Aussie sales! Share the news of LOCAL sales!

[Laygo]

Thanks, that's good news that myer are stocking the minifigs, means there's a good chance of actually getting them at 20% off some time.

If you didnt know I give 10% all the time if you are a member of my store. And besides you probably have more chance of actually getting what you want from my store than a dpt store. And i probably ordered a lot more as well so they wont be gone in 5 minutes:)

Steve

[Clone-Trooper]

If you didnt know I give 10% all the time if you are a member of my store. And besides you probably have more chance of actually getting what you want from my store than a dpt store. And i probably ordered a lot more as well so they wont be gone in 5 minutes:)

Steve

Can we have 20%

:-)

[dotmike]

If you didnt know I give 10% all the time if you are a member of my store. And besides you probably have more chance of actually getting what you want from my store than a dpt store. And i probably ordered a lot more as well so they wont be gone in 5 minutes:)

Steve

If I may, can I ask a question about having a store that sells LEGO in Australia?

In your dealings with LEGO Australia when ordering stock, do you get the sense they know that both retailers like yourself and customers like most of us here are unhappy with the pricing situation?

I am of course assuming retailers are unhappy about it, as presumably the higher the RRP, the less you sell.

Has LEGO Australia made any attempt to explain or even justify the gross discrepancy between prices here and prices overseas?

[Laygo]

If I may, can I ask a question about having a store that sells LEGO in Australia?

In your dealings with LEGO Australia when ordering stock, do you get the sense they know that both retailers like yourself and customers like most of us here are unhappy with the pricing situation?

I am of course assuming retailers are unhappy about it, as presumably the higher the RRP, the less you sell.

Has LEGO Australia made any attempt to explain or even justify the gross discrepancy between prices here and prices overseas?

I will try and answer your questions the best i can....

I dont really have a great deal to do with Lego other than ordering stock which is mainly just done over the net.

If you are asking if i am unhappy about the higher RRP on the figures? im more than happy with a $4.95 RRP as they are a great selection of figures for under $5.00. If i didn't have the collectors figs the bulk of the figures in my shop would be Star wars figs and we all know how expensive they can be. These figs are a great cheaper alternative. I dont believe i have sold any less because they are dearer.

Lego Australia has not offered any reasoning to the difference in price and i have never even questioned them on it. But if i could speculate.....Prices in the US on many items are cheaper not just Lego. I certainly dont want to answer on Lego's behalf but my guess would have to be something to do with all prices on all consumer goods are priced against what the cost of living is in that particular country. For example the AVG weekly wages in the US is about half of ours. So it makes sense that there consumer goods in general would be about half of ours. So of course it makes sense that people will firtly compare our prices to the US prices and then subsequently on many occasions buy from overseas. If it was legal to buy cars online from overseas im sure we would importing them more as well.

If the Aussie dollar loses strength over the next month and the US dollar gains strength then prices of these items would be more comparable.

Just my 2 cents worth.

Steve

[Clone-Trooper]

I will try and answer your questions the best i can....

I dont really have a great deal to do with Lego other than ordering stock which is mainly just done over the net.

If you are asking if i am unhappy about the higher RRP on the figures? im more than happy with a $4.95 RRP as they are a great selection of figures for under $5.00. If i didn't have the collectors figs the bulk of the figures in my shop would be Star wars figs and we all know how expensive they can be. These figs are a great cheaper alternative. I dont believe i have sold any less because they are dearer.

Lego Australia has not offered any reasoning to the difference in price and i have never even questioned them on it. But if i could speculate.....Prices in the US on many items are cheaper not just Lego. I certainly dont want to answer on Lego's behalf but my guess would have to be something to do with all prices on all consumer goods are priced against what the cost of living is in that particular country. For example the AVG weekly wages in the US is about half of ours. So it makes sense that there consumer goods in general would be about half of ours. So of course it makes sense that people will firtly compare our prices to the US prices and then subsequently on many occasions buy from overseas. If it was legal to buy cars online from overseas im sure we would importing them more as well.

If the Aussie dollar loses strength over the next month and the US dollar gains strength then prices of these items would be more comparable.

Just my 2 cents worth.

Steve

Very diplomatic...... whilst your right that the US does have a lower wage, they also have 300 million people

compared to 25 million in Australia, so statistics alone would imply that price will always be cheaper in the

US because they have more buyers and more competition for sales.

Either way you look at it, Australian still pay far far more then the US, but then again so do certain

European countries compared to the Australian dollar, so it swings around.

