The different prices on LEGO in the US vs. Europe

[The Green Brick Giant]

Hasn't LEGO addressed this several hundred times?

The USA has more competition so the prices need to be lower, there are different taxes and such, more toys in gernal and so on and so on.

If it makes you feel any better LEGOs need to be cheaper here because we waste 50% of the income on health care.

[Etzel]

Hasn't LEGO addressed this several hundred times?

The USA has more competition so the prices need to be lower, there are different taxes and such, more toys in gernal and so on and so on.

If it makes you feel any better LEGOs need to be cheaper here because we waste 50% of the income on health care.

But my question was why licensed set was so much more expensive?

I know USA has cheaper prices in general but this was different I think.

[Shompis]

In Sweden, I have seen the prices go up roughly 10% during the summer! I was lucky to buy the City Corner for 450SEK locally, and then the same store increased the price t 500SEK just a couple of weeks later! Seen some technic legos also increased in price along with Star Wars. This is even true for some lego toys that are discounted. It can also be a sign of the toy stores struggling in 2009. I don't really know.

[united brick]

stop thretaning the americans (because well I am one) anyways its not glory I live in bentonvile (home of wallmart) no competition here yet

they cheat us by increasing the prices by 20 percent

[Dark Wanderer]

I see, thanks for explaining blueandwhite.

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

I don't know why, but I can take a stab at it: it might have something to do with that the most of the licensed themes (all?) come from U.S. franchises? Star Wars, Indiana Jones, etc. are all from there, so perhaps it has something to do with the license itself?

[muffinman42]

thats really unfair, since it shows lego can lower there prices but wont because theres no competition (which there is, just not in the form of construction toys).

and "we waste half our money on health care" is a bad arguement since thats like saying "i spend my money on the last set i brought, i should get the next one cheeper" or "i wasted half my money on food so i deserve cheaper lego than people who spent 1/3 of there income on food!"

[CP5670]

I would be interested to know if the price disparity is actually specific to Lego or if it exists in all goods in those countries. I was visiting Norway last week and looked around a few local toy stores while I was there. The Lego sets I saw typically had a 70-120% markup over the US prices, but that was in line with just about everything else I saw over there. Most things were around twice as expensive as what I'm used to seeing over here, and some electronics products I saw were 5 times as much. It's worth keeping in mind that the average incomes in many of these countries are also higher, although that doesn't entirely compensate for it.

Edited September 8, 2009 by CP5670

[Cwetqo]

It's the same with computer parts and electronics. Graphic card that costs 100$ (70euro) in the US is usually 100 euro in most european countries. regarding differencies between various european countris: I have been to most of them and the prices are roughly the same, at least in continental part (Germany, Austria, Italy, France etc...). In scandinavia the prices are higher, but people also earn more so it equals out. It's tough for a visitor though.

Lets say you go to denmark and you want to buy new modular fire station. In US it costs 100euro, in germany 150euro and in Denmark almost 200euro. My friend was in legoland in billund recently, but even if he is a huge lego fan, he came back with almost nothing, besides a few souvenirs. It's just too expansive.

[The Cobra]

I hope this makes a bit sense.

I tried a price comparison picking 10 Playmobil kits. USA prices are official form their online shop. UK and DE (and other Euro countries) prices are only available by registering, so I went on eBay and picked lowest and highest for new and buy it now in .co.uk and .de, no S/H included. Then I added lowest to highest, divided the total by 2 and converted it to US$.

Rates have been taken from the official ebay currency converter.

[prateek]

Instead of comparing Europe and USA, think about Canada! We are right beside USA, our dollar is worth almost the same, etc... so why is the price increased 5-15%?

[blueandwhite]

Instead of comparing Europe and USA, think about Canada! We are right beside USA, our dollar is worth almost the same, etc... so why is the price increased 5-15%?

It simply is the way things are.

This is one of those things that LEGO won't change anytime soon. The US may share a border with Canada, however pricing in the two countries is very different. On the whole, Canadian pricing for most goods is cheaper than it is in Europe but more expensive than the US. LEGO is no different. When you add in the taxes, Canadian prices on LEGO match up pretty evenly to the prices one would pay in most other territories (Europe & Australia for example). Even then we still fare better on certain licenced products such as Star Wars and Indiana Jones. Honestly, Canadian pricing has actually improved in recent years so I wouldn't be too upset.

[Capt. Kirk]

We walking in circles...

This is the answer from TLC (quote from BB)

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.

[Sir Norman Ray]

I simply accept the prices.

Gasp, horror, burn the witch, I hear you say.

But I believe in paying for quality. A few weeks back, I was at the toy shop I buy a chunk of my LEGO from (I like to support the smaller chains) and they had a clone, military brand in there. The ones that have noses. Now, they weren't next to the LEGO as such, as either side it was Playmobile or Star Wars, but they were opposite it. The prices were cheap, and I did consider getting a small set.

I stopped myself though as I knew it would be an inferior product.

There are more and more clone brands slowly appearing I think in the UK. I remember reading a few months back the patent or loophole LEGO had used for years to stop so many clone brands had been thrown out by the EU. And I have actually seen a small rise in them. So maybe, with a gradual rise of new construction toys in the EU, LEGO may be forced to drop prices to remain competitive here as well.

THats a maybe. I'm no economist, afterall, I work in a bank. (Great time as well...)

Just treat your hobby as what it is; a luxury. I used to pay through the nose for Warhammer 40,00. As previously stated, its not a needed item. Are you going to die without the new set? No. You're not. Yes, it is unfair, but in the end, moan , grumble and move on.

Besides, when I go out to the USA in OCtober for BrickCon, I;m going to be buying as much cheap LEGO as I can!

-Sir Norman "Has a mortgage, car and kitten to support." Ray.

[CopMike]

An answer from Steve from 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

[chriz]

In estonia legos cost twice more than in usa. In usa battel of endor costs about 99.99$ but in estonia it would be 215$. And estonia doesn't got eny road plates , special editions, advent calendars, and some other sets.

[larry marak]

If I read the statements above from the Lego group correctly, U.S. prices are lower because of 1. A large market inside one country 2. highly competitive sales enviornment. The EU has a larger population than the U.S.A., what it needs is true multinational retail chains. If Lego sold to just a few warehouses, rather multiple small warehouses in dozens of countries, theoretically it would be practical to lower the price.

[brickzone]

So with 6.6% consumer price deflation here in Ireland today (NYT link), when can we expect to see the new cheaper Lego prices on S@H? (i.e. the same as already in Irish toy shops, and in most other Eurozone countries)

Edited November 17, 2009 by brickzone