The different prices on LEGO in the US vs. Europe

[brickzone]

The big anomalies are France and Finland, and here is where really I don't get it. For example the Emerald Night costs ~90e all around the Euro countries, except France (~100e) and Finland (~110e).

And Ireland, €102 for Emerald Night.

[MetroiD]

IF it ever gets imported to Bulgaria, it will cost AT LEAST 130eu... Just like Town Plan a year or so ago: originally priced at approx. 150 eu, it was imported to bulgaria at the price of, surpise surprise, 220 eu. How sweeeeeeeeeet.

[Zorbas]

Just like Town Plan a year or so ago: originally priced at approx. 150 eu, it was imported to bulgaria at the price of, surpise surprise, 220 eu. How sweeeeeeeeeet.

I called yesterday a LEGO shop here in Greece to ask them about Town Plan because i'm interested in buying it.. They have only one left and the price is €229. I really want that set and i still can't make up my mind of buying it or not...

[Kogyik]

A funny thing:

I do not know if someone this still knows but in one of the phases in the establishment of Europe… our lords in their ivory towers then said that in every European country the prices of the products would be the same (food and non-food). I believe it was in 1993. At least that have the Belgian political leaders proclaims on television. In other words if you bought a hamburger at McD in Belgium then this hamburger will have the same price as at McD in France. So also for Lego, Playmobil, Ikea, Chanel, Dior, ect. Up to this day I have not seen much of it.

Why Would you want to pay the same price for McD's?

If you can buy a product cheaper somewhere else wouldn't you go there instead?

Example: I go to Brcklink find a minfig I like but it is listed in 100 different stores with varying prices from $2 US to $5US. Now all the stores that list it at $2-$3.50 are in europe so I would be paying certain taxes to bring it here, which brings the prices up to $4-$5.50. The Lowest price I see for a US store is $3.75 so I get that one because it is cheaper than the others.

Quick Question About VAT

How much does VAT increase the base price?

They are talking about this in the US government. We don't have a Federal Sales Tax, Only State Sales Tax.

[Zorbas]

If you can buy a product cheaper somewhere else wouldn't you go there instead?

Example: I go to Brcklink find a minfig I like but it is listed in 100 different stores with varying prices from $2 US to $5US. Now all the stores that list it at $2-$3.50 are in europe so I would be paying certain taxes to bring it here, which brings the prices up to $4-$5.50. The Lowest price I see for a US store is $3.75 so I get that one because it is cheaper than the others.

But that's the issue here.You are comparing two different regions.European Union was supposed to be one market, trying to have the economy figures the same -to some extend- in every EU country.What you're saying, and is correct, has to do with free market economy and antagonism. There is no argue about that.

Quick Question About VAT

How much does VAT increase the base price?

They are talking about this in the US government. We don't have a Federal Sales Tax, Only State Sales Tax.

Here in Greece, anything that has to do with nutrition has a 9% VAT increase on the base price. All the other products have a 19% increase.

[Christian]

Quick Question About VAT

How much does VAT increase the base price?

They are talking about this in the US government. We don't have a Federal Sales Tax, Only State Sales Tax.

VAT varies from country to country. For example here in Denmark it is 25% added to the base price on everything. In other countries the VAT depends on the type of product, i.e. food, toys, books etc.

[larry marak]

Could it just be that its a lot more expensive to do business in the Eurozone than in the U.S. It sure sounds like each country still requires separate regulations, oversights, and taxes at multiple steps from Billund to the local store. In the U.S. Lego just deals with three outlets, their own stores, a handful of huge retail corportations, who receive priority shipping, and the independent toy dealers, who receive 2nd class treatment compared to the big box chains. Anywhere in the continental U.S. you are more likely to find Lego at a TRU, Walmart or Target than at a toy store, and in each case the merchandise goes from the factory to just one distributing center to a company-owned retail outlet.

[Toth]

Maybe it's a subject people already started here but as i didn't find any topic like this, i had to start one.

Sorry if you already debated about it before...

