I’m sure many LEGO fans across the world have wondered why the US has the lowest LEGO prices while countries in Europe and Asia have significantly higher prices, oftentimes twice that of the MSRP (Manufacturer’s Suggested Retail Price) for a LEGO set in the US. There are even countries where LEGO costs up to three or four times the prices in the US. Here is the answer from Mads Nipper of LEGO’s Corporate Management. 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.Tell all your friends!If you have been involved in the LEGO hobby for some time you are well aware of how important it is to have a LEGO shopping strategy. LEGO is not cheap, and both the LEGO Company as well as retailers are taking advantage of the popularity of the brand by keeping prices as high as they can. This is an unfortunate occurrence, especially in the current economy. Ultimately the strategy may backfire both for LEGO and retailers, but that is another topic, and whatever they do, we can still develop our own LEGO shopping strategies to get the best deals. One of the places people often shop for LEGO is Toys’R’Us. It is pretty much the only toy-shop chain left in the USA, and people naturally think of visiting them first when shopping for LEGO or other toys. One thing they are often not aware of however is how much Toys’R’Us jacks up prices on LEGO sets (and probably everything else too). A
$5-$10-$20 mark-up from regular retail price is very common. Worse is when Toys’R’Us advertises sales around holidays. You will see 40% Off and BOGO 50% (Buy-One-Get-One-50%-Off) sales on LEGO advertised on the Toys’R’Us website and at their retail stores. However that 40% or 50% off is NOT what you think it is! In fact you often end up worse then buying the same LEGO set at an Official LEGO Store, or some generic retailer like Wal-Mart. I will show you how Toys’R’Us is cooking the numbers and what you really end up with when you bite the hook on a Toys’R’Us LEGO sale. Eye-opening, isn’t it? The point is that if you want to get LEGO for the best prices, you really have to do your math. LEGO shopping could actually be quite fun if you take finding the best prices as a challenge. And it doesn’t have to be a long and tedious endeavor. Just have the latest LEGO Catalog or visit the Online LEGO Shop to check regular retail prices (I like the Catalog because I can take it with me to the store I’m planning to shop at). T
hen have a calculator handy to decode all the pricing voodoo retailers use to lure us into buying from them. 🙄 Again, the most notorious offender is Toys’R’Us. Other retailers like Wal-Mart, Target, K-Mart, Barnes & Noble and of course Official LEGO Stores almost always use the regular retail price, and when they have LEGO sales they to be decent, even excellent (like the 50% off regular retail price on some of the best LEGO sets at Wal-Mart last December). They may not sounds as fancy as Toys’R’Us as BOGO smoke-and-mirrors LEGO sales, but you don’t have to do complex calculations just to figure out if you are actually getting a deal. Also, Jason’s point about the LEGO VIP program is enlightening. If you are close to a LEGO store, or if you shop at the Online LEGO Shop, make sure you take advantage of this program. Especially when you can combine it with LEGO’s free shipping and double VIP point offers (like currently), you can really get an excellent deal as these offers are stackable. I
also like Jason’s strategy of going right back to the store and getting a free set with the just acquired VIP points. How is that for an instant saving? 😉 So what do you think? Did you learn something from the video? Have you ever fallen for the Toys’R’Us advertisements? Do you have your own LEGO shopping tips you would like to share? What is your shopping strategy for this holiday season? Feel free to discuss in the comment section below! 🙂You may also like to check out the LEGO Shopping Tips section for more LEGO shopping ideas and strategies or select from the following posts:LEGO Star WarsSee allLEGOLEGO bricks are a classic building toy enjoyed by the young and young at heart for generations. At Walmart, you'll find a wide seletion of LEGO sets, all at Every Day Low Prices.LEGO sets let you build new and familiar worlds in creative ways. With LEGO Super Heroes sets, you can enter the worlds of your favorite superheroes, including Batman, Spider-Man and the Avengers.
Enter the Star Wars universe with Star Wars LEGO sets. Recreate scenes from Jurassic World with LEGO Jurassic World sets. Or build your own urban landscape with classic playsets'>LEGO city sets. Fans will also get a kick out of LEGO Minecraft sets and LEGO Creator sets. For imaginative pretend play, check out the LEGO Friends sets. And for the perfect introduction to building with LEGO bricks, pick up a LEGO Juniors set.With a huge selection of LEGO sets and other toys at great prices, Walmart has you covered. Sign up or log in to customize your list. Here's how it works: Anybody can ask a question The best answers are voted up and rise to the top Comparing a few Lego products at the official online store, I found U.S. prices seem to be consistently around 70% of those in Europe given current currency exchange rates. That's a surprising difference. Given that U.S. import tariffs apply to products manufactured in Europe (such as Lego), one would expect the price difference to be the other way around.
Edit: Found a relevant quote in a book written by Alex Stewart: America is by far the cheapest country in the world for buying Lego; believe it or not sets are much more expensive in other countries. What is the primary reason for this price differentiation? Better competition in the U.S.? More wealthy Lego fans in Europe? To answer this question, we must first check the accuracy of your observation that "U.S. prices seem to be consistently around 70% of those in Europe given current currency exchange rates." , we can compare the prices of sets released in 2014 that are listed with prices in both USD and EUR. I downloaded this data and used a spreadsheet to analyze the prices. Using the 2013 average USD to EUR exchange rate of 1.3282465 I converted retail prices from EUR to USD. On average, the retail prices on the US site are 77.06% of the retail prices on the sites where prices are listed in EUR. So your observation is close to the apparent actual difference in listed prices, although it is closer to 80% than 70% on average.
The member states of the EU each set a value-added tax (VAT) on items sold in those countries. This rate currently varies from 15% (Luxembourg) up to 27% (Hungary). LEGO includes the VAT in the listed price in countries where it is collected. This means the listed retail price is higher than the actual base price of the set. If you assume a VAT rate of 25% and adjust the list prices accordingly, then comparing the USD prices to the EUR prices shows that US list prices are actually about 96% of EUR prices. This is an average - many sets sell at a similar or lower actual base price in Europe than in the US (when expressed in USD). For example Set 60045 Police Patrol sells for $44.99 USD in the US. It sells for 39.99 EUR in Germany. The VAT in Germany is 19% and today's exchange rate is 1.3398. To get the base price of the set in EUR, divide the list price by 1.19. That gives us a base price of 33.60 EUR. Multiply that by the current exchange rate and the USD price you would pay in Germany for this set is $45.02 - just three cents more.