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What is LEGO's Strategy on Regional Pricing? Availability?

24

Comments

  • MrBerreMrBerre Member Posts: 246
    edited November 2011
    the cost of Lego in the U.S., compared to other parts of the world is partially connected to the amount of product sold in the U.S.
    So they sell more because it's cheaper, and it's cheaper because they sell more?
    I wonder if certain countries do not receive the add-on gifts for reasons attached to taxation codes within various countries.
    I've received the free SW-minifig in a previous offer. And the free "police on motor" sets.
    I'd like to think LEGO understands all nations would like the great prices
    It's not just price equality (plenty of sets cost exactly the same in BE/NL/FR/DE, though some are cheaper and others are more expensive and there doesn't seem to be a pattern), but also the random application of promotions. I don't even get the chance to *buy* the two Christmas sets, and then it is pretty annoying to see that VIP customers in LEGO stores get one free for every $75 they spend.
    start looking at import/export taxation policies placed on countries.
    I doubt there is a difference for BE vs NL vs DE vs FR.

    I'm perfectly OK with (small) price differences between European countries (part of that is VAT), but I'm annoyed at "VIP" clients getting different treatment. I cannot even set up a "virtual" address in the UK and use that as the target, because simply having the sets shipped to BE from the UK is ridiculously expensive.
  • legoDadlegoDad Member Posts: 529
    the cost of Lego in the U.S., compared to other parts of the world is partially connected to the amount of product sold in the U.S.
    So they sell more because it's cheaper, and it's cheaper because they sell more?
    Right...volume of sales dictates this. The more I order from you, the better price you give me, I turn around and still sell at a profit with an affordable/attractive/low price for the consumer. No import duty for you and low taxes to boot.

  • CoolsplashCoolsplash Member Posts: 935
    edited December 2011
    I was confused which Category to place this thread. But I hope to reach out to as many Forum members as possible.

    I need to understand the strategy behind Lego and its release of sets/themes with respect to different countries. Lego has no direct presence in my country so we used to have to rely on importers and problem with that is the Importers do not focus more on Lego as they have other brands to work with as well.

    Now that I am beginning to understand Lego as a small business idea on the side, I see that the sets are released in different regions and are not made available everywhere else at once. For someone like me, I had to go through the hassle to buy Super Heroes, new City sets, new Ninjago Spinners from the US. And recently made a friend who helped me get new Star Wars and new Friends sets from the UK. At the same time, I bought some POC sets, and some big Technic sets from another friend in Denmark.Even in the US, TRU gets sets which are not released on Lego.com, eventually TRU will charge markup. So it all adds to the hassle to get the sets.

    Point is, why is this strategy being used by Lego? Is it because Lego wants people who can really invest heavily to buy the sets from different locations and then resell them for bigger returns? Or is it to create a certain cat and mouse race between Lego fans? As Lego being the company behind the most amazing toy EVER, is doing a service yet making money from it obviously. Why is there such a difference?

    Sorry to rant but I am new to the Lego business and need to understand it better.
  • pcironepcirone Member Posts: 346
    Different markets have different tastes. It's as simple as that, and is true in any global industry.
  • akunthitaakunthita Member Posts: 1,038
    @Coolsplash, this question has been reaised by others on other LEGO forums before. The answer always came to that there is no conspiracy in when sets get released where or even any minutely managed strategy. There is some basic understanding of what sells best in each market (USA - Star Wars, Germany - LEGO City, I read in Russia Bionicle was huge...), knowing when people tend to buy toys in various markets (major holidays, etc.), but other than that it just just dealing with shippers, retailers, customs, rules, riots, and who knows what else.

    Remember that the phenomena that we know instantly when someting gets released in any country is very new. Thanks to the Internet! But merchandise has been always released at different times at different markets, we just didn't know about it before.

    I don't know if you ever had the chance to work with any major company that sells merchandise internationally or even in a larger region. The amount of detail that need to be pulled together for an item to appear on a shelf is staggering and things don't always go smoothly.

    Due to LEGO fan sites we are way ahead of the curve and know way too much way too early...(c;
  • CoolsplashCoolsplash Member Posts: 935
    @akunthita, I do agree with you somewhat. But my question was a matter of being unfair to people who have no approach to get this wonderful product. And then the price people have to pay :( really really sad. I do this on the side, not doing it to become a BIG name in Lego business but its mainly a service for me as I love doing it. And since its a childhood hobby I need to make something to keep feeding it.