Why Lego is making so big difference of price inbetween US, UK and Europe...I give some different exemple:

Troll castle 7097:

USD 99,99

GBP 73,39 approximatly USD 121

Euro 87,99 approximatly USD 126

Republic Attack Gunship 7676:

USD 119,99

GBP 83,19 app. USD 138

Euro 129,99 app. USD 186!!!! :(

Small set Agents 8967

USD 9,99

GBP 8,79 app. USD14,5

Euro 11,50 app. USD 16,5

And it's like that with all the sets... I don't know if there is worst than the Republic Attack Gunship difference of price.

I didn't look at all the sets.

But here we can see a difference of USD 66 !!! Why?

Are European this rich that they can be taxed 50% more. what justify such a difference??? Only taxes? I hardly believe...

It's not hard to understand the succes of Ebay and the lack of sells of Lego in Europe after that.

I personnaly win money buying my lego sets on Ebay in the us...Even with high shipping costs.

It's a good business for you lucky guys living in US. Just buy in big quantity lego sets and put them on Ebay!

Yo will be cheaper than lego themselves in Europe!

I continu with my exemple:

Republic Attack Gunship 7676: USD 119,99

Shipping cost for France for the RAG is 45,50 USD (USPS Priority Mail International)

Grand total for me to recieve it in France USD 165,49

In France if I buy it to Lego shop: 129,99 Euros + 6,50 Euros Shipping cost

Grand total of 136,49 Euros so a total of USD 195,5

So all of you US guys got a profit margin of USD 30

So let's go and totaly kill Lego European site! Simply Unusefull!

I decided not to buy anymore to them. If someone is ok here, to buy for us, poor European customers! :)

We can pass commands, pay via paypal and even give extra money for service!

[Jameseh]

Many threads on this, the search function (or you actually looking yourself) is your friend.

[blueandwhite]

This topic has been discussed to death and the discussion often ends up a bit intense. It's just one of those things that AFOLs have come to accept. It certainly isn't a phenomenon unique to LEGO .

Build and be happy .

[Darth Legolas]

I feel so lucky. Maybe it's the size. We Americans like to well...anyways, America has a whole lot of kids, because the whole population is larger than the UK themselves, so maybe they lower the price their because they have more money in total. And for the rest of Europe, no clue. I just think you shouldn't hate me because I am American!

[CP5670]

See this thread. The biggest factors seem to be higher taxes and less competition from other toys, although there are other aspects to it as well.

We Americans like to well...anyways, America has a whole lot of kids, because the whole population is larger than the UK themselves, so maybe they lower the price their because they have more money in total.

That doesn't make any sense.

[Toth]

Thanks for the thread link! :)

I was sure it had been discussed already. Sorry i opened a new thread... :S

And Darth Legolas, I don't hate you because you are American! :D

Did i let understand something like this??

I hate Lego's prices politic cause they take European people for "Milk cows" as we say here.

[blueandwhite]

I hate Lego's prices politic cause they take European people for "Milk cows" as we say here.

I don't think LEGO sees anybody that way. Most non-US regions pay just as much or more for LEGO than Europe. While the price discrepencies certainly feel unfair and can lead to frustration (I feel it too), it's important to remember that the US is a unique entity for LEGO pricing. Most other regions pay as much or more than you do in Europe.

[puddleglum]

US prices do not include any taxes. Do those Euro and Pound prices include VAT?

[brickzone]

US prices do not include any taxes. Do those Euro and Pound prices include VAT?

Yes - 21.5% here in Ireland. But those don't explain discrepencies as vast as exist in many cases.

City Corner is €60 for Ireland, but €50 for Germany. Now, I believe Germany is 19% sales tax, so the extra 2.5% tax here in Ireland should mean a difference of an entire ONE euro five cents (50/1.19=42.02, 42.02*1.215=51.05). Even considering Ireland as prepared to pay more, surely anything more than €55 is simply gouging Irish customers for the sake of it.

[Capt. Kirk]

I found this on BrothersBrick.

