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Why do prices vary by region?

datsunrobbiedatsunrobbie West Haven , CTMember Posts: 1,760
I'm starting this because price variances based on location are neither leaks nor leeks.

It seems the most popular comparison point is exchange rate, but that is only one part of the puzzle.

One thing that seems to be overlooked is the cost of transporting the product from the factory to the store. If the factory is in Denmark and the product is sold in Denmark, transport costs are minimal. If that same product has to be loaded onto a boat or plane and shipped to an island 9000 miles away, transport costs are considerably higher. 
560HeliportBobflipjmeninno

Comments

  • karritkarrit USAMember Posts: 647
    You know you've opened a can of worms here.  Considering the many factories Lego has around the world to supply different regions the transport costs shouldn't be triggering the major differences in price that we are seeing for some sets.  That being said some countries are still a bit more remote than others so should expect higher costs for that reason.  The tax after the fact like here in the U.S. vs. VAT for European countries is another factor that seems to affect prices.  Seems to me that if the European prices supposedly have the VAT calculated in (not sure if this is the case since prices seem to differ depending upon country) then the prices for the U.S. should be lower since we pay tax on top of the selling price.  I don't know what the solution is but maybe it should be something along the lines of the exchange rate they calculate the VIP rewards on.  Looking at current exchange rates it still looks to me like dollar vs euro prices should be within a dollar or two rather than the 10 - 15 or more that they are pricing a lot of sets at currently.
  • CCCCCC UKMember Posts: 20,307
    They price at a level that enough people will pay what they are asking such that they will sell however much they want to sell.  
    560HeliportdatsunrobbiepxchrisAstrobricksjnscoelhoWesterBricksSumoLegoMr_CrossBrickfan50
  • 560Heliport560Heliport Twin Cities, MN, USAMember Posts: 3,080
    CCC said:
    They price at a level that enough people will pay what they are asking such that they will sell however much they want to sell.  
    Exactly. There are lots of sets that, for instance, are USD 39.99 and Euro 29.99, then others where the prices are reversed, and still others that are the same in dollars and euros. 
    AstrobricksBumblepants
  • pxchrispxchris Oregon, USAMember Posts: 1,926
    Exactly what @CCC said.
  • The_RancorThe_Rancor Dorset, UKMember Posts: 2,331
    CCC said:
    They price at a level that enough people will pay what they are asking such that they will sell however much they want to sell.  
    Guess TLG’s marketing department vastly overestimated the appeal of the Unikitty cartoon series in the UK as although cute and colourful, the regional prices here were some of the most obscene I’ve ever seen. #41453 Party Time is up there as one of the most overpriced sets of all time. Even if the sets were initially exclusive to Tesco that’s not a valid excuse.

    I do agree with the overarching statement though. TLG just needs to be wary of niche licenses not being as appealing as they’d like, plus perhaps bumping up the prices for retail exclusives in certain regions (not something UK fans seem to need to worry about much anymore).
    andhe
  • CCCCCC UKMember Posts: 20,307
    Sure. Unikitty was very popular after the movie and no doubt they extrapolated that and screwed up there. 
    SumoLego
  • SumoLegoSumoLego New YorkMember Posts: 15,021
    CCC said:
    They price at a level that enough people will pay what they are asking such that they will sell however much they want to sell.  
    You ruin the fun when deploying the fundamental answer to every question relating to a market.
    560HeliportWesterBricksBrickfan50bpk2300
  • CCCCCC UKMember Posts: 20,307
    SumoLego said:
    CCC said:
    They price at a level that enough people will pay what they are asking such that they will sell however much they want to sell.  
    You ruin the fun when deploying the fundamental answer to every question relating to a market.
    Yeah. The thing is, it works!

    It is funny when selling reasonably scarce parts on bricklink, you occasionally get contacted by potential buyers saying (paraphrasing) "I want that but I'm not paying your price. Someone in (another country on the other side of the world) is selling for £X, will you price match". Now I know my stock, I know how much of it I have, and I have a good idea about how fast items sell and what for. So normally I just tell them that if they think the other person is a better deal, then buy from the other person. And often while they delay, someone else will buy what they wanted.


    560Heliportbpk2300
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