LEGO company ticks me off!

[DaniB]

I received an e-mail about a new product they have called "Pet Shop". Now my daughter was just telling me a day ago that she wants more lego for Christmas. Her birthday is next month.

So, I click on the link to discover it's $199! However, when I realize it's showing me CAN funds - I switch it to US funds and it's now $149! What the heck? I phone them and am told it's because of the exchange rate. Hello?? If that's truly the case, then it should only cost me $147 or so CAN right now.

And even though I have a US Visa, I cannot pay the US price. Because I live in Canada, I would have to pay the extra $50 to get this item. And that extra $50 is not the shipping. I still pay the shipping on top.

WHAT A RIP OFF! Yes, I'm mad.

 

[EKW]

HM...you might call and ask when the price was set and how often they adjust the price to reflect current exchange rates.

For the time being, do you know anyone in the US who can buy it for you? It would be cheaper to pay to mail it.

 

[walkdmc]

I'm going to sound ignorant but I thought everything was more expensive in Canada. For example, magazines I've seen would have a US price and Canada price and they were never the same. I assumed this was true for most/all merchandise. Please educate me.....why is it surprising the Lego set costs more in Canada? Is it an exchange rate thing? A shipping thing? IDK.

 

[DaniB]

HM...you might call and ask when the price was set and how often they adjust the price to reflect current exchange rates.

For the time being, do you know anyone in the US who can buy it for you? It would be cheaper to pay to mail it.

No, I'm afraid I don't know anyone in the States really. Thanks for the idea though! I e-mailed Lego my complaint as well.

My husband & I will be in Disney mid-Sept and the Lego store is on our must do list. However by then I'm making purchases for Christmas and wanted to get more of the Christmas themed lego that she loves. It's become kind of a tradition and I'm not going to spend that much on the Pet Shop in addition to the Christmas themed lego.

I'm going to sound ignorant but I thought everything was more expensive in Canada. For example, magazines I've seen would have a US price and Canada price and they were never the same. I assumed this was true for most/all merchandise. Please educate me.....why is it surprising the Lego set costs more in Canada? Is it an exchange rate thing? A shipping thing? IDK.

Yes, things are more expensive here. Honestly, they have been expensive for years and years. It's only the past few years people "woken up" to that fact and started demanding fairer prices.

Now I can understand a slightly higher cost when I purchase a product in a retail store location. I suppose the cost of trucking products to Canadian stores have to be build in to the price somewhere... But honestly, the price difference had always seemed to be higher than what seems right...

However this product is in the States at Lego's warehouse. Lego will charge me shipping fees to Canada. That is reasonable. So why the heck are they charging me an extra $50 for a product that has not hit Canadian soil yet? It certainly cannot be because of the cost to ship it to Canada. I'm paying for that seperately under "shipping" fees.

The CR on the phone could not come up with a reason beyond "exchange rate". Which is unacceptable as an answer with the exchange rates for the past year.

To me, it's price gouging.

 

[beansmom]

To me, it's price gouging.

guess you better not go to Europe then, things are very expensive there compared to the US.

 

[DaniB]

guess you better not go to Europe then, things are very expensive there compared to the US.

Thank you for your input. Though I'm not quite sure how it is relevant... Did you actually read the posts?

I'm not talking about purchasing an item in Europe, let alone in Canada. I'm talking about an item that is being sold by an US company, sitting in a warehouse somewhere in the US. I am perfectly willing to pay the shipping rate. I am perfectly willing to pay a REAL exchange rate.

I am NOT willing to pay an extra $50 for an item that will not need transportation costs built in to it, as it is not being shipped to a Canadian store (let alone an European store) for me to purchase on Canadian (or European) soil.

ANYONE / ANYWHERE purchasing an item off the internet, should only have to pay the true exchange rate (or very close to) and shipping costs. Not be marked up & gouged, in addition to shipping & exchange rates, because they live somewhere else!

 

[averysmom]

I would be furious - speak to a supervisor! How can they charge you 25% more just because you live in Canada? I find it bad enough when the prices here are higher - like at gymboree where at shirt is marked 12.95 US and then 19.50 CDN - but at least then they can try to explain it to you... they had to ship that shirt to you, they had to pay duty on that shirt to bring it into the country, etc.