Brothers Brick: I’m sure many LEGO fans across the world have wondered why the US has the lowest LEGO prices while countries in Europe and Asia have significantly higher prices, oftentimes twice that of the MSRP (Manufacturer’s Suggested Retail Price) for a LEGO set in the US. There are even countries where LEGO costs up to three or four times the prices in the US. Here is the answer from Mads Nipper of LEGO’s Corporate Management.

Lego Company: Our selling costs in Europe and Asia are higher than in the US because of the size of US market and retailers (economies of scale). Furthermore, the US market is by far the most price competitive in the world. These factors combined mean that we have for years priced our products higher in eg Europe than the US. In recent years, the difference has been increased due to the weakening US dollar - but we have consciously decided not to let this (hopefully short term) weakening of the dollar hurt the US consumer. And in order to stay profitable as a company, we cannot decrease our European prices - especially seen in the light of increasing cost pressure on oil, labor etc. Finally, final pricing in the market place is obviously determined by retailers, which is something we cannot and will not influence.

[Fluyt]

"And in order to stay profitable as a company, we cannot decrease our European prices"

That is just stupid, they refuse to up the prices in the U.S. (they don't want the weak dollar to hurt those consumers), so they screw the rest of us (they obviously have no problem hurting the rest), nice...

Size of the market is a lame excuse, what about Germany?, those prices are very high as well.

[Perterz]

I'm European and I also hate it but why complaining on Lego being more expensive here while everything else is aswell (compare gas prices for example...)?! It's just the way it is, it's economics.

Makes me wonder tho, what's the avarage wage in the US per month?

edit: spelling..

Edited June 19, 2009 by Perterz

[CP5670]

Lego Company: Our selling costs in Europe and Asia are higher than in the US because of the size of US market and retailers (economies of scale). Furthermore, the US market is by far the most price competitive in the world. These factors combined mean that we have for years priced our products higher in eg Europe than the US. In recent years, the difference has been increased due to the weakening US dollar - but we have consciously decided not to let this (hopefully short term) weakening of the dollar hurt the US consumer. And in order to stay profitable as a company, we cannot decrease our European prices - especially seen in the light of increasing cost pressure on oil, labor etc. Finally, final pricing in the market place is obviously determined by retailers, which is something we cannot and will not influence.[/i]

Interesting. They obviously aren't giving us the full story here, although it should at least silence all the people who say that clone brands and competition for Lego is bad.

[runswscissors]

I'm European and I also hate it but why complaining on Lego being more expensive here while everything else is aswell (compare gas prices for example...)?! It's just the way it is, it's economics.

Makes me wonder tho, what's the avarage wage in the US per month?

edit: spelling..

Don't quote me as being exact, but if I had to guess, I'd say its in the $40,000 - $60,000. Things are certainly rough right now though with about 10% unemployment. But the exchange rates aren't too bad. I think they were much worse back around June, 2008.

Here's the most recent exchange rates I have from last week (6/12ish):

Canadian $ 0.89546

Australian $ 0.81236

Great British Pounds 1.65008

Euros 1.39616

So, one US Dollar would be ABOUT....

1.12 CA$

1.23 Aussy$

.60 GBP

.71 Euro

But I really don't think the largest difference is exchange rates. They are somewhat stable and even when they are shakey, large corporations can get much better deals because of the large volume of currency they go thru. My company does a fair amount of business overseas. One way we hedge our losses against currency changes is to have foreign currency accounts. We've got a Euro account for our French business, an Aussy account for our Australian business, etc. All local transactions go thru the account (We write checks directly out of the account for expenses and make deposits for sales). If my relatively small company does this, I'd imagine Lego does too. I can't imagine Lego is depositing US$ Checks into a Euro account. The bank KILLS YOU on exchange rates. All our transactions go thru a third party exchange company.

Exchange rates only apply (for us) if we need to fund accounts that are getting low (meaning that region is loosing money) or when we do consolidated statements. And its only a gain/loss on PAPER when we do the statements. Meaning, it isn't really a loss! Its like saying the new car you bought last week is worth $1,000 less then when you originally bought it. If you aren't planning on selling it this week, its current value is meaningless!