For those unhappy about the prices, just do what I do, wait for some great store sales to come along (20% or more)

and for what you can't get in Australia then you can order from the US. The price in the US + shipping usually

still works out cheaper then RRP in Australia anyways, and if it's discounted in the US then you save even more.

I hate to send my dollar overseas instead of a seller here in Australia but you'll find more and more people will

start doing it with the cost of living going up, Lego's price rises and then the higher RRP prices Australians get.

For those who order Lego sets from the US, were only a small minority which wouldn't even effect Lego profits, but

seeing store like Target, K-Mart and BigW with fully stocked shelves of Lego certainly proves that consumers might

not be purchasing so much anymore because they can't afford the RRP prices set in Australia, they may infact look to

items such as Megablocks or Nanobricks since they're cheaper and often go on sale.

Even thought Australian consumers are still spending up apparently (unlike economies in the US or UK) it appears that

Lego sales are certainly slowing, they're just not flying of the shelves like they used too.........

For those that have read this far, bravo, I'll stop ranting now.

I know some of you will disagree with my views whilst others do see it my way, either way I do feel ripped off

for what we have to pay in Australia.

Keep on Nanoing......... (I hate Nanobricks)

[jonwil]

What I dont get is that we have declining sales of LEGO AND we have an exchange rate that is far better than it was this time last year yet our prices go UP (and I dont think it can be explained by the price of oil either). Raising prices in the face of declining sales isn't exactly a good business model...

[Clone-Trooper]

What I dont get is that we have declining sales of LEGO AND we have an exchange rate that is far better than it was this time last year yet our prices go UP (and I dont think it can be explained by the price of oil either). Raising prices in the face of declining sales isn't exactly a good business model...

Absolutely Agree.......

[guy montag]

What I dont get is that we have declining sales of LEGO AND we have an exchange rate that is far better than it was this time last year yet our prices go UP (and I dont think it can be explained by the price of oil either). Raising prices in the face of declining sales isn't exactly a good business model...

I didn't know Lego sales in Australia have been declining. Is there a link to this sort of information.? I actually have a theory as to why our purchase price is so expensive. I think its due to the fact that the major buyers, such as kmart, myer desire a large RRP. They probably purchase quite close to the U.S. retailers. They have the ability to discount heavily, to draw in the buyers, yet still make a very large profit. Big margin products are a blessing for big companies, they have so much room to move. I think this arrangement with Lego is not so unique and probably occurs with other brands. Hence the big Harvey Norman push for 10% GST on goods under $1000. They are seeing sales eroded by the internet, its not a landslide yet, but it could be, especially when consumers unite with other consumers looking for bargains with sites such as this.

If there is declining sales, Lego is probably trying to maintain profit growth. They way they do that is to sell sets with the Lego brand but with less traditional product and more marketing hype. Ninjago spinners are a perfect example. More licensed sets that have less brick content, and clever selling tactics to sell more product with more margin (series minifigs). I don't think they are taking into account brand damage, Since their target audience being kids don't have the discerning skills of an adult. Afols being only 10% (I think its more) of their market are an acceptable risk. Figuring since they are fans, they'll still buy...

The risks now are that 1) people have been so accustomed to 20% off and now 33%off (buy2 get 1 free). they will only buy lego at this time. 2) the internet and places such as bricklink will further erode domestic sales here. 3) brand damage due to poor quality plastic used and for blatant mercenary profiteering (series minifigs).

Time will tell if these risks are real and actually affect Lego Australia.

Edited January 21, 2011 by guy montag

[Laygo]

I didn't know Lego sales in Australia have been declining. Is there a link to this sort of information.? I actually have a theory as to why our purchase price is so expensive. I think its due to the fact that the major buyers, such as kmart, myer desire a large RRP. They probably purchase quite close to the U.S. retailers. They have the ability to discount heavily, to draw in the buyers, yet still make a very large profit. Big margin products are a blessing for big companies, they have so much room to move. I think this arrangement with Lego is not so unique and probably occurs with other brands. Hence the big Harvey Norman push for 10% GST on goods under $1000. They are seeing sales eroded by the internet, its not a landslide yet, but it could be, especially when consumers unite with other consumers looking for bargains with sites such as this.

