For those who frequent the community forum, you'll often see me reviewing Oxford bricks, this was for a variety of reasons (good quality, price, lack of space to expand significantly, uniqueness, etc)

well now I'm moving into a much larger space, and I'll have an office with shelves that I can fill up within reason ;)

So I started poking around Lego in Korea.

Despite the price, it does usually get more shelf space than Oxford at the local stores. But after checking some prices, I realized the prices are being inflated not just by Korean sellers, but by Lego themselves.

I have mostly been collecting Oxford Military, but after moving I wanted to expand into City/Town. Oxford makes some interesting vehicles, but they don't make a lot of good buildings for town stuff.

One thing I'd been interested in, since reading a review here was 8404 the transport set from Lego. Priced around $99 on Lego.com

I jumped over to the Korean online mega shopping place, Gmarket, which is known for having the lowest prices, and they were charging 140,000 korean won for it. At current exchange, that's $124.

So I thought, how about shipping from Lego.com?

Ah, they have a Korean region. So I select it, find the set and Lego is charging 145,000 Korean won for the set locally. Nearly $128. You could ship the set here for less likely via standard post than the mark-up Lego is charging. It certainly can't be costing them that much more to move the item to Korea than the US.

On a price per piece basis, it's really putting it up there, especially when compared to local products. The mark-up on the road plates is slightly better, $16.80 vs $14.99. Around 12%. Far more reasonable than nearly 30%.

Before going to the site, I'd just always attributed the higher price to local mark-up and not Lego themselves. I don't know if Lego is doing themselves any favours in secondary markets by charging such ridiculous mark-ups.

It's been a while since I talked about it, but Lego prices in Japan are similar. I think the key thing to keep in mind isn't that Korea is more expensive than other places, but that America is cheaper. Even in Canada, they are at least 20% more expensive, and there really is no justifiable reason for that, other than TLG giving special treatment to the American market.

I don't know how it is in Korea, but in Japan, the set Lego price can be up to double America's price, though it's gotten better as the value of the dollar has dropped the past few years. Here's an example:

8095 Grievous Starfighter is $49.99 on shipping at home. Lego's set price in Japan is ¥9,450, or $122.54 (I'm shocked to see that, I just chose it at random). But nobody sells it for that. Toys R Us sells it for about ¥7000, and Amazon ¥6000. So the stores' regular price "saves" you money, as they like to advertise.

If you're spending a lot, it's worth it just to make a Bricklink purchase. Occasionally, I'll save up a few months purchases and buy a few sets there. With the shipping from the States, I save about 20% of the Japanese price. Not a lot, but it helps.

Funny thing is, I expect Korea to have better prices than Japan. Korean companies sell Lego on the Yahoo Auction (kind of like e-Bay) at a price that's competitive with Amazon, after shipping.

Good luck! And maybe get some suggestions from FallenAngel, since he seems to both buy Lego and live in Korea.

Hi

do not compare your local prices with the US ones. They are allways the lowest avalable. I am german and Denmark is quiet neerer to me than most of the german towns...

The Robie House for example cost 199€ and it is available at amazon US for ~100€...

Every Lego there is cheaper than here. Even german cars are about 30-50% off in the US although they have been produced here.

Do not worry ;)

Dino

From my experience, markups in Korea have generally been much better than the markups I’ve heard of in most European countries, and looking at the prices def has given, definitely better than prices in Japan; on average, price discrepancies are usually closer to the smaller 12% you mention than the 30%. Then again, all of my Korean LEGO shopping has been in-store as opposed to online, so it’s possible there could exist something to cause online vendors to crank up the prices.

Since you mentioned price per piece, I think we should all remember that that is usually not the best indicator of how a set is fairly priced (7930 and 7931 being only the most obvious example). Looking at price relative to weight would probably be a better way to go. And of course I needn’t echo the fact that LEGO is just cheaper in the U.S. for whatever reason. As with expensive LEGO in any other country, I take it as it is and keep my buying to a minimum. Bricklink is your friend...