    My full time job is in Pharmaceuticals, so I know sales dynamics and how a product is made available to the public.

    I just wish there was a better, easier, more humble channel to get this amazing product.

  • davee123davee123 Member Posts: 864
    But my question was a matter of being unfair to people who have no approach to get this wonderful product.
    Bottom line: It's too expensive for LEGO to help you.

    Every time LEGO sells something internationally, they have to deal with customs and taxes-- both in the country of origin and the country of destination. And on top of that, they have to deal with distributors who can get the products where they're supposed to go.

    That's quite a lot of hassle for LEGO, so they don't set up deliveries for a given country UNLESS they think that there's going to be sufficient sales there. If LEGO doesn't sell directly to your country, that's probably why.

    Australia (for instance) had a lot of difficulties setting up a direct service, thanks to some strange legal issues (as well as "other factors", we were told). So even though LEGO *wanted* to sell directly in Australia, it took them a while to get something established.

    Anyway, it's not cut-and-dry. There's only so much that LEGO can handle at a given time, and setting up shop in every country in the world just isn't worth it for LEGO.

    DaveE
  • CoolsplashCoolsplash Member Posts: 935
    @davee123, I do agree with you for it being expensive for Lego to help. The logistics are a big hassle and back burner for our region.

    But the part about distributors is also true. Everyone is in to make money so the price goes up. Availability can be sorted out but then price hikes up. And then is becomes too expensive to manage. But in my region, these two are the only hurdles, pricing which is very high and availability. Some of the importers buy old sets in bulk from places and then dump these here for a high price. And mainly that has discouraged a lot of potential buyers.

    But that is another issue. I feel that if the price was right and items were made available to people over here, sales would go up.
  • IstokgIstokg Member Posts: 2,366
    DaveE, was the Australia issue you are referring to related to the fact that from 1962 (when Australia started LEGO sales) until 1992, all Australian LEGO came from Britain via British LEGO Ltd. of Wrexham Wales, a subsidiary of Courtauld's Corp., the LEGO licensee for LEGO in Britain, Ireland and Australia... or are you referring to more recent problems?
  • Silber334Silber334 Member Posts: 147
    Hey Coolsplash,
    I think it also has to do with demand which I mentioned earlier. Japan, for instance, isn't a major market, meaning that it doesn't have much of a population of Lego fans or consumers and hence the not-so-high sales volume. That's why we only get the basic sets via Lego Japan. Other sets ( ie; SW or exclusives ) must be imported by other distributors.
    I think many of us are in the same boat when it comes to wanting a wider selection of Lego sets. But there are a lot of issues to clear if we are going to have things settled more fairly.
  • LegoFanTexasLegoFanTexas Member Posts: 8,404
    But the part about distributors is also true. Everyone is in to make money so the price goes up. Availability can be sorted out but then price hikes up. And then is becomes too expensive to manage.
    There is fast, good, and cheap, pick any two... :)
  • CoolsplashCoolsplash Member Posts: 935
    Well personally I don't think we will see Lego in more circulation in our region, due to what @Silber334 pointed out which is correct. But, how about the idea to provide a service and then see the results? It was the case with a food chain called Hardees. We kept hearing rumours of Hardees opening up in our country. But then when it did open, WE the people of the city were not able to get inside the restaurant as the queue outside the restaurant was too long for weeks. I know this is irrelevant.

    But I personally feel, more people should jump in and help spread the Lego love all over the world, especially places where people are ready to buy but where Lego cannot reach.

    It is sad that I personally have emailed a few members here for the help, some have replied positively but declined nicely, keeping in mind no one likes to work for free, but then some did not even reply seeing where I am from. But that is a topic of another thread I guess.
  • davee123davee123 Member Posts: 864
    DaveE, was the Australia issue you are referring to related to the fact that from 1962 [...] or are you referring to more recent problems?
    That was relayed from Brad Justus at BrickFest 2001:

    http://news.lugnet.com/events/brickfest/?n=371

    At the time, the Australian LEGO fans were very upset that they didn't have a S@H service, and were constantly asking LEGO why it wasn't set up.