If there is declining sales, Lego is probably trying to maintain profit growth. They way they do that is to sell sets with the Lego brand but with less traditional product and more marketing hype. Ninjago spinners are a perfect example. More licensed sets that have less brick content, and clever selling tactics to sell more product with more margin (series minifigs). I don't think they are taking into account brand damage, Since their target audience being kids don't have the discerning skills of an adult. Afols being only 10% (I think its more) of their market are an acceptable risk. Figuring since they are fans, they'll still buy...

The risks now are that 1) people have been so accustomed to 20% off and now 33%off (buy2 get 1 free). they will only buy lego at this time. 2) the internet and places such as bricklink will further erode domestic sales here. 3) brand damage due to poor quality plastic used and for blatant mercenary profiteering (series minifigs).

Time will tell if these risks are real and actually affect Lego Australia.

I have to agree. I have seen nothing myself to indicate that the sales Are decreasing. The other thing that i failed to mention was that Australia would have much higher costs in bringing the items into the country than say Europe or the US.

Steve

[AussieJimbo]

I think what retailers need to grasp is that many of us a waking up to the fact that we are part of a global market not the Australian market.

I feel very sympathetic to Mr Laygo because he clearly has a passion for supporting the Lego brand but he is not a charity and has to make money on his sales. Clearly what Lego charges him wholesale does not allow him to be globally competitive.

Nothing I've seen above justifies the extortionate RRP markup in Australia. Modular Fire Station, US RRP $149, Oz RRP $299 is one of the more shameful examples but the majority of sets are 50% to 75% above US RRP which is a disgrace.

It would be preferable to support local retailers but the bottom line is Lego Australia is ripping us off and ultimately damaging local businesses like Laygo. If I can buy it online at the foreign retail price, pay expensive on-off shipping and still make a good saving over buying local then I'll buy it overseas. Add the 10% GST if you like, it usually makes little difference to the large savings available.

Align local RRP's with the US dollar equivalent or lose many of my purchases to overseas retailers. It's as simple as that.

Gerry Harvey's campaign spurred me into action and I won't be looking back.

:classic:

I have to agree. I have seen nothing myself to indicate that the sales Are decreasing.

Do you have an indication of how much growth is being lost to overseas sales?

The other thing that i failed to mention was that Australia would have much higher costs in bringing the items into the country than say Europe or the US.

Steve

Yet I can pay the higher one-off costs of bringing a couple of packages into Australia, plus the US retailers original import costs, plus his profit margin and still come out in front.

:classic:

Edited January 21, 2011 by AussieJimbo

[guy montag]

I think what retailers need to grasp is that many of us a waking up to the fact that we are part of a global market not the Australian market.

I feel very sympathetic to Mr Laygo because he clearly has a passion for supporting the Lego brand but he is not a charity and has to make money on his sales. Clearly what Lego charges him wholesale does not allow him to be globally competitive.

Nothing I've seen above justifies the extortionate RRP markup in Australia. Modular Fire Station, US RRP $149, Oz RRP $299 is one of the more shameful examples but the majority of sets are 50% to 75% above US RRP which is a disgrace.

It would be preferable to support local retailers but the bottom line is Lego Australia is ripping us off and ultimately damaging local businesses like Laygo. If I can buy it online at their retail price, pay expensive on-off shipping and still make a good saving over buying local then I'll buy it overseas. Add the 10% GST if you like, it usually makes little difference to the large savings available.

Align local RRP's with the US dollar equivalent or keep losing many of my purchase to overseas retailers. It's as simple as that.

:classic:

I too feel for Aussie "small business", its getting crushed. Your right. There is no evidence to explain why an Airport set is $149 RRP being $50 above U.S. RRP, yet a Star Wars set is marked up 100% rrp such as the Clone turbo tank. The unfortunate reality is that its Aussie Big Business that is probably affecting the price we pay. I'm sure Laygo's purchase price is a lot higher than Myer. Myer probably gets sets at 50%- 60% off maybe more. Laygo may only get 30%-40%.if he's trying to match at 20% at what we have all been accustomed to he's only got 15% gross to work with. It's not much...

[Laygo]

I think what retailers need to grasp is that many of us a waking up to the fact that we are part of a global market not the Australian market.

I feel very sympathetic to Mr Laygo because he clearly has a passion for supporting the Lego brand but he is not a charity and has to make money on his sales. Clearly what Lego charges him wholesale does not allow him to be globally competitive.

Nothing I've seen above justifies the extortionate RRP markup in Australia. Modular Fire Station, US RRP $149, Oz RRP $299 is one of the more shameful examples but the majority of sets are 50% to 75% above US RRP which is a disgrace.

