Another observation about prices

[pikehunter]

I figured what the heck, everyone is always talking about the benefits of upgrading your fishing gear especially regarding line that I considered trying P.P last year but I didn't want to pay 19.99 for it so didn't buy any. So this winter I've been looking around and I see that it is still the same price!

 

They can't blame it on old inventory as the line I have seen is recent stock signified by the different packaging. On a recent trip across the border to Niag. Falls I saw it in Wal Mart for something like 13 dollars and change. So the stores are still charging about 50% more for it in the great white north! I wonder how many other products have not had their prices re-adjusted?

 

Sorry to beat an old horse but you know what I mean.

[Greencoachdog]

I've seen the talk on here about the Ca./USD situation. Even though they are neck and neck in currency exchange, the USD still has considerable more buying power in the US than the CAD has in Canada.

 

Can y'all say "Inflation"?... sure!... I knew you could!

[Casey123]

Check out the price of a new car or boat, etc. Anyways buy in the US and screw the retailers trying to pick up the extra points.

[NBR]

I come up to Canada for a two week fishing trip every year. In past years I have bought all of our groceries and like items in the area where I'm staying.

This year I plan to bring most of what I need the Canadian and US dollar at par is fine with me but not coupled with the much higher Canadian prices.

[silveradosheriff]

Current Canadian inflation is 2.4%

Try again....

[Greencoachdog]

Current Canadian inflation is 2.4%

Try again....

 

 

... and your explanation for the price difference is???

 

 

it's not necessarily the current inflation rate that have the prices higher, look at your past rates.

Edited February 17, 2008 by Greencoachdog

[silveradosheriff]

Good question - most likely the interplay across a few factors.

 

1. Lower volume - which typically mean higher margins

2. Operating costs:

2.1 Wages

2.2 Transportation costs

2.3 Energy costs

3. Taxation

4. General Administration (could be placed in second category as well)

 

Remember that inflation is about the change in the price level, not the absolute level of the prices.

[Greencoachdog]

Good question - most likely the interplay across a few factors.

 

1. Lower volume - which typically mean higher margins

2. Operating costs:

2.1 Wages

2.2 Transportation costs

2.3 Energy costs

3. Taxation

4. General Administration (could be placed in second category as well)

 

Remember that inflation is about the change in the price level, not the absolute level of the prices.

 

...and your past rates were?

 

... and what would your explanation for higher operating costs be?

[Canuck2fan]

I come up to Canada for a two week fishing trip every year. In past years I have bought all of our groceries and like items in the area where I'm staying.

This year I plan to bring most of what I need the Canadian and US dollar at par is fine with me but not coupled with the much higher Canadian prices.

 

Actually our regular grocery prices are on par with what you pay down there... Your specials are good though on things like milk, eggs and chicken.... However, cigarettes and booze are much cheaper stateside. A friend of mine was in Florida last week and he OWNS a food store here and was shocked at the number of items that cost more down there than what he charges... I occasionally look up store flyers in the U.S. and find very little difference.

Edited February 17, 2008 by Canuck2fan

[silveradosheriff]

Sir, I broker in facts.

 

Here are the inflation rates since 1995:

 

YEAR: US - CDN

1995: 2.8 - 3

1996: 3 - 1.6

1997: 2.3 - 1.6

1998: 1.6 - 0.9

1999: 2.2 - 1.7

2000: 3.4 - 2.7

2001: 2.8 - 2.6

2002: 1.6 - 2.2

2003: 2.3 - 2.8

2004: 2.7 - 1.9

2005: 3.4 - 2.2

2006: 3.2 - 2

2007: 2.9 - 2.9

 

If you still think it is inflation - I cannot help you.

 

Here's a hint......

Twelve year CAGR on Food is 2%.

Twelve year CAGR on Energy is 12.1%.

Edited February 17, 2008 by silveradosheriff

[Greencoachdog]

Sir, I broker in facts.

 

Here are the inflation rates since 1995:

 

YEAR: US - CDN

1995: 2.8 - 3

1996: 3 - 1.6

1997: 2.3 - 1.6

1998: 1.6 - 0.9

1999: 2.2 - 1.7

2000: 3.4 - 2.7

2001: 2.8 - 2.6

2002: 1.6 - 2.2

2003: 2.3 - 2.8

2004: 2.7 - 1.9

2005: 3.4 - 2.2

2006: 3.2 - 2

2007: 2.9 - 2.9

 

If you still think it is inflation - I cannot help you.