    DaveE
  • LegoFanTexasLegoFanTexas Member Posts: 8,404
    It is sad that I personally have emailed a few members here for the help, some have replied positively but declined nicely, keeping in mind no one likes to work for free, but then some did not even reply seeing where I am from. But that is a topic of another thread I guess.
    The core issue I think isn't that people don't want to work for free, it is that you're asking the wrong people.

    Asking me to help you does no good, I have no special sources, no access to Lego cheaper than anyone else. If you really want to bring Lego into your country, you need to stop talking to us and start talking to TLG.

    Offer to be the in-country distributor. TLG needs someone domestic who knows the local culture and can be the contact and point-man who handles the receiving end, who sets up deals with retailers in country, etc.

    Of course you probably need money to do this, but if there is demand for something, you can find someone local with money to help set it up in return for a share of the business.

    From a money point of view, it makes no sense to add another middle-man, which is what any of us would be. Go direct to the source, buy container loads of Lego and import them into your country and setup distribution.

    I would wish you nothing but success! :)
  • CoolsplashCoolsplash Member Posts: 935
    @LegoFanTexas, thanks for the rundown my friend. But those options have been approached previously and yet its a sit and wait matter now. TLG is not interested due to low volume and high logistics costs. Its something like Lego Japan or Lego Singapore, so we mainly have to rely on importers but that approach does not make people from our region be able to get the newer stuff.

    Rather then sitting and waiting for importers to dump 2 year old products in the market every 6-8 months, I took off and started to use the indirect approach (offering markup on retail prices, buying from Bricklink in bulk, and other options), so its working, slow and steady.

    The joy to spread Lego and to hand over something like the Black Pearl or the Unimog or a SW Battle pack to people here is really worth the hassle.

    But sadly, our region will never become a collectors region like in the US, UK or Canada. There is big money in collecting and reselling stuff at higher prices which only very very few people know about.

  • IstokgIstokg Member Posts: 2,366
    @davee123 Thanks... that issue with Australia (Customs Australia) is of more recent vintage.

    I guess it's just another headache that TLG has with the Customs of various countries (comes with the territory of being a toy exporter). Look at all the problems they're having with Poland right now with S&H orders being held up in Poland for other countries.

    And then of course there Customs Canada... slooooooow...

    Interestingly enough... TLG has had Custom (and laws) related problems going back to the 1950s. The first export country (Norway) had a toy import restriction ban for many years, which is why LEGO had to set up production (via Norwegian plastic maker Svein Stromberg & Co.) in Norway for nearly a decade. And later, in 1970, came the headaches with Italy when the Italian Parliament set up a construction toy import ban for several years (and that gave us Minitalia).

    So TLG has had to deal with customs related issues nearly its' entire exporting existence.
  • CoolsplashCoolsplash Member Posts: 935
    @Istokg, thanks again for the information. Makes my hatred of Lego a bit less. Kidding :) I love Lego!

    Is there a way to identify official Lego Distributors, Exporters and Agents in a region?
  • brickmaticbrickmatic Member Posts: 1,071
    @Istokg What are the problems in Poland?

    @Coolsplash The job description in this comment shows that TLG is interested in "the potential for opening franchise/partner stores" and in developing "a framework for opening franchise/partner stores that can be successfully applied to locations worldwide." Looks like they don't have a system for dealing with franchises but maybe they will develop one in the UK that will then be used worldwide. If that happens, you might be able to open you own LEGO store! Really, it might be worthwhile to inquire about it with TLG directly.
  • CoolsplashCoolsplash Member Posts: 935
    @brickmatic, I guess I do understand the description. But yes, inquiring it with TLG directly could help. Thanks!
  • monkeyhangermonkeyhanger Member Posts: 3,170
    Why is there 15 euros difference between Germany and France? VAT higher in France? I really don't understand why Lego feels the need to have such noticeable price discrepancies between countries. Pick an approximate exchange rate that shouldn't move too much for years such as £1 = 1.25 Euros = US$1.50 and stick to it. All the Eurozone countries should have the same price. It seems as though Lego will rip off the UK and Europe without a pause for thought. How many R2s would they shift in the USA if they had to pay $235 for it? Lego should remember where they are - Europe! I'm sure someone will mention sales tax in the USA, but some states dont add it, so it's a complete variable. USA seem to get by far the best sales on Lego through the official website too.
  • mr_bennmr_benn Member Posts: 952
    ^ Economies of scale, local market conditions, etc etc etc. USA will always be a bit cheaper for everything, it has been discussed here many times before.
  • weinnerweinner Banned Posts: 148
    Sounds like the only good thing the US has going for it.
  • vonlanivonlani Member Posts: 21
    if only shipping costs from us to germany were cheaper, i would buy everything on brick link. unfortunately for most sets shipping too europe just kills the advantage of the cheaper price in the us.
  • YellowcastleYellowcastle Administrator, Moderator Posts: 5,234
  • RobbRobb Member Posts: 144
    I live in Hawaii, and the LEGO store here charges more than US mainland prices for most of its stock. For example, 4635 (Fun with vehicles) is normally 29.99 USD at LEGO stores on the mainland, but it's 32.99 USD here in Hawaii. The larger the set, the higher the price difference with modular buildings costing 15 USD more here in Hawaii.

