Aussie sales! Share the news of LOCAL sales!

[TheDarkness]

Well it seems anything licensed now costs two arms and a leg. Even waiting for a decent sale doesn't make it worth it. Barnes and Noble will certainly be busy.

[distortme]

Wonder how Lego Aust would respond to a questioning of price comparison?

We've got some store owners on here haven't we? Any thoughts at the retail end?

Brickset are saying US139 vs our 249 for the Falcon. Insane!

[Cadder]

Any completists looking for the other Cars2 sets, Helensvale Target now have the 8638 Spy Jet Escape and Kmart have the 8639 Big Bentley Bustout (with the London clock, Queen, etc).

Prices were from recollection (Don't quote me on these).. $89 and $119 respectively.

[greenpaw]

Wonder how Lego Aust would respond to a questioning of price comparison?

We've got some store owners on here haven't we? Any thoughts at the retail end?

Brickset are saying US139 vs our 249 for the Falcon. Insane!

I would love to hear the official line on this.

I love Lego and want other parents to love Lego but most simply say it is too expensive, then go and buy something cheaper or go overseas.

Local retailers must feel the pain here, especially those dedicated to supporting Lego and/or only selling Lego and nothing else.

For me the last 10 or so sets I have bought have been from overseas (US, Korea, etc).

The trouble is if I was paying US retail or even a little above I would be happy to buy locally as I recognize how tight a bind local retailers are in.

Anyway rant over.

Outer Rim, local Brisbane retailer, are having a sale http://www.outerrimtradingco.com.au/ with 25% off some sets including all the POTC sets.

Not sure if it has been mentioned here yet.

Cheers

Inger

[distortme]

I would love to hear the official line on this.

I love Lego and want other parents to love Lego but most simply say it is too expensive, then go and buy something cheaper or go overseas.

Local retailers must feel the pain here, especially those dedicated to supporting Lego and/or only selling Lego and nothing else.

For me the last 10 or so sets I have bought have been from overseas (US, Korea, etc).

The trouble is if I was paying US retail or even a little above I would be happy to buy locally as I recognize how tight a bind local retailers are in.

Anyway rant over.

Outer Rim, local Brisbane retailer, are having a sale http://www.outerrimtradingco.com.au/ with 25% off some sets including all the POTC sets.

Not sure if it has been mentioned here yet.

Cheers

Inger

Exactly my sentiments! I'll support local until the cows come home - even 50% over the US retail and I might grab some or wait for a 20% sale. But even with that inevitable Myer sale I can't see my money going anywhere but overseas.

Think about it - I can get the Millenium Falcon delivered from B&N for less than $150AU. When is a sale going to drop $100 off that set?

I'm really keen for the official stance on it.

[TheDarkness]

Exactly my sentiments! I'll support local until the cows come home - even 50% over the US retail and I might grab some or wait for a 20% sale. But even with that inevitable Myer sale I can't see my money going anywhere but overseas.

Think about it - I can get the Millenium Falcon delivered from B&N for less than $150AU. When is a sale going to drop $100 off that set?

I'm really keen for the official stance on it.

It certainly doesn't encourage you to buy here. If the retailers have a good sale then I will pick something up, but more of my purchases are made internationally or on eBay. If the rrp was dropped by say 25% then I'm sure more sales would stay in Australia. S@H certainly doesn't give the great discounts they once did when getting rid of stock

[peterab]

I would love to hear the official line on this.

TLG rarely comment on this, but in the past they have said the RRP is set with consideration of the costs of a range of items in each region. They also have stressed that they view LEGO sets as a luxury item and price them accordingly. A few years ago at the beginning of the US financial crises they indicated that because they considered their future growth depended on the US market, that they would hold prices there artificially lower. I think there is a thread on pricing in the ambassadors forum that has a link to this.

I've had discussions with one of the LEGO designers (I was ranting about Aussie prices :-) and he assures me the wholesale cost of sets to retailers is the same in almost all regions of the world, and the RRP is negotiated with the major local retailers in each region. The only places where the wholesale prices differ is where TLG are trying to grow the market.

These two bits of information suggest a couple of things;

It's probably not likely we will get equivalent pricing to the US unless the US prices get raised.

Our local retailers are at least partly to blame if our prices don't compare to other regions of the world.

If you can manage to get sets from overseas cheaper that's probably worthwhile. If this is just a trend amongst the AFOL community it won't make much difference, but if the wider community start doing it retailers will need to lower their prices to compete. Perhaps the local retailers have noticed that people only buy stuff on sale, so they have negotiated for higher RRP so their margins don't suffer when most of the stock gets sold at 20% off. That could work for them unless the 20% price is also unattractive.