It would be preferable to support local retailers but the bottom line is Lego Australia is ripping us off and ultimately damaging local businesses like Laygo. If I can buy it online at their retail price, pay expensive on-off shipping and still make a good saving over buying local then I'll buy it overseas. Add the 10% GST if you like, it usually makes little difference to the large savings available.

Align local RRP's with the US dollar equivalent or keep losing many of my purchase to overseas retailers. It's as simple as that.

:classic:

I very much see your point about it being a global market and customers will always try and get the best deal and if thats means going overseas to do that then they often will. With your example about the Fire Station at this stage it would work out better financially if you bought it from the US but that set would command a postage price of around $50.00 So that gives you a total of $200USD and with our conversion rate it would be around the same but just 18 months ago the conversion rate wasnt so good. That same set would have cost around $250.00 AUD landed. Many people would have bought from an Australian store at that price as there wasnt enought of a saving.

So whilst retailers in Austrelia have to put up with that now things will do a full circle. We just have to look at how best to operate in the current climate for the interim.

Steve

[jonwil]

Another thing is that the big retailers (regardless of how good the dollar is or what wholesale price they pay) don't want to have the new product (which may have been purchased at a lower wholesale price for a given size set due to the favorable dollar) on the shelf at a cheaper price than a similar sized older set (e.g. compare the new police station to similar sized sets from last year that may have been bought when the dollar wasnt so good)

[peterab]

I have to agree. I have seen nothing myself to indicate that the sales Are decreasing. The other thing that i failed to mention was that Australia would have much higher costs in bringing the items into the country than say Europe or the US.

Steve

According to TLG company report Lego sales have improved in most markets in the last year (and from memory the last few years). The speculation is that in hard times people are turning back to quality products and Lego has benefited from this.

I'm not sure where you are all seeing shelves full of Lego either. After Christmas Lego shelves looked like locusts had been through in Melbourne, and from hearsay on the SLTC/SydLug mailing list it was similar there. Give a huge chunk of the population are covered in those two locations I'd say Lego is doing pretty well here, hence they won't feel much price pressure. Given that there appears to be many people buying up Lego on sale and selling it on eBay even above RRP in Australia I think the price must be OK for the majority of customers.

On the other hand since I'm building a train layout, I want lots of Lego, so it makes sense to me to buy as cheaply as I can to stretch my limited budget as far as I can. Buying from the US is a good way to do that. I think AFOLs have a different perspective to most customers since we have a better overview of global prices. Most people who are just getting a gift for their kids won't be bothered to get it from the US unless they can't find what they want or something close to it at there local shops. I'm sure places like Bricks to the World wouldn't survive if most people found RRP too high.

[AussieJimbo]

I can report that Canberra shelves were ransacked at Xmas too. It's a good thing to see it remains popular.

My issue isn't with demand and as a consumer I have no access to any meaningful information about it by the price information that is freely available online is irrefutable. I will wear moderately higher Australian prices to reflect things like better wages and conditions, government regulation, etc but I can't accept that the current markups reflect this.

I'm open to be persuaded otherwise in the unlikely event that anyone is able to share real figures with me. If overheads really are that bad then retail in Australia is in serious trouble.

Thanks Steve from Laygo for engaging in the debate. It's good of you to share your perspective on this.

:classic:

Edited January 21, 2011 by AussieJimbo

[AussieJimbo]

On the other hand since I'm building a train layout, I want lots of Lego, so it makes sense to me to buy as cheaply as I can to stretch my limited budget as far as I can. Buying from the US is a good way to do that. I think AFOLs have a different perspective to most customers since we have a better overview of global prices.

Yes, we do have a different perspective. I'm in the same position where I want to achieve more with my building dollar and there is no alternative but to look abroad. It really is a shame that an Aussie retailer doesn't get a piece of that action but the economics are straight forward. At least Qantas and their courier guys out at Mitchel got a few scraps off UPS's table last time.

Most people who are just getting a gift for their kids won't be bothered to get it from the US unless they can't find what they want or something close to it at there local shops. I'm sure places like Bricks to the World wouldn't survive if most people found RRP too high.

BTTW handled my order well; nicely packed, prompt and affordable delivery and competitive with Aussie RRP. Relatively small order so I couldn't have done much better landing it here from overseas.

They had what I wanted at a good price by Australian standards so they got my business but you can't "un-know" what you could have got it for overseas.