    Funny thing is, I ordered Town Hall from Shop@Home during the free shipping event last month, and I got it for the regular 150 USD price. So if LEGO doesn't charge Hawaii resident any extra money to ship to Hawaii, then why does the LEGO store charge higher prices in Hawaii? Too bad, because this is the first time that I have lived near a LEGO store.
  • rocaorocao Administrator Posts: 4,290
    ^ As I understand it, the viability of each LEGO store is dependent on its own profitability. LEGO Brand Retail doesn't allow for certain locations to be under profit or unprofitable just to maintain a presence in the region.

    The rent at Ala Moana Mall is probably higher than the typical mainland mall, and therefore items carry a slight markup to offset this, similar to a location like Rockefeller Center. I actually visited the store in February, and although I'm not sure where it ranks in sales, it did seem on the lower end. Tourists, which I imagine comprise a good portion of mall traffic, simply won't be able to transport the large boxes home.
  • monkeyhangermonkeyhanger Member Posts: 3,170
    It's pricing discrepacies within the same theme that I think is Wrong. Lego Star Wars is very popular in the US and UK, but why do some sets have almost a £1:$1 price and others almost £1:$1.45. It's not just the small sets or big sets that have a certain price ratio. Sales tax in US is a variable from state to state, so it's not even up for discussion really as part of the cost to consider.
  • LegoFanTexasLegoFanTexas Member Posts: 8,404
    Has anyone considered that Lego is simply charging as much as they think they can, for each product, in each region?

    In some places, product A will go for X dollars, in another place, it will go for Y dollars.

    Product B will go for a different set of dollars and a different spread, given regional tastes.

    Lego is in business to make money, it is what I'd do if I were them. So very few of their customers are ever going to actually notice anyway...
  • BanditBandit Member Posts: 889
    It seems as though Lego will rip off the UK and Europe without a pause for thought. How many R2s would they shift in the USA if they had to pay $235 for it? Lego should remember where they are - Europe! I'm sure someone will mention sales tax in the USA, but some states dont add it, so it's a complete variable. USA seem to get by far the best sales on Lego through the official website too.
    North America is by far the world's largest toy market, and by far Lego's largest market as well -- likely 60%+, or roughly 2/3 of their total worldwide market. Who would you prioritize and take care of first if you were the Lego Group? :)
  • BrickDancerBrickDancer Member Posts: 3,639
    ^Generally, North America is actually the biggest consumer market for most high-end goods, the larger bulk purchases combined with low tariffs and low taxes (respectively), dollar value versus euro/pound gives the US consumer the lowest prices globally. This includes luxury handbags, clothes and even cars like BMW & Mercedes, all typically made in Europe but still found cheapest in US. That's why my European colleagues load up on goods when visiting here.
  • LegoFanTexasLegoFanTexas Member Posts: 8,404
    ^ This is something that I think many of our friends in Europe seem to miss.

    There is a *reason* why everything costs more over there, it costs more to do business over there. To open a business here costs almost nothing and generally takes very little from the government to do so, taxes (for all we complain about them) are pretty low, a lot can be "written off" to reduce them, etc.

    To put it bluntly, all those wonderful social services you enjoy, cost money, and part of the price of that is paid in the price of goods. Everything from a higher minimum wage to universal health care all costs *something*, you're seeing part of that *something* in the price of Lego in Europe compared to the USA.

