Fantasy Exchange Rates

Last time I looked, one of my U.K. pounds sterling was worth a little over one and a half U.S. dollars (actually $1.56696 according to XE.com earlier today). The U.K. pound to U.S. dollar rate has been pretty stable for a while now, pegged at around one and a half dollars to the pound.

You really wouldn't know this if you visited the U.S. and U.K. LEGO brand stores, however, or had a look on the respective U.S. and U.K. LEGO shop@home websites. In fact, you might be forgiven for thinking that your pound is worth just one U.S. dollar. Would you like a Slave 1 set, sir ? That'll be £79.99 if you're in the U.K., or $79.99 in the U.S., which works out at a whopping 50% mark-up for the UK shopper, assuming an exchange rate of $1.5 to the pound (it's actually an even bigger mark-up if I use the more accurate XE.com figure above). Or perhaps the stunning new UCS Imperial Shuttle, which will set you back £239.99 in the U.K., or $259.99 in the U.S. - that's around a 40% mark-up if you're in the U.K., equivalent to paying about £66 extra. These aren't isolated examples - there are many more - and I'm told that the pricing disparities in certain other countries are even greater.

Yes, I realise that stuff is often cheaper in the U.S. - economies of scale, cheaper distribution costs, cheaper rental costs (although not perhaps on Chicago's magnificent mile, or at the LEGO brand store at New York's Rockefeller Center....). But a 40-50% mark-up ? As much as that ? Also, given that many purchases are now online, it's hard to believe that many of the old arguments trotted out to explain the massive disparity in U.S. versus. U.K. prices apply any more. U.S. sales tax very slightly redresses the balance, although it doesn't even apply on some internet purchases depending on which state you're in etc.

And there's another seriously confusing aspect to all this. Some sets DO reflect the difference in exchange rates..... The superb new Cargo Train set has an RRP of £129.99 in the U.K. and $179.99 in the U.S., so the price is virtually identical. And the Grand Carousel retails for £179.99 in the U.K. and a not-dissimilar $249.99 in the U.S.. So is it therefore something to do with the licensing process ? Do the LEGO company have to pay more in Europe for the rights to the licenced themes ? Well if so, why does the (licensed) Death Star cost almost the same in the U.S. ($399.99) as it does in the U.K. (£274.99). And why is there such a massive mark-up (£139.99 versus $149.99) on the (unlicensed) Grand Emporium ?! Absolutely baffling.

Gratuitous Grand Emporium picture - lovely set !

I'm sure that someone, somewhere within the LEGO organisation understands and can explain these blatant pricing inconsistencies and contradictions, but the rest of us will I'm afraid just have to live with it because I doubt we'll ever get a credible explanation. I'd really love to know, though....