Lego price variation on countries

LegoGBC, a youtuber, is having an interesting discussion with me on youtube. We are talking about the Lego price variation on the different countries of the world.

Dollar looks strong, at least at The Lego Group eyes

Just to have an example, right now, the Lego Technic 9398 4×4 Crawler has a price of 199€ on the oficial shop of Spain, while in the U.S shop it´s being sold at 199$… That´s a huge difference of 20 euros on the final price…

So I asked myself: Why is this happening? We are at the same world, this shouldn´t happen. A quick google search revealed me the answer.

Here is Mad Nipper, Lego Corporate Manager:

“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.”

That will mean the next. American prices are lower, as they have competitors (Other toy manufacturers?). European and Asian market have higher prices due to the not-profitability of the American one.

So we are paying the losses of the lego company in the U.S.

Lego CEO: 'US toy market worries us'

Jorgen Vig Knudstorp, maybe they guy that is increasing the prices

What can we do? Nothing but complain to Lego. However, Lego can do something for US (Us, the consumers, and U.S. the country :P). Why don´t they stop selling on the U.S. market as it is repporting losses for them?

A simple class of mathematics for Lego

I know this sound agressive and strange to american buyers, but the fact is that European (Specially Spanish) and Asian countries are quite sick of this.

Going back to the starting point, LegoGBC is from Israel, where the Lego Technic 8043 can cost up to 430$. Not talking about higher price sets… (Mindstorms e.g.)

Ilanit Toys Ltd. (From now IT) is the retailer of Lego for Israel. As Toy´S´Rus claims, it is increasing the retail price… Here is the article.

Happy face for an evil company… Logo of Ilanit Toys Ltd.

Israel.importers are charging margins of hundreds of percent, resulting in an unreasonable increase in retail prices”

That is the reason of the high prices. Apparently, this Lego has nothing to do with this (As Eran, LegoGBC, told me), even though they have no reason… They can just change the importer, and all will be solved.

But it is not that easy… IT is the only toy company on Israelthat imports Lego, so they have no competitors. They can set the price they want. And Toys´R´Us has nothing to do there, as the law court of Israel don´t support it…

Just to sum up, the problems with the Lego price market over the world can be solved fast and efficiently, but someone at Lego Billund Denmark doesn´t want to change it.

Next time, I will talk about a real solution on the U.S Lego market. We all know Lego won´t close it, and it is not fair for the U.S. consumers, who want lego sets on their shops.

Have you any real solution?

Could next lego sets cost the same all over the world? 2 of this on U.S. is 1 on IL

I hope you liked the article. I’d really apreciate your comments on this topic ;).

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7 Comments (+add yours?)

  1. LegoGBC
    Apr 12, 2013 @ 10:37:19

    Great article. Just a few fixes: the 8043 costs in Israel much more than 300$ (430$ in average). But if you order it from BrickLink,it will be around 300$..
    Meaning,at the price you can get a single flagship set in Israel,you can get TWO(!) in the US!

    2) Ilanit is not the only toy company in Israel,there are dozens of them. It’s just the only Lego importer to Israel,making these extreamly high prices.

    Thank you again,for this great article!

    Reply

    • yiharuablog
      Apr 12, 2013 @ 14:56:56

      You are welcomed. ;). I just want to fight against the injustice of the price average of lego sets all around the world…

      Thanks for the fixes. I will fix it ;).

      Reply

  2. illnino
    Apr 13, 2013 @ 08:46:24

    In China, the price is even much more higher. Say 9492, it is 54.99 USD originally. However, we have to pay for 429CNY equivalent to 69 USD, according to latest exchange rate I found in Google.

    In China, we have only one company that imports LEGO and it mainly imports dulpo, creator series. We have far less choices in the market.

    In the end, we normally buy LEGOs in a website – http://www.taobao.com. It is like ebay. Most of the goods are smuggled from Hongkong. And still the price is much higher than the one in US amazon.

    Reply

    • yiharuablog
      Apr 13, 2013 @ 09:19:10

      There is a hige injustice on the world.

      First of all, thanks for commenting.

      I must say that your market is as competitive as american one, so the prices should be similar. The Lego Group is even saying that Asia is gonna have a factory.

      But the fact is that you have high price ratios… Difference is huge, as in other countries.

      I hope this little article and your comments would help lego to change a bit…

      P.E.: I have found another country with competitive prices. Germany has lower prices. (Not as low as America). It seems that they have much more sellings there… And lego lower the price…

      Reply

  3. Eric at A Lego a Day
    Apr 15, 2013 @ 17:05:01

    While I agree LEGO is far cheaper in the US comparatively to Europe and Australia, I highly doubt it is selling for a loss in our market. I think it is just being sold for far less profit than in other regions.

    Reply

  4. Trackback: Lego Economics, part 2 |

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Nortebrick 2013March 23rd, 2012
The big day is here.
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