    The above comment is not meant to be pro/con, I see both sides and benefits to what Europe has, I'm simply pointing out that one of the prices to be paid are higher prices on goods purchased. This is not a "good" or "bad' thing, it just is what it is.
  • CoolsplashCoolsplash Member Posts: 935
    Hey this thread is still alive, nice :)

    Well as my fellow brethren here has seen me rant and stuff about LEGO products not being easily available in my country, I would like to share some news with my friends here. We recently got a official LEGO presence in my country, right in my city! At first it was hard to believe but then I found out the facts about this group. They have created a Webstore where they sell LEGO from and I think a physical store is underway but will take time. So LEGO is available but most bizarre part is as follows:

    - Not everything is available i.e. in Super Heroes the Catwoman set is not available nor is the Dynamic Duo (obviously as its Out of stock everywhere it seems)
    - The 2012 sets in Star Wars, City are not available
    - The prices are so high that ordering from Bricklink or asking some friend from Brickset is much cheaper :P

    So my point being, even this venture is being managed by a big Importer who has limited access, no idea about the market and has higher prices. Oh oh, I'm ranting again :P

  • legoDadlegoDad Member Posts: 529
    ^ This is something that I think many of our friends in Europe seem to miss.

    There is a *reason* why everything costs more over there, it costs more to do business over there. To open a business here costs almost nothing and generally takes very little from the government to do so, taxes (for all we complain about them) are pretty low, a lot can be "written off" to reduce them, etc.

    To put it bluntly, all those wonderful social services you enjoy, cost money, and part of the price of that is paid in the price of goods. Everything from a higher minimum wage to universal health care all costs *something*, you're seeing part of that *something* in the price of Lego in Europe compared to the USA.

    The above comment is not meant to be pro/con, I see both sides and benefits to what Europe has, I'm simply pointing out that one of the prices to be paid are higher prices on goods purchased. This is not a "good" or "bad' thing, it just is what it is.
    Well said LegoFanTexas. The reality of it all.
  • Ma1234Ma1234 Member Posts: 693
    ^Generally, North America is actually the biggest consumer market for most high-end goods, the larger bulk purchases combined with low tariffs and low taxes (respectively), dollar value versus euro/pound gives the US consumer the lowest prices globally. This includes luxury handbags, clothes and even cars like BMW & Mercedes, all typically made in Europe but still found cheapest in US. That's why my European colleagues load up on goods when visiting here.
    Yup. People often forget that it's not that consumer goods are more expensive elsewhere; they are just cheaper in the United States.

    In the U.S., a Porsche Cayenne cost less than what a Chrysler 200 convertible (Lancia Flavia) cost in Europe!
  • bluemoosebluemoose Member Posts: 1,716
    North America is by far the world's largest toy market, and by far Lego's largest market as well -- likely 60%+, or roughly 2/3 of their total worldwide market.
    I'd love to know where you get those figures from.

    From the 2005 Lego Annual Report, the breakdown of revenue is -
    > North America & Pacific - 27%
    > Europe, Asia & Emerging - 59%
    > Direct to Consumer - 10%
    > Other - 4%

    From the 2007 Annual Report, the last time they published revenue figures by region, the breakdown was different -
    > Central and Southern Europe - 27.1%
    > Scandinavia, Benelux, Eastern Europe, Asia - 26.5%
    > North America, Australia, New Zealand, United Kingdom - 30.1%
    > Community, Education, Direct - 16.3%

    Other figures I've seen, not in the public domain, confirm that Europe, as a whole, is a much larger market than the US for Lego, but that they don't treat Europe as a single market for accountancy purposes.
    Has anyone considered that Lego is simply charging as much as they think they can, for each product, in each region?
    Yes. Exactly that.
  • BrickDancerBrickDancer Member Posts: 3,639
    ^I like the use of company stats and 60% is way high for global market share. The US may still have the highest share of any single country or sub-sector like western Europe though. However, they have it merged to the point of vagueness. Europe, Asia & Emerging as a single sector convolutes the data beyond use. Same as North America & Pacific; North America/Australia/NZ/UK also. To get a definitive answer, North America must be assessed separately in the statistics above.
  • BanditBandit Member Posts: 889

