Price of LEGO sets in Australia

[Sam]

I've noticed that increasingly there is a huge price difference between sets sold here and in the US, even when the sets are identical.

For example, this set: http://shop.lego.com/en-US/Spider-Man-s-Doc-Ock-Ambush-6873

is $29.99 if your region is US.

But as soon as you change your region to Australia, it becomes $69.99!

I asked LEGO about the price difference once before, and here is the response:

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due to differences in economics around the world, prices are determined by the demographics of specific countries. There are also differences in taxes, exchange rates and market value of our products. Also, the laws of a country can affect the way prices are stated. For instance, prices in the US are shown without sales taxes while in Europe the prices stated to the consumer must include VAT.
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[kaiden]

basically they are saying regional pricing is in effect and they don't care.

[griffin]

Lego, Mattel & Hasbro are foreign-owned toy companies who all over-charge here because they have a legal monopoly (no one else is allowed to import their products without authorisation).
Until parallel importing includes toys (they mentioned "laws of a country" in their reply to you), they can charge whatever they want out of greed... and blame it on factors that don't actually affect the prices here (tax rates are similar, exchange rate is in our favour, etc).

[Verno]

So how do we change it? Do we march on Canberra? Demand legislation to be changed/created?

[kaiden]

So how do we change it? Do we march on Canberra? Demand legislation to be changed/created?

convince all those naive parents and relatives to do so, I'm pretty sure most don't realise how badly is it they get ripped off.

[Sam]

Here is the more complete response:

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we're truly sorry to hear you are upset about the cost of the products and shipping. Our shipping and handling rates depend on the amount of LEGO you want to order and the type of shipping method you prefer.
http://shop.lego.com/TermsPolicies/shipping_and_handling.asp

Due to differences in economics around the world, prices are determined by the demographics of specific countries. There are also differences in taxes, exchange rates and market value of our products. Also, the laws of a country can affect the way prices are stated. For instance, prices in the US are shown without sales taxes while in Europe the prices stated to the consumer must include VAT.

For orders in Australia and New Zealand, the product actually ships to the United Kingdom from our distribution center in (Belgium, Denmark) Europe, where the packages are then forwarded on to our consumers in Australia and New Zealand.

There is a distribution centre in America. Unfortunately, we do not actually have a distribution center in Australia, but we do deliver to the country, which is why the price for delivery is a bit higher than one might like.

Again, we are truly sorry to hear your disappointment with the price of the shipping. I will absolutely pass your comments along to the team in charge of this area for consideration.
---

I am not convinced that shipping is what contributes to the price being more than doubled of the US price, and I have written as such in my reply to LEGO. Even with the sales tax added in the US, I don't believe it would come to 69.99USD.

[griffin]

So how do we change it? Do we march on Canberra? Demand legislation to be changed/created?

Changing legislation is the way to do it, like we had with books and CDs about 15 years ago. The official distributors would have to drop their prices to compete against smaller operators who could source product from America or Asia, leaving us (the consumers) better off with cheaper prices, and more Australians employed from the greater Domestic turnover (because people would be less likely to import if it is cheaper here).
This "exclusive rights" legal protection in this country, was probably drawn up by politicians protecting their big business friends/donors... as it certainly doesn't do anything beneficial for us consumers/voters.
Petitioning Federal Politicians, or becoming one, would be the only way to change this.

[Verno]

Does the Labor Party have an MP that's like 21 or something? He's our way in!

[UltraMarginal]

This is the same for most retail products in australia, be it white goods, electronics or toys. There is currently an enquiry being conducted by the government into the price disparity with electronic goods, ie downloadable music, games and other software. Apple, Steam, Microsoft, Adobe and many others all have not really said anything convincing yet, surprisingly:rolleyes:.

[Verno]

Wyatt Roy (http://www.wyattroy.com.au/)

Youngest MP ever apparently. If the Libs get up in the next election, we get this kid on our side and push through our legislation!