Since you mentioned price per piece,[/quote[

When I said that I meant it was further increasing the disparity between Oxford and Lego. 1000 piece Oxford set was running around 51,000won, 1000 piece Lego set, around 110,000 on the US site, but now 145,000 on the Korean site.

Checking a random set I saw in Emart today vs online price

6918 blacksmith att

$9.99 USD

16000won on the Korean site, but 11,600 + 2,500 shipping on gmarket. around 14,100, $12.61. About 26%

At emart.. hmm.. 12,900. 11.54, 15%. Not bad.

Smaller sets don't have as big a price disparity.

hmm..now checking 7946 the castle..

$99.99

vs 104,000 won at emart.. $93

apparently I need to buy all the Lego at Emart.

Unfortunately they don't sell 8404. There is a mark-up on some sets, but apparently not all of them. It seems emart still has 7946 in stock. Too bad I don't want to collect that right now. Apparently there is someone selling 8404 for only 108000 won over at the interpark auction site. I've never seen such price disparity against Gmarket before. Maybe disregard..apparently Korean Lego prices aren't all that bad.

Since you mentioned price per piece,

When I said that I meant it was further increasing the disparity between Oxford and Lego. 1000 piece Oxford set was running around 51,000won, 1000 piece Lego set, around 110,000 on the US site, but now 145,000 on the Korean site.

Ah, I see I misunderstood.

Checking a random set I saw in Emart today vs online price

6918 blacksmith att

$9.99 USD

16000won on the Korean site, but 11,600 + 2,500 shipping on gmarket. around 14,100, $12.61. About 26%

At emart.. hmm.. 12,900. 11.54, 15%. Not bad.

Smaller sets don't have as big a price disparity.

hmm..now checking 7946 the castle..

$99.99

vs 104,000 won at emart.. $93

apparently I need to buy all the Lego at Emart.

These sound more in line with the rates I've been seeing.

₩108K is a really great deal for 8404, by the way.

One little thing making prices better here in Japan is that sales tax is only 5%, and is always included in the price. In the States, tax is added in after. What's Korea's system like?

I believe sales tax is a little higher in Korea, but it's also included in the price.

I am really curious why the price in US is the lowest? because this is the biggest consumer market? because the debt US have? because unfair trading?

by the way, actually I do feel I intend to spend more because it sounds much cheaper here.. (especially a lot of sales going on :( )

Hi

do not compare your local prices with the US ones. They are allways the lowest avalable. I am german and Denmark is quiet neerer to me than most of the german towns...

The Robie House for example cost 199€ and it is available at amazon US for ~100€...

Every Lego there is cheaper than here. Even german cars are about 30-50% off in the US although they have been produced here.

Do not worry ;)

Dino

Hi

there are several reasons why the US market seems to most commercial goods to be the cheapest:

- high(est) competitive situation

- large(st) single market

- low transporting costs (logistics)

- good infrastructure

- many clone/co brands

I have a swiss friend that have been asked to bring a swiss watch (3000€ in germany) to his US friend. Although the watch is build close to him it list pricewas 2200€ in the US and 4500€ in switzerland....

;)

Dino

I'm normally in the UK where it goes for the price on the website normally, however have been in Jakarta for few days and just popped into a shopping mall behind the hotel. Could not believe the prices they are charging, nearly double on most sets!

Checking a random set I saw in Emart today vs online price

6918 blacksmith att

$9.99 USD

16000won on the Korean site, but 11,600 + 2,500 shipping on gmarket. around 14,100, $12.61. About 26%

At emart.. hmm.. 12,900. 11.54, 15%. Not bad.

Smaller sets don't have as big a price disparity.

hmm..now checking 7946 the castle..

$99.99

vs 104,000 won at emart.. $93

apparently I need to buy all the Lego at Emart.

Unfortunately they don't sell 8404. There is a mark-up on some sets, but apparently not all of them. It seems emart still has 7946 in stock. Too bad I don't want to collect that right now. Apparently there is someone selling 8404 for only 108000 won over at the interpark auction site. I've never seen such price disparity against Gmarket before. Maybe disregard..apparently Korean Lego prices aren't all that bad.