Edited June 1, 2011 by peterab

[Outer Rim Trading Co.]

Someone PLEASE tell me that the $100 for the Hillside House is a TRU markup and not actual RRP.

No way is that set worth $100.

Then again, its $70US (which isn't exactly good value either) so $100 AU is not that bad compared to the 100% markup we get on things like POTC.

$99.99 is the RRP for Hillside House. I think this is a fair price for this set. Of course, I wont be selling it for that much though...

Wonder how Lego Aust would respond to a questioning of price comparison?

We've got some store owners on here haven't we? Any thoughts at the retail end?

Brickset are saying US139 vs our 249 for the Falcon. Insane!

As an online LEGO retailer I asked the question about pricing when the whole PotC vs US and B&N pricing issue was raised a few weeks back. Here is what I was told. Prices for LEGO are set at least 6 months or more before the release of the product. While we are receiving the June releases now, they are already working on their prices for first half and even second half 2012 releases, and these prices are then fixed. Also Australian prices are not based on US prices, but on the location of LEGO's head office: Denmark. For example, let's look at 4195 Queen Anne's Revenge. RRP AUS$199 at S@H. Flip your location to Denmark and the RRP is DKK999. Do a quick conversion and this works out to be AUS$180. Factor in shipping containers and more containers of stock from Denmark to Australia and that's a fair price comparison. If you look at other territories: Czech Republic converts to AUS$180, Euro currency countries converts to $187.90. Of course, flip your location to the US and it's only US$119.99.

The question us Aussies shouldn't be asking is why are Australian prices so expensive. What we should be asking is why are US prices so cheap?

Finally, as a LEGO retailer it does concern me to see how easy it is for my potential customers to purchase LEGO at a cheaper price overseas than I can buy it for sometimes, and I may be biased, but I'm a firm believer in keeping your LEGO dollars in Australia. Support the independant resellers who sell LEGO because they love it too, not because a book store is looking to make a profit from selling yet another category.

Edited June 1, 2011 by Outer Rim Trading Co.

[lightningtiger]

Distance is our problem in connection with what price we pay, the US has a Lego factory in Mexico does it not and is a bigger market place too and we plus New Zealand are some way off Europe and the USA.

But in saying that the markup on Lego might only be 30 to 40% on cost price so to discount something else has to give. If enough of us shout to the ACCC maybe then Lego may bring the retail price down.....but I will not hold my breath !

[Darth Draks]

If enought of us complain about the price difference, Lego will do something about it alright. They will start clamping down on the US stores shipping here.....

[Clone-Trooper]

$99.99 is the RRP for Hillside House. I think this is a fair price for this set. Of course, I wont be selling it for that much though...

As an online LEGO retailer I asked the question about pricing when the whole PotC vs US and B&N pricing issue was raised a few weeks back. Here is what I was told. Prices for LEGO are set at least 6 months or more before the release of the product. While we are receiving the June releases now, they are already working on their prices for first half and even second half 2012 releases, and these prices are then fixed. Also Australian prices are not based on US prices, but on the location of LEGO's head office: Denmark. For example, let's look at 4195 Queen Anne's Revenge. RRP AUS$199 at S@H. Flip your location to Denmark and the RRP is DKK999. Do a quick conversion and this works out to be AUS$180. Factor in shipping containers and more containers of stock from Denmark to Australia and that's a fair price comparison. If you look at other territories: Czech Republic converts to AUS$180, Euro currency countries converts to $187.90. Of course, flip your location to the US and it's only US$119.99.

The question us Aussies shouldn't be asking is why are Australian prices so expensive. What we should be asking is why are US prices so cheap?

Finally, as a LEGO retailer it does concern me to see how easy it is for my potential customers to purchase LEGO at a cheaper price overseas than I can buy it for sometimes, and I may be biased, but I'm a firm believer in keeping your LEGO dollars in Australia. Support the independant resellers who sell LEGO because they love it too, not because a book store is looking to make a profit from selling yet another category.

The pricing layout based on Lego's head office in Denmark does makes sense, totally over priced but makes sense (especially with the pieces count to price ratio).

So the question must be asked WHY is........ the US getting the special treatment on lower prices.....? Here's why........

1. 250+ million people (lots of customers to tap into and make money from)

2. Extremely competitive market (Lego has to have lower prices so they continue to sell in proportion to other Toys markup's in the US)

3. Recession (Their economy/government is edging towards bankruptcy, $800 trillion in debt, no way to pay it back and it just continues to grow... soon they'll totally crumble)

So all in all, Lego have to lower their prices in the USA just so they're competitive and continue selling the USA, plus it makes The Lego Groups books look bigger.