:classic:

[Ouchkabibbles]

Enough has probably been said on the topic of overseas purchasing, however, the one thing that gets me the most isn't the gap in RRP, its the level of discounting that's also available. I weep whenever I see a buy 2 get 3rd one free deal with no restrictions that you cant access without knowing someone who lives in the US. As a modular/train collector the price gap becomes ludicrous as you can get 3 modular houses for the price of 1 fire brigade in AU! Even being gouged with shipping makes those economics impossible to beat locally, even with a 20-30% off sale.

[Mister Phes]

I think what retailers need to grasp is that many of us a waking up to the fact that we are part of a global market not the Australian market.

Yeah, tradtional retailers aren't keeping up with consumer buying trends. So rather than bitching about taxing consumers further they should make greater efforts to accomodate their needs. Primarily by making their stock available for puchase online at prices competitive to the international market.

I'm sure places like Bricks to the World wouldn't survive if most people found RRP too high.

Recently I've been talking over the phone with the manager of Bricks to the World and he said they are doing quite well. He also mentioned the LEGO Group considers BTTW as a benchmark for online LEGO retailers.

Which is no surprise because go the extra mile by attending events and conventions, and providing sponsorship. They've even sponsored Classic-Pirates.com's Talking Skull promotion.

Obviously these efforts are targetted at an AFOL consumer base, but could you imagine Kmart, Big W, Toys R' Us, etc. putting in such efforts to reach their consumers?

[Strand]

Yes, we do have a different perspective. I'm in the same position where I want to achieve more with my building dollar and there is no alternative but to look abroad. It really is a shame that an Aussie retailer doesn't get a piece of that action but the economics are straight forward. At least Qantas and their courier guys out at Mitchel got a few scraps off UPS's table last time.

The whole 'Aussies are getting screwed' isn't a Lego-only thing. If you have other hobbies like gaming (as I happen to be), it seems local retailers still believe the Aussie dollar is only worth 60 US cents.

I understand that Lego has to ensure their long-term bottom line, rather than daily changes in currecy rates, I'm not expecting 1:1 AUD/USD parity for our Lego sets, but surely there can be a nice middle ground.

Yes, we're all aware of import taxes, GST, shipping costs, economies of scale etc. But surely even those factors combined can't account for a 40% RRP discrepancy.

[distortme]

Ok back on topic :)

With 15% off still at Toy Corner in SA all new stuff which is at standard RRP in discounted - including Series 3 minifigs.

[lightningtiger]

Ok back on topic :)

With 15% off still at Toy Corner in SA all new stuff which is at standard RRP in discounted - including Series 3 minifigs.

Series 3.....I just spoke to Heath an hour ago....he didn't tell me they had series 3 - I wonder what else they have.....might go and see Darren tomorrow !

Oh, by the way Toyworld Parafield has SW and police sets....also series 3 fig's !

Keep on shopping everyone !

[Notorious Guf]

Ok back on topic :)

With 15% off still at Toy Corner in SA all new stuff which is at standard RRP in discounted - including Series 3 minifigs.

Thanks, the complaining was getting a bit tiring.

Series 3.....I just spoke to Heath an hour ago....he didn't tell me they had series 3 - I wonder what else they have.....might go and see Darren tomorrow !

Oh, by the way Toyworld Parafield has SW and police sets....also series 3 fig's !

Keep on shopping everyone !

Name dropping much? LOL

[slopemodified]

I find this conversation on pricing to be interesting. I'm always comparing the prices of sets here to the US. I'd like to know why we get ripped off, since it could be more of the same this year.

BTTW handled my order well; nicely packed, prompt and affordable delivery and competitive with Aussie RRP. Relatively small order so I couldn't have done much better landing it here from overseas.

They had what I wanted at a good price by Australian standards so they got my business but you can't "un-know" what you could have got it for overseas.

:classic:

Did you go with their flat rate postage, or would you recommend registered post?

I'm thinking of ordering - they have the Mars Mission big spacecraft for $84, sounds good to me!

[Clone-Trooper]

Ok back on topic :)

With 15% off still at Toy Corner in SA all new stuff which is at standard RRP in discounted - including Series 3 minifigs.

Anyone know when their 15% off ends?

[AussieJimbo]

Did you go with their flat rate postage, or would you recommend registered post?

I used registered post, haven't used their flat rate postage but I don't think it would be a problem. I just prefer the little bit of extra peace of mind registered post gave me. Not sure how much extra is was.

:classic:

Edited January 23, 2011 by AussieJimbo