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Newsgroups:
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lugnet.off-topic.debate
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Date:
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Tue, 27 Mar 2007 19:31:04 GMT
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Viewed:
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3240 times
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In lugnet.off-topic.debate, Leonard Hoffman wrote:
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In other words, the average American is poorer than the average Briton, and
therefore less able to pay the same prices for the same product.
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If you’re suggesting that Lego pricing is due to income levels of citizens, I
don’t think that’s the case. Some of the issues (as I’ve been told from people
in Lego and outside of Lego) are:
1) People in Europe are willing to pay more for toys (and goods in general),
whereas Americans are cheap-o’s. Americans are perfectly happy to get crappy 3rd
rate merchandise from places like Wal*Mart BECAUSE they’re cheap.
2) Americans are unwilling to pay much in the way of markup. They drastically
undervalue the service of middlemen. Americans have very little concept for
“reasonable” profit. If a car costs $8000 to manufacture, they often assume that
they “ought” to pay $8000 for it, or maybe even $9000.
3) The US is considered a “growing” market. So Lego wants to maintain a presence
there because they know it’s a *potentially* valuable market base, even though
they don’t make a lot of profit there (relatively speaking).
4) Lego in the US is up against a large share of competitors, unlike in Europe,
where it’s typically more dominated by Lego. And, Lego’s US competitors are made
more cheaply than Lego, and are sold at lower costs.
DaveE
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Message has 1 Reply:
 | | Re: USA vs. UK pay differences
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| (...) My point isn't that LEGO is saying "Americans make less money, therefore we will charge less" but rather than the uneven income (...) Americans, because they make less, do not buy equally priced (to European sets) LEGO because it is (...) (18 years ago, 27-Mar-07, to lugnet.off-topic.debate, FTX)
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Message is in Reply To:
| | USA vs. UK pay differences
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| Granted, most of us don't work for minimum wage, but some debate about the Playstation3 price difference on (URL) between the States and Europe has yielded an interesting tidbit of information, perhaps useful in understanding the LEGO price (...) (18 years ago, 27-Mar-07, to lugnet.off-topic.debate, FTX)
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