When you are STILL going to have to pay shipping and duty, why on earth should you have to pay 25% more on top of that when our dollar is 4 cents higher than the US dollar right now!!!!

 

[Diegosmom]

Not sure that the exchange rate is but are you sure the site isnt showing you the price in can dollars like $199 can dollars as compared to $150 american dollars. Does that make more sense? not sure if that lines up more with the exchange rate or is it more 1 to 1?

Never mind just checked online and I see the can dollar is actually stronger then american...there goes that idea

 

[livndisney]

Did you see this on the Lego page?

Canada: All pricing is in Canadian dollars. Prior to June 16, 2004, all pricing was in US dollars. Appropriate HST, GST, and/or PST will be added based on the province to which your order is being shipped. Pricing includes any cost for duties.

 

[Diegosmom]

just checked amazon and it is listed for $240...

 

[4orm]

Most companies do this. I've been told numerous things from the time it takes them to adjust for the rate fluctuations internally (it's been a great many years that the Canadian dollar was worth 68 cents of the US) which I think is a load of you know what. I've been told it's because of our smaller market. That's more believable I suppose. They need to mark it way up to make money or else it wouldn't be worth it to many companies since we have a vastly smaller market. The prices have been like this for so long why would they change it? If they can price things up here higher and people still buy it... It's a pain.
Buy it on eBay or have it shipped to your resort.

 

[DaniB]

True, it could be duties. Thanks for posting that livndisney! I'm not so sure that duties would actually be $50 worth but that's what the difference probably is. I had completely forgotten about custom/duties! Of course the government has to get their share. When I think about it, I always thought shipping included duty costs.

The taxes I have to pay for seperately. I would be charged 13% HST (taxes here) for both the $199.99 CAN and $16.95 for shipping.

With electronic billing, there's no reason to take that long to adjust for rate fluctuations. Honestly I would much rather they keep the prices in US funds. Then I'll know how much I'm paying for the exchange rate, Ontario taxes and their shipping fee. Leave the duty/custom fees to the government to collect when they deliver the product. Then I'll know how much I'm paying for that as well.

Ah well. This sale is lost. By the time we are at Disney I will not want it. We'll be spending enough on a Christmas theme set for DD, another set for DS, 2 Christmas advent lego sets for our kids & my nephew, and 2 or 3 fill-a-cups.

 

[SaraMc]

Do you live near a border where you could go over and pick it up at a Toys R us?
Things are more expensive here its true, but our standard of living is also higher and our min. wage in most provinces is over $10.00.

Its does suck that we do have to pay a lot more for things, we are kind of lucky we live 30 minutes from the border and shop across a lot.
Also not sure if your in the GTA but in Mississauga there is a lego warehouse they are often far less for lego sets etc.

 

[anotherdismom]

I work for a company that ships to Canada & world wide - the duties add up to *a lot* it really stinks. Shipping to South America is the worst I think. At times, customers refuse the shipment b/c of the duty fees. I'd guess that it is "duties" more than the exchange rate and the customer service rep just doesn't know that. I show a 15lb box from Seattle, WA to Vancouver, BC (only a few hours away) and shipping is over $100... which would include customs... OUCH!

 

[bumbershoot]

ANYONE / ANYWHERE purchasing an item off the internet, should only have to pay the true exchange rate (or very close to) and shipping costs. Not be marked up & gouged, in addition to shipping & exchange rates, because they live somewhere else!

You might want to chat with your own government about this issue, though. It is likely their fault.

DH works for Amazon, in the Kindle department. Canadians, and people in various other countries, get to pay more than the exchange rate accounts for, because their governments require it. Of course Amazon gets the heat from it from customers who don't know/understand, but they would LOVE to charge less...they just can't.


So this might go back to your own government. After all, you ARE importing something into Canada, and your gov't needs to make money on it somehow!


(just don't try to buy that thing in a couple years once it's been discontinued...check out ebay for some extreme capitalism when a set isn't available anymore! )

 

[DaniB]

I just want to mention that I was upset, of course, yesterday when I started this thread. I had phoned Lego twice and spoke to two different CSRs - who could not explain the price difference beyond "exchange rate". As much as I may not like it, raising the price to include duties makes sense and I can understand the price difference.