And, I believe its been stated several times before, but our prices are pre-tax and it seems European prices are after tax.

My final thought on this is price points. Retailers don't want to price things for 67.53 or even 43.00. They want things to be nice and round. I think they do a basic currency conversion and then round up to the nearest X5.99 or X9.99. So if an item is $20, they probably don't want to price it as 12GBP, so they bump it to up 15.99GBP.

Just a thought. Sorry for the long post and sorry if I duplicated anything written in the prior pages. I couldn't read thru all of them right now.

[larry marak]

I'm just a dyed in the wall open market believer. Lego prices in Europe will go down when there is more competition. If Lego has to sell products of equal quality to competitors that sell for half Lego's price, TLC will die on the vine. To the list of companies competing with TLG in Europe , the ailing Mega Bloks, Best Lock, Cobi of Poland, and K'nex (coming on strong apparently) we must now at Sluban of China. Sluban cut its eye-teeth cloning not Lego but Oxford of Korea, and is now of equal quality to the big guys. They now have a distribution arrangement in the Benelux countries and are looking for retailers. Their lego-compatible train sets sell for 30% of what TLG is charging in Europe, and half of what TLG is charging in the U.S.A. for its new battery powered trains.

[Etzel]

I'm not normally the person who complains about having to pay much more for the LEGO sets then people in other countries. I live in a country with high VAT and other taxes and I'm happy about that. But today I got a little confused

I've just bought the new Indy set 7196 Chauchilla Cemetery Battle in a local toy store here in Sweden. The price was 349 SEK just like at S@H which I thought was expensive but I boought it anyway because I really wanted the cool cemetery warriors. After I built it I logged in to EB and re-read the great review that Svelte made for the set to see if we had the same conclusions about the set. Then I saw that the price in $ was only 19.99 which to me looked very cheap. A quick calculation with the current exchange rate showed me this:

Price in Sweden: 349 SEK = $47.42

Price in USA: $19.99 = 136,19 SEK

That means the price in USA is less than 2/5 of what we pay in Sweden

Is there a reason for this enormous difference or is it just the way economy goes? I really didn't think the difference would be that high...

[blueandwhite]

I'm not normally the person who complains about having to pay much more for the LEGO sets then people in other countries. I live in a country with high VAT and other taxes and I'm happy about that. But today I got a little confused

I've just bought the new Indy set 7196 Chauchilla Cemetery Battle in a local toy store here in Sweden. The price was 349 SEK just like at S@H which I thought was expensive but I boought it anyway because I really wanted the cool cemetery warriors. After I built it I logged in to EB and re-read the great review that Svelte made for the set to see if we had the same conclusions about the set. Then I saw that the price in $ was only 19.99 which to me looked very cheap. A quick calculation with the current exchange rate showed me this:

Price in Sweden: 349 SEK = $47.42

Price in USA: $19.99 = 136,19 SEK

That means the price in USA is less than 2/5 of what we pay in Sweden

Is there a reason for this enormous difference or is it just the way economy goes? I really didn't think the difference would be that high...

I've noticed that licenced themes are considerably favourable for North American consumers. This may have more to do with the licence than the LEGO brand itself. In general, Canadians pay a bit more for LEGO than say Australians, however when it comes to the licenced lines we pay far less than most territories. This seems to be a fairly consistent rule of thumb as most licenced sets seem far more expensive outside of North America (beyond the standard pricing varriations).

[Etzel]

I've noticed that licenced themes are considerably favourable for North American consumers. This may have more to do with the licence than the LEGO brand itself. In general, Canadians pay a bit more for LEGO than say Australians, however when it comes to the licenced lines we pay far less than most territories. This seems to be a fairly consistent rule of thumb as most licenced sets seem far more expensive outside of North America (beyond the standard pricing varriations).

I see, thanks for explaining blueandwhite.

Do you, or anyone else, know why licensed sets are cheaper in North America?