 

Here's a hint......

Twelve year CAGR on Food is 2%.

Twelve year CAGR on Energy is 12.1%.

 

 

By those figures, and given the U.S. Canadian price difference... it looks like you could use more inflation.

 

Then funny thing about inflation ( that isn't really funny at all) is that prices never go back down. They may hold steady, but rarely drop.

 

... and just going back to '95 isn't nearly far enough back.

 

Edited to say:

I did some checking myself, going back to 1970.

 

The average annual inflation rate for the U.S. was 4.63% over the 37 yr. period

 

The annual inflation rate for Canada was 4.72% for the same amount of time.

 

Not a big difference, but yes... inflation is part of the reason.

Edited February 17, 2008 by Greencoachdog

[crappieperchhunter]

I think a lot of the pricing hasn't changed simply because nobody is stepping up to take the hit.

Debbe always wants a funny desk top calender for her office at work..so Santa hunts one down every year.

 

Right on the packaging it said $14.95 US or $19.95 CDN. I didn't get any kinda rebate. This coming Xmas I expect to see the same gouging. Not many companies are going to mark anything like that down. They are just going to carry on with there current pricing unless there is a huge market backlash and they are forced to change.

[DMASSE]

Where r u looking, we have it for $17.85 and I think Lebaron's is $.15 more

 

The major companies have dropped there prices, being in the business I see and order alot of the new fishing products, Hunting and Guns are the same, price dropping like crazy

 

Just my 2 cents worth

 

Dave

[Ramble]

I know what you are talking about...i won't mention the store i was in but i heard a manager and employee talking about how the chain was changing thier packaging to remove the american price from their products...because it was cheaper then the canadian pricing even with the strong CDN Dollar. Other then Greed I'm having a rough time understanding it myself?

 

-R-

[Radnine]

I can’t imagine the price of food being that much different that it would be worth hauling groceries up from the States, in fact the price of ice to cool it for the trip might tip the balance.

It is a funny way of looking at economics, anecdotally that is. We buy from the dollar store, and then shake our heads when our great factory job has been off shored. We love the fact that we saved three dollars on a Rapala without considering that we drove three hours and two border crossings for it (or paid to drive to, park at, and pay to get into, a fishing show).

As far as big ticket items go, I bought a boat recently and in doing so made contact with lots of dealers here and in the near States. Every quote that I was given was higher or within dollars from the US dealers (honest). Now used boats may be a different story, because of the situations they were originally purchased under, but those were my findings. Couple that with establishing a relationship with a local dealer for service and warranty benefits, and it makes you reconsider buying a boat cross border.

Thus endith the sermon.

[Guest lundboy]

Good question - most likely the interplay across a few factors.

 

1. Lower volume - which typically mean higher margins

2. Operating costs:

2.1 Wages

2.2 Transportation costs

2.3 Energy costs

3. Taxation

4. General Administration (could be placed in second category as well)

 

Remember that inflation is about the change in the price level, not the absolute level of the prices.

 

That's nothing. The other day I picked up a Valentines card in Hallmark, the price in U.S. $2.99, Price in Canada $5.49!!! That's 84% more!

 

Keep in mind that the published inflation rate is based on the market segments that inflate the LEAST in the given period. So for example... if the price of oil goes up 2.4%, and the price of food goes up 15%, guess which one they base the index on?

 

Similar shenanigans go on with the unemployment rate. Did you know it is based on how many people were eligible to collect EI, and not the actual people that are unemployed that don't qualify for EI for one reason or another? It also doesn't take into account how many actually found work, and it doesn't count the people that lost a $25/hr manufacturing job and had to take 3 part time service industry jobs to try to make ends meet.

 

So the published inflation rate offers very little to explain the difference in price.

Edited February 17, 2008 by lundboy

[Casey123]

My wife and I refuse tobuy anything made in China, Christmas shopping for our family took 3 times as long but there was a certain sense of satisfaction.

That being said we are in the market for a new Truck and Boat this year. Why are the MSRP for vehicles 20% + less in the USA, if you don't believe me look at the following:

 

An Audi Q7 US vs. CND

A Volvo XC90 US vs CDN

A GMC Yukon US vs CDN

 

Then you need to look at the boats, North American Made products, Tracker and Lund both have beautiful boats, only problem is the price spread.

