Different prices

ragnarok · Post by **ragnarok** » Mon Jul 03, 2006 1:47 pm

I would like to address you with a simple question. Do you think that the differences in TLC prices on the US and the EU markets are justified?

I believe that it's not right as long as the transportation costs across the ocean should at least compensate for the higher taxes across the Union. Not to mention the absense of duties and custom fees within the EU.

E of Alshire · Post by **E of Alshire** » Mon Jul 03, 2006 3:01 pm

Of course it's justified. TLG has the power to charge whatever price they want for their product; and conversely, we, the consumer, have the power to not buy them.

If it costs more to ship LEGO halfway across the world, then they need to increase the price to stay at a profit.

ragnarok · Post by **ragnarok** » Mon Jul 03, 2006 7:02 pm

E of Alshire wrote:If it costs more to ship LEGO halfway across the world, then they need to increase the price to stay at a profit.

I don't think you understand me right. LEGO is actually manufactured in Europe and shipped to the US and yet the price in Europe is higher.

E of Alshire · Post by **E of Alshire** » Mon Jul 03, 2006 7:17 pm

ragnarok wrote:LEGO is actually manufactured in Europe

But then, so are a number of products. Since Europe is shipping so many products to the US, it's easier to ship it with other products with someone who ships back and forth anyway.

In smaller European contries, where less products are shipped as a whole, it's harder to ship with other products because less products are going in.

And didn't LEGO outsource a bunch of production recently?

ragnarok · Post by **ragnarok** » Mon Jul 03, 2006 7:31 pm

E of Alshire wrote:Since Europe is shipping so many products to the US, it's easier to ship it with other products with someone who ships back and forth anyway.

Actually over 60% of both export and import of each European countries is to and from other European countries. And there is a vast and reliable network of communications which seems to function well enough and at reasonable cost. It's not only getting the product to the US but there are also quite remote areas and greater distances there.

E of Alshire wrote:And didn't LEGO outsource a bunch of production recently?

They did - to the Czech Republic.

Post by **JoshWedin** » Mon Jul 03, 2006 10:17 pm

Since I live in the US and benefit from the difference, my opinion probably isn't credible, but I think the pricing is justified. I am echoing EofAlshire here, but Lego is free to price their product however they want and if we don't want to pay that price then we are free not to buy. I am sure they have their reasons for price differences and and we are not privy to those reasons. We could argue both sides until we are blue in the face, but the facts are that we don't know the reasons for the differences, we can only guess.

The reasons behind the price differences may make good business sense or be ill-conceived, it really makes no difference. Lego is not in the business of providing us with bricks; they are in the business of making money. Therefore, whatever price they set is justified.

Josh

MaxiVisVires · Post by **MaxiVisVires** » Tue Jul 04, 2006 11:15 am

It may surprise you, but LEGO is not the only product that has a big price difference between Europe and the United States. I had a friend from Austria that spent Christmas this year with me and during her stay I took her to a European Grocery Store. She couldn't believe that products made in Austria are actually up to 50% cheaper here than they were for her back home.

Just like others said, even though my opinion isn't credible due to me benefitting from the difference, I still think it's justified. The first time I was in Europe I couldn't believe how expensive things were, then I found out about the VAT. That sucks. So does not having free drink refills. I think the entire world would benefit from Cheap LEGO and free drink refills. In fact, if I ever run for political office, that will be my campaign slogan.

Lord_Of_The_LEGO · Post by **Lord_Of_The_LEGO** » Tue Jul 04, 2006 4:09 pm

MaxiVisVires wrote:I think the entire world would benefit from Cheap LEGO and free drink refills. In fact, if I ever run for political office, that will be my campaign slogan.

I'd vote for you!

I'm going to echo Josh and E and say the prices are justified. But I'm also going to echo Josh and say my opinion doesn't count much, becuase I've got it easy.

stuifzand · Post by **stuifzand** » Wed Jul 05, 2006 6:16 am

There aren't many europeans who have voted yet

So, question:
In The Netherlands, the gargoyle bridge set costs € 29.99 (or: $ 38.47)
For the US, it's $ 29,99. What do US people actually pay for this set?

Post by **architect** » Wed Jul 05, 2006 11:36 am

stuifzand wrote:There aren't many europeans who have voted yet

So, question:
In The Netherlands, the gargoyle bridge set costs € 29.99 (or: $ 38.47)
For the US, it's $ 29,99. What do US people actually pay for this set?

We would pay the 29.99 plus whatever our local and state sales taxes add. This could be as much as $3 in tax. Plus Toys R Us probably has the set listed at $31.95 instead of $29.99. (They seem to have increased prices lately). In that case we could end up paying as much as $35 for the set. It really varies from State to State and at which retailer the set is purchased.

Ben

mysticallyenchanting · Sat Jul 08, 2006 2:32 pm

It depends on why the sets are differently priced.

If Lego sells to all countries at the same price and the difference is incurred because of tax and wage differences then that's fine. (I look at it as my few pounds on the lego set is funding my free health care and 18 years of free/very cheap eductaion, pension etc).

On the other hand, if the price differnces are because Lego is selling the sets cheaper to American retailers than European ones, then that is out of order. For us loyalist Lego is a complete monopoly and shouldn't be allowed to charge different prices (I think this is what an economist would call a supernormal proift).

I suspect, however, that the former is the case. In which case we should be complaining about our tax rates not lego.