I´m not used to talk in Eurobricks, but since this is a complain that we have in common I´ll show a little of the nightmare it is to buy Lego in Brazil...

6918 blacksmith att - $9.99 USD

R$ 49,90 / US$ 29.41 - Walmart.com.br

7946 the castle.. - $99.99

R$ 599,90 / US$ 352,94 - No more on Walmart.com.br

7189-1: Mill Village Raid $69.99 / 7189 - LEGO - Kingdoms - O Assalto à Aldeia do Moinho

R$ 399,90 / US$ 235,29 - Walmart.com.br

Bricklink is a bit cheaper, but anything above 1KG costs more than US$60 just for shipping... I know this topic is about South Korea, but in Brazil we just don´t know what to do anymore to solve this nightmare about the Lego pricing.

Edited November 14, 201113 yr by Fantu

This topic surfaces from time to time, you can make some grumble about it, but it doesn't really help. Lego in Hungary isn't cheap either. I often find myself thinking hard over 30-50% discounts (they are quite rare here) and finally not buying the sets for 50% (let's say, full US price). If I need something badly, usually I order it from BL. Luckily I'm mostly into classic town and my son is too young yet to appreciate "small" lego.

You have to remember that the US prices do NOT include any sales tax, this is added in the later stages of placing an order depending on what state/city you live in.

Most other Lego stores around the world have VAT/sales tax included in the price. When you consider that in the UK the vat/sales tax is 20% (similar in most of europe) and is included in the headline price you quickly understand the price difference.

Selling a product globally in vastly different markets, with different tax structures, different currency's and different sale volumes will always produce pricing variations. This is not unique to lego.

You have to remember that the US prices do NOT include any sales tax, this is added in the later stages of placing an order depending on what state/city you live in.

Most other Lego stores around the world have VAT/sales tax included in the price. When you consider that in the UK the vat/sales tax is 20% (similar in most of europe) and is included in the headline price you quickly understand the price difference.

Selling a product globally in vastly different markets, with different tax structures, different currency's and different sale volumes will always produce pricing variations. This is not unique to lego.

To a certain degree yes. However, the price difference should not exceed normal postage from one country to another. If it does, there is something wrong with the pricing structure, because you can't justify it otherwise.

in Korea VAT is 10%. Most US states have tax rates lower than that.

To a certain degree yes. However, the price difference should not exceed normal postage from one country to another. If it does, there is something wrong with the pricing structure, because you can't justify it otherwise.

in Korea VAT is 10%. Most US states have tax rates lower than that.

I realize this is slightly off topic, but recall CopMike's recent post in the Questions thread:

Hi!

This is a question that pops up now and again. Here are some official answers from TLG:

From LEGO S@H Knowledge Base

Why are there differing prices for each country when shopping online?

When comparing prices for LEGO sets in different countries, for example in our online shop at www.LEGOShop.com, please bear in mind that country-specific factors play a part. These are outside of our control, i.e. differences in value-added tax, and contribute to products being offered at different prices in different countries.

From Mads Nipper LEGO’s Corporate Management

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.

And from Steve Witt in the Ambassador forum:

okay guys, while I understand things being expensive is frustrating, there is a very hard reality that you guys need to understand. When setting prices in various countries it is doen based on the entire market in that country for EVERY product from EVERY company. The pricing is set when a team of people look at everything in a country and decide that this is a fair price for us to charge in this country where we're able to make the proper margin on our products (which are very expensive to make mind you). Its for this reason why every country has different pricing.

If Hasbro is going to charge $30 for a product they charge $20 in the US, and $25 in Canada. If a dishwasher is $100 more expensive in Great Britain than it is in Germany. These trends don't generally limit themselves to just one brand or one type of product. The entire market of a country is set at certain levels and within these levels we set our prices accordingly to fit into what we're able to fairly charge in that country when compared to every other company out there. This is why 'Cost of Living' is higher or lower depending on what country you're from.

This is just the reality of global economics and its not something that is going to change, and honestly its not really as unfair as you guys think it is, its just the way it is. Its also an argument I'm NEVER going to win with fans, and I can't blame fans for not liking it.