    From the 2005 Lego Annual Report, the breakdown of revenue is -
    > North America & Pacific - 27%
    > Europe, Asia & Emerging - 59%
    > Direct to Consumer - 10%
    > Other - 4%

    From the 2007 Annual Report, the last time they published revenue figures by region, the breakdown was different -
    > Central and Southern Europe - 27.1%
    > Scandinavia, Benelux, Eastern Europe, Asia - 26.5%
    > North America, Australia, New Zealand, United Kingdom - 30.1%
    > Community, Education, Direct - 16.3%

    Other figures I've seen, not in the public domain, confirm that Europe, as a whole, is a much larger market than the US for Lego, but that they don't treat Europe as a single market for accountancy purposes.
    Since they haven't released regional breakdowns in 5 years, I was basing them on the numbers of some of their competitors, such as Hasbro and Mattel (who do release their numbers, and they are indeed roughly 60/30). Right? Wrong? I dunno. Perhaps Lego is just a different beast.

    Doing a bit more research, in 2010, North America had 29% of the global toy market, Europe had 28%, and Asia had 28%. The US alone commanded 26.3%. UK was 5.4%, France was 4.9%, Germany 4%. Australia was just 2.8%, and Canada just 2.5%.

    So if their 2007 numbers are still somewhat accurate today, they seem to match up with these overall worldwide numbers.

    It would be nice to know the breakdown of the Community/Education/Direct numbers by region.
  • gmpirategmpirate Member Posts: 1,654
    ^ This is something that I think many of our friends in Europe seem to miss.

    There is a *reason* why everything costs more over there, it costs more to do business over there. To open a business here costs almost nothing and generally takes very little from the government to do so, taxes (for all we complain about them) are pretty low, a lot can be "written off" to reduce them, etc.

    To put it bluntly, all those wonderful social services you enjoy, cost money, and part of the price of that is paid in the price of goods. Everything from a higher minimum wage to universal health care all costs *something*, you're seeing part of that *something* in the price of Lego in Europe compared to the USA.

    The above comment is not meant to be pro/con, I see both sides and benefits to what Europe has, I'm simply pointing out that one of the prices to be paid are higher prices on goods purchased. This is not a "good" or "bad' thing, it just is what it is.
    But don't fret for long all. Our taxes, regulations and social services are catching up! Soon none of us will have to work anymore and everything will be free!!!
  • Ma1234Ma1234 Member Posts: 693
    North America is by far the world's largest toy market, and by far Lego's largest market as well -- likely 60%+, or roughly 2/3 of their total worldwide market.
    I'd love to know where you get those figures from.

    From the 2005 Lego Annual Report, the breakdown of revenue is -
    > North America & Pacific - 27%
    > Europe, Asia & Emerging - 59%
    > Direct to Consumer - 10%
    > Other - 4%

    From the 2007 Annual Report, the last time they published revenue figures by region, the breakdown was different -
    > Central and Southern Europe - 27.1%
    > Scandinavia, Benelux, Eastern Europe, Asia - 26.5%
    > North America, Australia, New Zealand, United Kingdom - 30.1%
    > Community, Education, Direct - 16.3%

    Other figures I've seen, not in the public domain, confirm that Europe, as a whole, is a much larger market than the US for Lego, but that they don't treat Europe as a single market for accountancy purposes.
    Has anyone considered that Lego is simply charging as much as they think they can, for each product, in each region?
    Yes. Exactly that.
    Revenue does not equal total sales. Lower revenue per set in a North America. I'd be shocked if the U.S. is not the single largest LEGO market.
  • LegoFanTexasLegoFanTexas Member Posts: 8,404
    But don't fret for long all. Our taxes, regulations and social services are catching up! Soon none of us will have to work anymore and everything will be free!!!
    Oh Goodie! :)
  • bluemoosebluemoose Member Posts: 1,716
    Revenue does not equal total sales. Lower revenue per set in a North America. I'd be shocked if the U.S. is not the single largest LEGO market.
    I never said revenue and sales were the same thing; my point was that the "60 percent" figure didn't stand up to scrutiny. The US is the single biggest 'market' (but Lego get to define 'market' however they please), with Germany and the UK in 2nd and 3rd place respectively (last figures I've seen we're something like 22pcent for the US, 14pcent for Germany and 12pcent for the UK ... which means, when you take into consideration relative populations of the three countries, that the UK is the biggest Lego-loving nation of the three ;-) )
  • YellowcastleYellowcastle Administrator, Moderator Posts: 5,234
    ^ Haha.
  • TheBigLegoskiTheBigLegoski Member Posts: 1,437
    edited June 2013
    So I just checked prices for the new Lord of the Rings sets, comparing what German customers have to pay when ordering from Legoshop@home with what Dutch customers here in The Netherlands have to pay ordering directly from Legoshop@home. As I think the prices for the new sets are really steep here in NL!