 

I understand that it costs more to do business in Canada and that the dealers do not push through the same volume as US Dealers, but what about the savings, health care premiums, US is much higher as they have no gov health care, also litigation, this cost is built into every US price because in general terms the US is a much more litigous society then we are. If in doubt PM me and I will fill you in on the details as we import equipment from Europe and are in the process of expanding into the USA.

 

There is no real public outcry, in November when the public turned the heat up, the car dealers started to offer cash rebates, but they never really adjusted their prices on a permaent basis. Know the heat has died down, those cash rebates only apply if you buy cash. In the US the price is the price, and they still offer low fiance rates.

 

I would like to support my local business, we have always made a point of avoiding the big box shops like wall mart, Home Depot and Best Buy, but at what cost am I willing to pay to support our local dealers. Is a $71 000.00 CDN Volvo that is only Worth $48 000.00 US really worth my loyalty. Should I pay $23 000.00 more to say I am proud to buy CDN?

 

You tell me!

[Guest lundboy]

I can't imagine the price of food being that much different that it would be worth hauling groceries up from the States, in fact the price of ice to cool it for the trip might tip the balance.

It is a funny way of looking at economics, anecdotally that is. We buy from the dollar store, and then shake our heads when our great factory job has been off shored. We love the fact that we saved three dollars on a Rapala without considering that we drove three hours and two border crossings for it (or paid to drive to, park at, and pay to get into, a fishing show).

As far as big ticket items go, I bought a boat recently and in doing so made contact with lots of dealers here and in the near States. Every quote that I was given was higher or within dollars from the US dealers (honest). Now used boats may be a different story, because of the situations they were originally purchased under, but those were my findings. Couple that with establishing a relationship with a local dealer for service and warranty benefits, and it makes you reconsider buying a boat cross border.

Thus endith the sermon.

 

Besides, when you reach the Canadian border they will make you turn in your Meat, Dairy and produce. It's illegal to bring it across the border.

[bucktail]

IT's greed and nothing more.

[gekhunter]

Good question - most likely the interplay across a few factors.

 

1. Lower volume - which typically mean higher margins

2. Operating costs:

2.1 Wages

2.2 Transportation costs

2.3 Energy costs

3. Taxation

4. General Administration (could be placed in second category as well)

 

Remember that inflation is about the change in the price level, not the absolute level of the prices.

 

Well said, I have to agree, there are a variety of factors influences the price and for those reasons above we shouldn't expect equal prices even if the dollar is at parity.

[pikehunter]

Not asking for equal pricing, just pricing that is fair, a 5 - 15% difference can be justified.

 

And yes I agree that some food prices are better in Canada than the States, but then I believe that is only a regional observation because of grocery store competition in Southern Ontario. We have an overabundance of grocery stores as to the population and now Wally is entering into food big time so we should at least be assured that grocery costs may remain reasonable and the price we pay in the Toronto-Hamilton-Niagara area will be dictated by weater and fuel costs.

[OhioFisherman]

As long as I remember the prices in Ontario seemed high, even with the exchange rate. Other than transportation costs and import fees whatever they amounted to over the years I could never understand the reason.

 

I can only recall buying a couple of fishing lures up there, Heddon Strawberry Vamps, wood ones, because we didn`t see them here and they caught some fish, but like the 1960`s? Bought some line up there too, emergency.

 

Even cabin rental prices seemed to go up quickly, demand? an increasing population, an increasing cost for water front property?

 

LOL back in the 60`s a cabin rental was like 60 to 90 dollars a week, like a third to half an average Americans weekly pay, so it didn`t hurt as much.

[holdfast]

I think this is Kind of related. Market Place just had a show to see if the drop in GST actually made it to the Consumer. WRONG O. Prices never lowered, But the drop in GST was absorbed to the seller that profited. Example they gave was your Movie Theatre ticket. Your hockey ticket. How about your car Dealers. So do you really think that these same companies will loosen THEIR Pockets for us the consumer with the Dollar Exchange. Slap yourself silly if you think we're not getting Gouged.

[Uncle Buck]

That's nothing. The other day I picked up a Valentines card in Hallmark, the price in U.S. $2.99, Price in Canada $5.49!!! That's 84% more!

 

Don't you know that the dollar store sells cards? I refuse to buy cards anywhere else...

[Uncle Buck]

you guys complain about the US... do you have any idea what the overseas market is doing to the manufacturing sector here in Ontario?