When I was at BrickWorld doing my Q&A one of the questions I got was "why doesn't LEGO clearance products anymore?" my answer was "because you only clearance products that aren't selling and we're having no problem selling our products." Later this same person complained that they can't afford LEGO unless its on clearance. The hard answer there becomes that LEGO is a Premium product no matter where you are and its also expensive everywhere.

Prices will go up or down based on how well LEGO sells. If we're selling LEGO based on the market in a country and we're having no problem selling the product, it would be foolish to lower our prices. in many countries if we ever lowered our prices we wouldn't get any value from doing business in that country and would start losing money. this is where different import taxes, regulations, etc. come into play.

Someone commented that we're slow to answer this question, its mostly because its the toughest question to answer because I know no matter how I answer it, you're not going to like.

Anyways, here you are and I'm happy to follow up on this.

Steve

If Hasbro is going to charge $30 for a product they charge $20 in the US, and $25 in Canada. If a dishwasher is $100 more expensive in Great Britain than it is in Germany. These trends don't generally limit themselves to just one brand or one type of product. The entire market of a country is set at certain levels and within these levels we set our prices accordingly to fit into what we're able to fairly charge in that country when compared to every other company out there. This is why 'Cost of Living' is higher or lower depending on what country you're from.

There is an unfortunate problem for him. If he wants to talk about markets, there already exists a construction block toy industry in this country and on a price per piece count, Lego has priced itself WELL above that existing market. While I agree it might cost them a little more to ship the stuff here, than to the US, that cost is eaten up in the volume of their shipments. I can guarantee you that the cost of any employees they have here, as well as commercial space is cheaper than the US.

Overall the cost of living is lower in Korea than the US, so again the logic doesn't make any sense.

I'd have to sample far more set prices, but part of his answer almost sounds like he's using the European market to prop up the American market.

As you highlighted my main point in my last response, I'll repeat again because it is very important:

If I can send the same item to Korea via regular post, cheaper than it can be bought in Korea, then there is a problem with the pricing. Why doesn't Lego just ship stuff to Korea from the Lego US shopping site if it is so expensive for them to do business in a place where the minimum wage is $4/hour?

Edited November 15, 201113 yr by crossmr

As you highlighted my main point in my last response, I'll repeat again because it is very important:

If I can send the same item to Korea via regular post, cheaper than it can be bought in Korea, then there is a problem with the pricing. Why doesn't Lego just ship stuff to Korea from the Lego US shopping site if it is so expensive for them to do business in a place where the minimum wage is $4/hour?

The terms "fair" or "righteous" are unknown to a sales department. Your problem is that you want to justify pricing. The short answer:

If they CAN sell for that high price, they WILL sell. If the Lego won't sell at that price, they will lower it. If they reach the profit limit/ "premium toy" price limit, they won't sell Lego at all.

The terms "fair" or "righteous" are unknown to a sales department. Your problem is that you want to justify pricing. The short answer:

If they CAN sell for that high price, they WILL sell. If the Lego won't sell at that price, they will lower it. If they reach the profit limit/ "premium toy" price limit, they won't sell Lego at all.

Unfortunately that isn't in line with the justification given for the prices. If you read it again, they're clearly trying to claim that the price is a reflection of the cost of doing business in various countries. Unfortunately that simply doesn't add up.

Unfortunately that isn't in line with the justification given for the prices. If you read it again, they're clearly trying to claim that the price is a reflection of the cost of doing business in various countries. Unfortunately that simply doesn't add up.

It's my opinion vs an unofficial statement someone told us to make TLC look a bit nicer :)

You are an adult, we are just giving you input for you to develop your own opinion, don't expect all the answers to match.

Everything is cheaper in America. It's the biggest consumer market in the world, so fixed costs are pared over a wider population base. Plus, it's a low tax country.

If one thinks the price differences in LEGO is bad, I suggest you don't look up how much cheaper a car is in America, even one imported from Europe.

The Korean prices feel very similar to the Australian prices for mine.

Normally something like Lego I would expect to be cheaper in Korea but perhaps there is a sizeable import tarriff on Lego since their is a domestic competitor.