    Btw. If people from other EU countries are willing for comparison to add prices they need to pay for the same product, please feel free to provide the data.

    Current VAT (value added tax) rate is 21% in The Netherlands, in Germany VAT is 19%, so that cannot explain the price difference.

    Both countries are part of the EMU (European Monetary Union), meaning both countries have the bloody Euro as their domestic currency (Denmark is not a member of the EMU, they were wise enough to retain their own currency the Danish Krone; one DK = 0,13 Euro cent).
    Also the standard of living is very similar in Germany and the Netherlands. So what else could explain the often huge recurring price difference?

    Here are some examples:

    Netherlands 79008 Pirate Ship Ambush Price €119,99
    Germany 79008 Hinterhalt auf dem Piratenschiff Preis €99,99
    Difference €20

    Netherlands 79007 Battle at the Black Gate Price €79,99
    Germany 79007 Die Schlacht am Schwarzen Tor Preis €69,99
    Difference €10
    (However in the USA they still only pay 59,99 lousy dollars for the same set, while most Lego is manufactured in Europe, and still needs to get shipped across the Atlantic ocean. Plus the USA is outside the EU, and thus outside the European Economic Community with all its fiscal benefits for member-states, to which Denmark also belongs / is part of. One DK is 0,18 dollar cent btw.)

    Netherlands 79006 The Council of Elrond Price €39,99
    Germany 79006 Der Rat von Elrond Preis €39,99
    Difference €0
    (US$29,99)

    Netherlands 10237 The Tower of Orthanc Price €229,99
    Germany 10237 Der Turm von Orthanc Preis €199,99
    Difference €30!

    etcetera etcetera, enzovoort enzovoort, und so weiter und so fort....

    Call me Dutch if you like!

    But what is up with that!?!
  • dougtsdougts Member Posts: 4,110
    I would like to politely suggest that this conversation try to avoid the USA vs. Europe pricing discussion - we've done that to death on this site over and over again.

    I do however think that the discrepancies within the EU are interesting, and I'd certainly like to hear from anyone who has any insight, mostly out of innate curiosity. I certainly can't add anything to the table unfortunately.
    Si_UKNZ
  • TheBigLegoskiTheBigLegoski Member Posts: 1,437
    @doughts
    Yeah you are right, I could have probably better left the comparison with the USA out. It was just, well, I was looking at the Lego website in multiple variations (NL/D/USA) hence the extra comparison with America. Although as the title of this thread also indicates; I would like to know why Lego prices vary between countries within the EU.
  • SirKevbagsSirKevbags Member Posts: 4,027
    Tax differences, distribution costs and market competition will be discussed. I just think its because they can. Sets are priced at a level they think they will sell at. Sometimes over inflated to allow money to be slashed so it feels like we are getting a deal.
  • PaperballparkPaperballpark Member Posts: 4,270
    I'm not being funny here, but the Netherlands happens to be right next door to Germany. Why don't you simply cross the border and buy from a German store?
  • binaryeyebinaryeye Member Posts: 1,831
    I'm sure some of the difference has to do with how much they expect to sell in a given country. Germany is likely a larger market for LEGO than The Netherlands.
  • JenniJenni Member Posts: 1,390
    France is in the middle, I believe the tax rate is 21%

    Pirate Ship Ambush 109,99
    Battle at the Black Gate 75,99
    Council of Elrond 39,99
    Orthanc 199,99

    It's interesting that our Orthanc price is the same as Germany's.
  • CoolsplashCoolsplash Member Posts: 935
    So I guess ordering the Pirate Ship Ambush from someone in Denmark for $93 is fine :) ?
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