For me..... the answer is simple, as long as the economy is so bad in the USA, our Australian dollar will continue to rise and be high.

For those that have internet access, or hear it through friends/family that Lego can be purchased from the US at hugely discounted prices will soon begin to jump

ship from Australian retailers and go overseas.

In this day and age (including Australia's slow economic spending days) everyone will be watching their spending, including general mum and dads/house holds.

Shame I won't be spending my money in Australian stores, but I will have twice as much Lego for the same RRP price tag.

Enough of my rant,

"Keep on Saving"

[greenpaw]

Ah well thanks for all the new insights everyone, this issue has been on my mind a bit lately so this forum provided me with a little vent

I'm not sure overall if it will keep most of my Lego purchases in Australia, though when and if I do shop local I support the smaller store rather than the multi-nationals (nice to see you here Outer Rim and thanks for your input).

I would however love to see a slight reduction in the prices of Australian Lego considering we presently live in a worldwide market, no matter how dysfunctional that may be on a number of levels.

If I can purchase it cheaper overseas, even while paying $50+ for shipping then there really has to be an issue there worth looking into for local Lego distributors and retailers-it doesn't serve either of them well.

Cheers

Inger

[TheDarkness]

If I can purchase it cheaper overseas, even while paying $50+ for shipping then there really has to be an issue there worth looking into for local Lego distributors and retailers-it doesn't serve either of them well.

And that's the thing, you can pay up to $70 for freight and still get an item here that is a minimum 10% cheaper than what the Aussie RRP is.

Outer Rim, I appreciate your insight in the discussion. It's sad that Lego simply set those prices with no flexibility, but I guess in their eyes too we still purchase the Lego, whether it is an international purchase ir not

[jonwil]

Can anyone tell me if there are any rules regarding what price stores are required to sell at or any limits on what a store can set as its regular retail price?

Also, in regards to the discussion of online vs retail, its mostly AFOLs and savvy shoppers who are buying online. Most parents and normal buyers tend to either buy at retail and pay the cost or (more likely) go to another isle and buy a cheaper toy (not caring that the cheaper toy is of inferior quality).

Most parents dont know about options like Bricklink or Barnes & Noble.

[peterab]

The pricing layout based on Lego's head office in Denmark does makes sense, totally over priced but makes sense (especially with the pieces count to price ratio).

So the question must be asked WHY is........ the US getting the special treatment on lower prices.....? Here's why........

1. 250+ million people (lots of customers to tap into and make money from)

2. Extremely competitive market (Lego has to have lower prices so they continue to sell in proportion to other Toys markup's in the US)

3. Recession (Their economy/government is edging towards bankruptcy, $800 trillion in debt, no way to pay it back and it just continues to grow... soon they'll totally crumble)

I'd add to that that TLG see the US as an extremely important market for future growth. Their biggest market is Germany, but it is in their opinion saturated. If I remember the figures correctly they were about 12% of the toy market in Germany. The US is a bigger market and TLG has a much smaller slice. They don't have the same strong tradition there as in Germany, where practically every child has some LEGO sets, and has had since the late sixties. The US is currently only third or fourth largest market each year, by keeping the prices low enough to build the brand support, TLG probably hopes to develop the same sort of brand recognition and market share in the US as Germany.

Distance is our problem in connection with what price we pay, the US has a Lego factory in Mexico does it not and is a bigger market place too and we plus New Zealand are some way off Europe and the USA.

Distance doesn't account for all the difference, especially since the Mexico factory doesn't make the full range of parts, so stuff gets shipped in all directions around the globe between China, the Czech Republic and the other factories. I can buy at US retail prices and ship here cheaper than buy domestically, despite the fact that bulk shipping for TLG would be much cheaper.

Can anyone tell me if there are any rules regarding what price stores are required to sell at or any limits on what a store can set as its regular retail price?

RRP is the manufacturers recommendation, though I've seen different stores claiming different RRPs for the same product so I'm a bit confused by that. It acts as a guide to stores to let them know vaguely what they should initially set their price at to avoid a price cutting war which hurts retailers and the manufacturer.

There are very strong rules against requiring a store to sell at a particular price, ie the manufacturer is not allowed to discourage discounting, or different retailers are not allowed to fix prices together. The only real limit is the wholesale price that is charged, and retailers can obviously check each others prices.

Edited June 2, 2011 by peterab

[alepto]

cutting through the bi-monthly rants about aussie price rip-off:)

S@H now has the marina stuff for us.... And some specials around ninja-go ( I would recommend people sign up for the VIP newsletter - you find out stuff fairly early regarding S@H)

And yes the price on the wharf set is 'orrible, the smaller sets are not too bad.