[Seraphim Prime]

Another issue affecting Lego at least is that the US is still considered an emerging market for the brand, and they are subsidising the cost of products in the US to encourage growth.

[Hursticon]

Wyatt Roy (http://www.wyattroy.com.au/)

Youngest MP ever apparently. If the Libs get up in the next election, we get this kid on our side and push through our legislation!

Youngest to have a Federal Seat in the House of Representatives, but have you seen/been to the electorate he represents (http://en.wikipedia.org/wiki/Bribie_Island)? :rolleyes::p
(Oddly enough, my Grandfather trained on its Beaches during WWII)


Another issue affecting Lego at least is that the US is still considered an emerging market for the brand, and they are subsidising the cost of products in the US to encourage growth.

Really? - Is Lego's corporate 'think-tank' that blinkered? :rolleyes:

[Verno]

Youngest to have a Federal Seat in the House of Representatives, but have you seen/been to the electorate he represents (http://en.wikipedia.org/wiki/Bribie_Island)? :rolleyes::p
(Oddly enough, my Grandfather trained on its Beaches during WWII)

It's not so much who he represents - it's more that he is a kid that grew up in the 90's and probably owned Lego himself. He can corrupt him and make him our pawn!

[Hursticon]

It's not so much who he represents - it's more that he is a kid that grew up in the 90's and probably owned Lego himself. He can corrupt him and make him our pawn!

Well, anything is worth a try. :D

[griffin]

Realistically, a single member of parliament isn't likely to have much say if they are part of a political party (idealistic politicians wanting to change the world, sign up to a major party to get in, only to end up having their hands tied by the party and its power-brokers). Even the leaders in the major parties are bound by party politics and the party president/power-brokers (or else they get replaced if they don't)... so unless you can convince the ones who decide on what the party supports or opposes, you'd need a "private member's bill" and the time (and money) to lobby a majority of MPs & Senators to get it passed.

Either that, or set up your own political party, get a majority of seats in the Lower and Upper houses, just to get yourself some cheaper toys... :p

We can have the "Transformers Party" to join the ranks of other "single-policy" parties (http://en.wikipedia.org/wiki/List_of_political_parties_in_Australia#Registered_ for_elections_with_the_AEC) like the Shooters Party, Sex Party, Disability Party, Fishing Party, HEMP Party, etc...

[Sam]

Maybe if the issue was put forward not as one only to do with cheaper LEGO and/or toys, but more equality price-wise for various kinds of products (toys, electronics, software, etc.) for Australians (essentially we are asking for a fair go), it would get more traction?


Realistically, a single member of parliament isn't likely to have much say if they are part of a political party (idealistic politicians wanting to change the world, sign up to a major party to get in, only to end up having their hands tied by the party and its power-brokers). Even the leaders in the major parties are bound by party politics and the party president/power-brokers (or else they get replaced if they don't)...

That's so true, and herein lies the "trade-off" of living in a democracy. In a benevolent despotic society *cough oxymoron cough* the legislation would be able to be changed much more quickly (but often for the worse).

In all this, I will continue to take a "glass half full" mentality - buy online! :)

[griffin]

Maybe if the issue was put forward not as one only to do with cheaper LEGO and/or toys, but more equality price-wise for various kinds of products (toys, electronics, software, etc.) for Australians (essentially we are asking for a fair go), it would get more traction?

Absolutely. To get something we want (a minority group or interest), we need to give them a reason to get something they want (money and/or votes). Making the issue one to do with a range of products, which are all being bought online in increasing numbers, would make it more interesting to the general public, and businesses.

[jaydisc]

We just need to complain more, louder and more often. Complain on Twitter, and copy @Lego_Group in your tweet. Put complaining wall posts on Lego's Facebook page. I was harassing their head of PR, but he recently resigned and moved to a different company. Search Twitter for bios with the word Lego in it, and copy them as well. Regular remind them via feedback and customer service surveys (you are asked to complete one at the end of each instruction manual) that you find the price discrepancy OFFENSIVE.