However when their own staff cannot explain the price difference, it sure makes for upset customers. I do think Lego should explain the price difference more clearly on their store website rather than "hiding it in the fine print". It would most likely stop irate customers (like me) before the rant even starts! Hmm... I might e-mail Lego directly with that suggestion.

In any case, I am very happy that Lego does indeed ship to Canada (and other countries), as there are way too many companies who refuse. Most likely they do not want to deal with shipping & clearing customs. I was especially glad last year when I could not find the Christmas themed set DD wanted here in the stores and ordered it from them.

Do you live near a border where you could go over and pick it up at a Toys R us?

Its does suck that we do have to pay a lot more for things, we are kind of lucky we live 30 minutes from the border and shop across a lot.
Also not sure if your in the GTA but in Mississauga there is a lego warehouse they are often far less for lego sets etc.

We're about an hour east of Toronto, so Buffalo would be the closest I imagine. Our past Disney trip was the first time across the border in 15-20 years. One day I want to do some border shopping, but not if my kids are with me!

I would love more information on this Lego warehouse in Mississauga please! I don't know anything about it. Although I did find out on Lego's website that a new Lego store opens in Toronto this weekend!!

You might want to chat with your own government about this issue, though. It is likely their fault.

DH works for Amazon, in the Kindle department. Canadians, and people in various other countries, get to pay more than the exchange rate accounts for, because their governments require it. Of course Amazon gets the heat from it from customers who don't know/understand, but they would LOVE to charge less...they just can't.

Yes, I'm quite sure it's due to the government. I also believe our government is the reason we have so few mail order companies in Canada and internet-based businesses in Canada. It drives me nuts to see the amount of shopping that can be done online in the States, but not here... Even big businesses that are in both the States & Canada, have great websites for Americans consumers but either none or very very limited for Canadians.

It's only going to change the more people become aware. If companies do not clearly state the reason Canadians are being charged more, well - consumers are going to continue to blame the individual companies instead of turning to the government to make changes.

 

[EKW]

Okay, I am an idiot...Canada is charging duty on Legos? Why? I can understand duty on items that compete with items that are Canadian-made, but it's not like you have an option to purchase Canadian-made Lego's.

Can you tell I don't travel internationally?

To be honest, until now I had no clue that Legos were produced in the USA!

 

[MAH4546]

Anybody who thinks the company is ripping them off lacks any understanding of economics.

America is a larger market, plain and simple. Distribution costs are dirt cheap, volume is high, import duties are near non-existant, and taxes are low. All companies have fixed costs, LEGO included. LEGO Canada, independent of LEGO USA, needs tom pay for staff, advertising, warehouse, distribution, etc. Not only does this all cost more in Canada in e first place, but it's spread over a market that is the second largest country in the world and less populated than California. That means goods are more expensive. That's life.

And the good is certainly not being sold by a U.S. company. It is being sold by LEGO Canada, Ltd., based in Toronto. They share distribution warehouses located in the United States, which actually keeps the prices in Canada low. There are no import duties.

Companies can afford to offer goods at a lower price in the United States. LEGO is doing nothing wrong. Have you seen how much cheaper luxury cars are in America? When BMW can move over 220,000 cars annually in the United States, it can afford to price the goods lower. And our lack of high taxes and import duties only helps even more.

Companies in Canada cannot constantly place prices in flux based on U.S. exchange rates. That would only make things more expensive in the long run
through inefficient operating practices.

Canada's high tax rates and higher import tariffs have part of the blame, sure, but you can't blame the government for it's small market size that does not allow goods companies to spread fixed costs over a large population base.

It's not right to say things are expensive in Canada. LEGO costs just as much in most of Europe as well. The reality is, things are cheap in America.

When one lives in a low tax society with the most lucrative consumer goods market in the world, things are going to be cheap.

 

[lisalis]

Yes, it sounds like this is a lesson in economics. Items are cheaper in the U.S., but we pay more out of pocket for other things that the government doesn't provide. I have friends and family in Canada who take annual shopping trips to the States to stock up on certain brands of clothing.

 

[Disney*Dreamer]

. I'm talking about an item that is being sold by an US company,

Actually Lego company is based out of Denmark. Which has absolutly nothing to do with your thread, but just random knowledge that I remember seeing on tv. lol.

It is completely redicuolous that you are going to be charged $50 more. Have you tried looking on ebay to see if you can get it there for the more fair price? Good luck.