[Hewman]

cutting through the bi-monthly rants about aussie price rip-off:)

S@H now has the marina stuff for us.... And some specials around ninja-go ( I would recommend people sign up for the VIP newsletter - you find out stuff fairly early regarding S@H)

And yes the price on the wharf set is 'orrible, the smaller sets are not too bad.

Also the Kingdoms mill is up at the expected price of $120, which isn't too bad if there's a myer 20% and another 10% off sale in a few weeks.

[lightningtiger]

Ah, but 'Hewman' Kingdom's will be a short term exclusive to Toyworld like I posted a few days ago.

Now for those in Queensland, Mr Toys & Games have a series four collectables deal going - for every 20 bucks you spend on ANY toy at their stores you can buy a series four minifig for 2 bucks.

Keep on shopping !

[Outer Rim Trading Co.]

Ah, but 'Hewman' Kingdom's will be a short term exclusive to Toyworld like I posted a few days ago.

Now for those in Queensland, Mr Toys & Games have a series four collectables deal going - for every 20 bucks you spend on ANY toy at their stores you can buy a series four minifig for 2 bucks.

Keep on shopping !

If you are referring to 7189 Mill Village Raid, I'll be stocking it in September so I'm not sure what kind of exclusive Toyworld will have on it...

[Hewman]

Ah, but 'Hewman' Kingdom's will be a short term exclusive to Toyworld like I posted a few days ago.

Now for those in Queensland, Mr Toys & Games have a series four collectables deal going - for every 20 bucks you spend on ANY toy at their stores you can buy a series four minifig for 2 bucks.

Keep on shopping !

I believe you said Toyworld will be having a Kingdoms month but nothing about 'exclusivity' of the sets (I'm looking for the right emoticon to show I'm just stirring). Although if I go back and check and discover I'm wrong I reserve the right to edit my posts to remove any evidence of this! Given Outer rim's post though it sounds like Toyworld may be getting this as a short term exclusive, which there is precedent for at other stores.

[Mister Phes]

As an online LEGO retailer I asked the question about pricing when the whole PotC vs US and B&N pricing issue was raised a few weeks back. Here is what I was told. Prices for LEGO are set at least 6 months or more before the release of the product

Thank you for taking the time to educate us. It seems many Australians are frustated by the vast price difference between Australia and other regions so your information helps to provide clarity on the situation.

(I also notice the UK enjoys a noticeable price difference on the Queen Anne's Revenge - 102.99 GBP = 157.993 AUD)

[Artanis I]

Ah, but 'Hewman' Kingdom's will be a short term exclusive to Toyworld like I posted a few days ago.

Now for those in Queensland, Mr Toys & Games have a series four collectables deal going - for every 20 bucks you spend on ANY toy at their stores you can buy a series four minifig for 2 bucks.

Keep on shopping !

If you are referring to 7189 Mill Village Raid, I'll be stocking it in September so I'm not sure what kind of exclusive Toyworld will have on it...

I believe you said Toyworld will be having a Kingdoms month but nothing about 'exclusivity' of the sets (I'm looking for the right emoticon to show I'm just stirring). Although if I go back and check and discover I'm wrong I reserve the right to edit my posts to remove any evidence of this! Given Outer rim's post though it sounds like Toyworld may be getting this as a short term exclusive, which there is precedent for at other stores.

Probably as with last year, Toyworld will have Kingdoms for a month or more before anyone else has it... I believe it was in lieu of them not having an exclusive set?

[Hewman]

Myer stock take sale starting next Wednesday is having 25% off toys. That's probably not very exciting to most of us, unless they get some new stock in. Actually, I just remembered there was one imperial flagship in the Adelaide store which on sale would set you back about $210 if it's still there.

[dotmike]

Myer stock take sale starting next Wednesday is having 25% off toys. That's probably not very exciting to most of us, unless they get some new stock in.

Forgive me if this is common knowledge, but is the new 7965 Millennium Falcon an exclusive to Target? I saw it in a Target store today at $249 (Miranda Sydney if you are desperate for one, they had plenty). However, it was in no other department stores in the shopping mall, which includes Myer, David Jones, Big W, and Toys R Us.

Was Target just lucky to get it first, or do they have either a limited time exclusive or full exclusive on it?

The main reason I ask is that if Myer has this 25% sale coming up (and presumably later on a 20% + 10% Myer One variant), it could just pull the set into buy-here-rather-than-import territory, whereas Target doesn't often go beyond its 20% thing. For an expensive set, every 5% makes a difference!

[Brickus]

Tonight I saw ALL the new Star Wars sets in their shipping boxes, at my local Big W.

Edited June 2, 2011 by Brickus