They gave me the same crap about distribution centre. This was my response:


Hi Zsolt,

I'm not sure how you're interpreting my complaint, but it doesn't seem like you understand it or the math behind it. I am not complaining about the shipping prices. I am complaining about the product prices. I am complaining about the product prices at shop.lego.com AS WELL AS the retail prices for the products in our local Australian retail stores like Kmart, Big W, etc. It is cheaper for me to order Lego from the US website, pay for shipping to a USA address, and then pay for shipping from that USA address to Australia, AND STILL SAVE OVER 200 DOLLARS with an item such as the Lego Super Star Destroyer.

Are you implying that it costs Lego $200 MORE to ship a product to me in Australia?

Let me do the math again:

Lego 10221 Super Star Destroyer is USD 319. Now, USD 319 converts to AUD 315. Now, let's play it safe and add a 3% bank currency conversion rate on top of that, raising it, and rounding it up to AUD 325. Now, the US price does not include tax, so we will add Australian GST of 10% on top, bringing us to AUD 358. Now that same item can be bought from the Australian shop.lego.com and shipped to Australia (also at no charge) for AUD 560.

So you should be able to clearly see that my issue IS NOT the shipping price. It's the fact that you are gouging Australians.

Let me provide you (or your manager / lawyers) with some related reading material:

1. Australian Price Gouging Inquiry Targets Apple, Microsoft And Others (http://techcrunch.com/2012/04/30/australian-price-gouging-inquiry-targets-apple-microsoft-and-others/) (April 30)
The Australian Consumer watchdog has started hauling companies that conduct this kind of global gouging in to account for their actions. I will be writing them to recommend that you be added to their list, as well as rallying other local local fans of Lego to do the same.

2. Gerry Harvey laments retail woes as profits dip (http://www.abc.net.au/news/2012-02-29/harvey-norman-profits-slide/3859730) (Mar 12)
There is currently a large outcry in this country from retailers that shoppers are abandoning them in favor of online, overseas options. THIS IS BECAUSE OF THE PRICES THAT COMPANIES LIKE YOURS ARE GOUGING US WITH! Now, in this global market, why would anybody, with the TINIEST bit of knowledge, buy from shop.lego.com's Australia shop or a local retailer instead of a US, or other foreign retailer that ships overseas?

Don't you ethically see a problem with this?

Don't you think you might make up the loss of revenue/profit from lower prices with more volume? I haven't bought Lego in Australia in years. However, I have bought THOUSANDS of dollars of Lego from overseas sellers for a FRACTION of those prices!

Sincerely disappointed


That was back in May.

Squeaky wheel gets oiled folks. Just stay on them, every chance you get. Writing letters will always be the most powerful method IMO. And don't waste your time with Parliament (again, IMO). They don't give a crap about how much nerds pay for their toys. We're not regarded as a well-orgnized voting block.

[Sam]

Jaydisc - I like your letter. It's inspiring reading material. :)

[Bidoofdude]

We just need to complain more, louder and more often. Complain on Twitter, and copy @Lego_Group in your tweet. Put complaining wall posts on Lego's Facebook page. I was harassing their head of PR, but he recently resigned and moved to a different company. Search Twitter for bios with the word Lego in it, and copy them as well. Regular remind them via feedback and customer service surveys (you are asked to complete one at the end of each instruction manual) that you find the price discrepancy OFFENSIVE.

They gave me the same crap about distribution centre. This was my response:



That was back in May.

Squeaky wheel gets oiled folks. Just stay on them, every chance you get. Writing letters will always be the most powerful method IMO. And don't waste your time with Parliament (again, IMO). They don't give a crap about how much nerds pay for their toys. We're not regarded as a well-orgnized voting block.

Did you get another back?

[jaydisc]

I don't think so. That was already the second volley.