This I understand. Not the differences between US & Europe in pricing. ;)

Why is that difficult to grasp? The United States is a much larger market (more demand allows lower prices), there are no taxes factored into the retail price, distribution costs are dirt cheap and fixed costs are much lower than in Europe. If you think the price difference between LEGO in the U.S. and EU is bad, I suggest not looking into how cheap a BMW, Mercedes, or even a Fiat or Smart, is in the United States. Everything is cheaper in America - a high demand, low cost, minimal import tariff, minimal regulation environment.

Edited August 27, 201113 yr by MAH4546

Why is that difficult to grasp? The United States is a much larger market (more demand allows lower prices), there are no taxes factored into the retail price, distribution costs are dirt cheap and fixed costs are much lower than in Europe. If you think the price difference between LEGO in the U.S. and EU is bad, I suggest not looking into how cheap a BMW, Mercedes, or even a Fiat or Smart, is in the United States. Everything is cheaper in America - a high demand, low cost, minimal import tariff, minimal regulation environment.

What people seem to forget is that I can order directly in the USA. Shipping will be between 10-20 dollar in most cases. And a lot of times there is no additional VAT or taxes when receiving them. Believe me I ordered various things out of the US.

When I order a cheap set it isn't worth it but for bigger sets or several sets it is cheaper to order in the US then to buy in Europe. Including extra cost.

So Lego is shooting themselves in the European foot. Except large chains like Toys r Us, they don't ship international, they have setups per counry/region.

Not really, most people will still buy in European stores and not do a deal in the US.

There are also quite a bunch of small online only retailers in Europe who place orders in the US, save money because of the bigness of the order and then sell the Lego sets under the European LEGO price.

Example, Fire Temple. LEGO shop prize: 129,99 euro. I paid 103,- in the Netherlands and I also seen it at 96 euro.

Lego is not cheap but offers excellent VALUE. Business 101 - never compete on price if you offer a premium product. Lego learned well from Jobs at Apple. Kudos.

I agree with your sentiment regarding value and a premium product. However, I think LEGO premium product practices have been in place for well over twice as long as Apple Inc. has been in existance!

LEGO est. 1932

Apple est. 1976

I haggled down a bootleg 900+ piece pirate ship for 16 USD overseas in China and was able to build it without it falling apart. I wouldn't mind if Lego's quality went down in order for price to go down.

I wouldn't mind if Lego's quality went down in order for price to go down.

I would pay double for LEGO's quality to return to what it was in the 1990's and before.

DaveE

So Lego is shooting themselves in the European foot. Except large chains like Toys r Us, they don't ship international, they have setups per counry/region.

Not really, most people will still buy in European stores and not do a deal in the US.

There are also quite a bunch of small online only retailers in Europe who place orders in the US, save money because of the bigness of the order and then sell the Lego sets under the European LEGO price.

Example, Fire Temple. LEGO shop prize: 129,99 euro. I paid 103,- in the Netherlands and I also seen it at 96 euro.

Lego isn't shooting themselves in the foot in any way. I guarantee they are drawing exactly the same profit from a set sold in Europe or the US. If anything they may get a slightly higher margin on sets sold into the US. The differences between US and Euro pricing are pass through costs. Shipping and Transportation, Taxes and Tariffs, Cost of retail space etc.

You're responding to a post from August 2011...

I haggled down a bootleg 900+ piece pirate ship for 16 USD overseas in China and was able to build it without it falling apart. I wouldn't mind if Lego's quality went down in order for price to go down.

The quality of LEGO has already decreased enough over the last few years. If it got worse I think I would stop purchasing LEGO altogether.

The price of LEGO isn't bad when you really think about it, with all the costs it works out mostly at between 10-16 cents a piece. Which isn't bad considering, transport, cost of oil, cost of development, possible licence costs and m

Room for profit.

You're responding to a post from August 2011...

Bah! I missed that

Edited April 1, 201311 yr by Faefrost