10211 Grand Emporium price gone mad

[The Green Brick Giant]

I think we should have a sub forum just to complain about how bad LEGO's prices are.

[Svelte]

If you read my post, you'd see that my issue is with price inconsistencies. Two items, Fire Brigade and Grand Emporium, which both cost $149.99 in the US, cost £99 and £140 respectively in the UK. Can you explain that?

It's funny that noone in the UK seems to remember that they have had significantly better prices than the rest of the world (not including the US, of course) on most of the big-ticket items (and many smaller ones) for several years, probably part of LEGO's greater push to dominate the UK market (along with stores, promos, news stories etc). Many members from Europe and Ireland have posted here before about how it has been significantly cheaper for them to purchase a set in the UK and buy a set there rather than in their own country.

We can only guess at LEGO's pricing system but it would seem to me that for whatever reason, they decided from the release date of the 10210 Flagship to bump up the standard price for Exclusives in the UK from GBP100 to GBP140.

Yes, a 40% increase is a pretty blunt shock to the system but I imagine this is the price point they'll be looking to stick to for the next few years at least.

As has said before, LEGO's pricing systems are a mystery and depends on many factors including, I supect, their own internal self-confusion Last year the prices of the Fire Brigade jumped in price $AUD30 from the Green Grocer upon release, and then another $AUD20 in January; the Emporium has gone back to the previous price of $AUD250. Our prices are some of the steepest in the world, factoring in the currently very good exchange rate.

Inspired by the Walrus Keeper, I suggest outraged UK members console themselves by purchasing a bargain basement UCS 10179 Millennium Falcon instead. At GBP342.49 this ends up at about $AUD572, which is a good $AUD400 off our retail price of $AUD980 - enough to buy a Grand Emporium and an Emerald Night too!

[Princess Muttonchops]

One trend that the Walrus and I have noticed with Shop@Home prices is that sets that are one-store exclusives (noticably Myer/David Jones) always seem to mysteriously to go up shortly before the set is released in the respective store chain, where they appear on sale. I don't really mind, except that I sometimes feel like a dog in a Pavlov experiment, being conditioned to salivate when likely-looking Myers/David Jones exclusives appear on Shop@Home. Yes, I've been well trained...

[Whittleberry]

I sometimes feel like a dog in a Pavlov experiment, being conditioned to salivate when likely-looking Myers/David Jones exclusives appear on Shop@Home. Yes, I've been well trained...

Hahaha, that's how I felt when I found out the Emporium's only $250.

[ZeeK]

Many thanks to Mikael for attracting additional attention to this issue!

As someone may know there are parts of the world, where no S@H/LEGO stores exist. Russia is one of them.

So as long as you're anxious about the price differences there's a certain amount of speculators or resellers who sell GG or FB for 10 000 roubles (1 USD = 30 roubles) - that is more than 300 USD per set!

Moreover, the prices we have for "regular range" are about as high (or higher) than most expensive EU countries have.

Okay (not ok-ey), it looks like Russian LEGO fans are as rich as Sweden ones :) - we're able to afford US' MSPR multiplied by 2. The sad fact is - these money do not go to LEGO. Those who are not buying LEGO abroad had to pay to the "middlemen".

[Follows Closely]

USA! USA! USA!

No, but seriously, you European guys have it way better in terms of Bricklink. All the big, cheap sellers seem to be in Europe. I ordered close to $4000 on Bricklink last month and only $60 was to an American shop.

Are you married?

[Matt Dawson]

USA! USA! USA!

No, but seriously, you European guys have it way better in terms of Bricklink. All the big, cheap sellers seem to be in Europe. I ordered close to $4000 on Bricklink last month and only $60 was to an American shop.

Are you married?

I had to laugh at this point. One wonders what he is doing - constructing a James May Look-a-like house?

And about Bricklink. The cheapest shops are actually in the US for most of my parts. I order parts from the UK/europe when I need specific pieces or rarer ones - such as 1x2 brick shutter holders.

Feidbeka is a excellent store though - 9V train wheelsets @ $2?

Edited March 16, 2010 by Matt Dawson

[Enilder]

USA! USA! USA!

No, but seriously, you European guys have it way better in terms of Bricklink. All the big, cheap sellers seem to be in Europe. I ordered close to $4000 on Bricklink last month and only $60 was to an American shop.

...what you building?

[CP5670]

I find that the American stores are generally cheaper on basic, common pieces, especially in large quantities, while the European stores have better selections of rare, discontinued parts and are often the only places to get them in new condition. Although I don't spend anywhere close to that amount on BL.

[President of Brick Town]

Lucky I'm not the only one.

I've never been able to see a 10211 in Indonesia so I bought one in the US.

But other Indonesia Lego prices were 50-150% higher than the US prices.

[Pingles]

I do wonder how much of this is due to serious tarrifs and taxes on imported goods.

Tarrifs make sense to protect a country from cheap imports but they are often times outdated and abused.

[fyrmedhatt]

I do wonder how much of this is due to serious tarrifs and taxes on imported goods.

Tarrifs make sense to protect a country from cheap imports but they are often times outdated and abused.

Very little, if you consider that most Lego is produced in either Denmark or other EU countries, and thus there would be no tariffs to speak about when exporting to other EU countries. The biggest part of the reason for Lego's low prices in the US is that the US is a low price market where Lego still sees a lot of potential for their products. Germany is currently the number one market for Lego, with less that a fourth of the population of the US. That means that the average German family spends four times as much on Lego as an American family, and the situation is the same for many, if not most Western European countries.

In order to create the same market in the US, they've been selling super cheap Lego in order to hook people on their product, before they will later increase their profit margin. The US is also generally a cheap market to sell in, with low labor cost and a massive economies of scale benefit, not to mention lower tax rates, where sales tax is usually 12% or below in many states, as opposed to European countries where it is incorporated in the prices and often goes up to 25%.

[MAH4546]

Very little, if you consider that most Lego is produced in either Denmark or other EU countries, and thus there would be no tariffs to speak about when exporting to other EU countries. The biggest part of the reason for Lego's low prices in the US is that the US is a low price market where Lego still sees a lot of potential for their products. Germany is currently the number one market for Lego, with less that a fourth of the population of the US. That means that the average German family spends four times as much on Lego as an American family, and the situation is the same for many, if not most Western European countries.

In order to create the same market in the US, they've been selling super cheap Lego in order to hook people on their product, before they will later increase their profit margin. The US is also generally a cheap market to sell in, with low labor cost and a massive economies of scale benefit, not to mention lower tax rates, where sales tax is usually 12% or below in many states, as opposed to European countries where it is incorporated in the prices and often goes up to 25%.

Nowhere is the sales tax 12%. There is 0% national sales tax. Most states have a state sales tax, but that is never higher than 9.6% and rarely above 5%. Then some cities/counties add a sales tax, too. The highest total (state+county+city) sales tax is 11.5% in a small number of cities in Illinois. In only two other places does it exceed 10%.

Everything consumer goods-related is cheaper in America - from a Matchbox toy car to a LEGO set to an LCD TV to a BMW. This isnt a LEGO-only thing and will likely never change. And I wouldn't buy into that "market creation" PR garbage that LEGO might spew. LEGO is the third largest toy seller in the U.S. after Mattel and Hasbro. It has no problem selling product. The reality is that America has awesome economies of scale, a lot less regulation than elsewhere, low taxes and cheap transportation costs that make distributing and selling goods incredibly affordable. It's cheaper to hire workers, cheaper to advertise product, cheaper to transport product, etc., etc., and that cost savings is passed onto the consumer.

I also find dubious any claim that Germany is the largest market for LEGO. It certainly has been in the past, but I doubt that is still the case, at least not in volume. I couldn't find anything about this in the most recent annual report.

Edited November 14, 2011 by MAH4546

[natelite]

it's not direct sales tax. sometimes countries also charge import tax or other form of taxes on foreign made goods in order to favor domestic producers. most countries do this. if not taxes, it would be rebates for domestic and surcharge for foreign.

other than that, perhaps union rules, and other cost of business makes the shipping charges more expensive (like dock workers, etc).

because US is a free market, literally, there is very little extra charges besides sales tax. only very restrictive list of goods and products are taxed, like steel bars for e.g. most are free. which is why you dont get charged taxes for importing lego (which is classed as a toy) from elsewhere.

there is a import and custom charge for almost every other country on lego or other toys. just ask the BL resellers who ship internationally.