Another observation about prices

[irishfield]

Prices are cheaper state side so they can pool their left over funds for medical issues. Sure wouldn't want to be handed the bill for tomorrows episode with my daughter. Remember...someone pays for our free medicare here in Canada... and it ain't the government !!

 

Companies in the US don't have to raise prices on everything to cover the 2.95% OHIP charged on gross Payroll. Don't suspect they match the CPP or 1.4x UI payments made by employees either. Not sure what the US pays for workers comp... we get nailed for anything from 2% to 30% depending on the industry here in Canada. Property taxes are no where near as high in general in the US (hell parts of Texas, and some other states, will give you free facilites..and I'm talking anywhere from 10,000 square feet to 1/2 a millon square feet... and wave all taxes for 5 years just to go there), although electricity (at least used to be) is more expensive. Thanks to all this, and other issues, even with the dollar par for par and a supplier next door to both a US store and a Canadian store selling at the same wholesale price... the Canadian store has to have a higher sale price to make the same profit.

Edited February 19, 2008 by irishfield

[kickingfrog]

I don't doubt that many places are trying to increase their margins with the increase value of the Canadian dollar vs the Yankee buck, and it burns me too. That said, the US minimum wage is $5.85 (American $) and the Canadian minimum wage is $8.85 (Canadian $). With with the bottom of the wage scale set lower most other wages are scaled lower as well. Start multiplying that by the number of employees and the other associated employ cost that have been mentioned above and a difference in prices to be expected. Whether that difference should be as high as they are is debatable.

 

Canada has about a tenth of the population of the US that has a huge impact on buying power as well.

[Photoz]

This is SO O O O O simple, I'm astounded no one else has mentioned it . . . . if you're going shopping for a book, calendar fishing line or something else that has one price for American $ and another for Canadian $, what would be wrong with stopping at the bank and picking up $50.00 U. S. When you take your item ($10.00 U. S., or $16.00 Cdn.) to the cash register, GIVE 'EM their $10.00 U. S., in U. S. dollars . . . . . why wouldn't this work?

[ccmtcanada]

When it comes right down to it, companies get away with these higher prices because people continue to buy them at those prices. Sure, some people are making conscious decisions to buy from the US to get the price break, but the majority of people do not do this. Unless the price difference is causing a significant impact to sales, then prices will remain higher...depsite the high Canadian dollar.

[kickingfrog]

This is SO O O O O simple, I'm astounded no one else has mentioned it . . . . if you're going shopping for a book, calendar fishing line or something else that has one price for American $ and another for Canadian $, what would be wrong with stopping at the bank and picking up $50.00 U. S. When you take your item ($10.00 U. S., or $16.00 Cdn.) to the cash register, GIVE 'EM their $10.00 U. S., in U. S. dollars . . . . . why wouldn't this work?

 

Most books and magazines now only list the Canadian price. Many people did try to pay for items that had both a Canadian dollar price and a US price. This practice was met with varying degrees of success. A store does not have to sell you and item (bad PR and business practices aside) if it choses not to.

Edited February 19, 2008 by kickingfrog

[irishfield]

This is SO O O O O simple, I'm astounded no one else has mentioned it . . . . if you're going shopping for a book, calendar fishing line or something else that has one price for American $ and another for Canadian $, what would be wrong with stopping at the bank and picking up $50.00 U. S. When you take your item ($10.00 U. S., or $16.00 Cdn.) to the cash register, GIVE 'EM their $10.00 U. S., in U. S. dollars . . . . . why wouldn't this work?

 

It won't work because a store is only obliged to take Canadian funds at Canadian prices. If it was that easy Steve I'd be putting to use my US cash PDQ!

[Headhunter]

I believe I heard somewhere that Canadian pricing is higher the the States, simply because Canadians are willing to pay more! If this is correct, then nothing will change until our collective attitudes change... and good luck with that!

HH

[Ancient Mariner]

Just to keep beating this horse;

 

I am a retailer and feel that Irishfield is right on about higher Canadian wages and Social Benefits / Health Care taxes. Would everyone who is willing to take a 35% wage cut & give up their Health Care & Social Benefits please form a line facing east on ther Peace Bridge.

 

Depsite "Free Trade", it seems that we do get hit with higher import duties on a lot of goods that come in from the rest of the world.

 

Also, everything that we bring in from the USA still requires some fairly hefty brokerage fees, which we have to pass on.

 

Oh, by the way, go buy some US $$. The average person will pay a 2-2.5% exchange fee. If you have the right connections you may get it for less, but a lot of businesses have to pay it, so they have to pass it on.

 

Uncle Buck also makes a good point.

 

Question; Where are all the decent paying Manufacturing Jobs going??

 

Answer; Out the front door of WM, BPS, LB or wherever with "Made in (insert third world country here)" !!

 

Seems too many of us have the "you should - they should syndrome". Everyone else should buy North American, but I want the lowest price.

 

At least we have the money for computers and other essentials to go with the time and freedom to sit at them and say whatever we want!!

[Loonietoon]

Hey Pikehunter, I can get it for 14.99 was on this weekend at the Boat & Fishing Show and I also have an in with the Owner of Redwing Tackle so you might want to let me know and with the Sportsman Show coming up and I will be there just might get my hands on some

[pikehunter]

Just to keep beating this horse;

 

I hear what you're saying Rob. Just that roughly 50% difference was a little much to understand at the time. A 5 to 15% difference in price is a less of a shock and is probably more in line with newer shipments on the shelf.

 

I don't make it a regular habit to go cross border shopping, sometimes a change of pace though is nice and as you are aware there are many products not available in Canada so just going over to gaze in wild wonderment can be intoxicating!

 

But then the cross border shopping problem doesn't end at Walmart or the outlet Mall. How many Canadians hop across the bridge and grab a cheap flight out of Buffalo? So many taxes and airport fees are less or non-existent in the States and that saves some a lot of money just in itself.

[Canuck2fan]

Just to keep beating this horse;

 

I am a retailer and feel that Irishfield is right on about higher Canadian wages and Social Benefits / Health Care taxes. Would everyone who is willing to take a 35% wage cut & give up their Health Care & Social Benefits please form a line facing east on ther Peace Bridge.

 

Depsite "Free Trade", it seems that we do get hit with higher import duties on a lot of goods that come in from the rest of the world.

 

Also, everything that we bring in from the USA still requires some fairly hefty brokerage fees, which we have to pass on.

 

Oh, by the way, go buy some US $$. The average person will pay a 2-2.5% exchange fee. If you have the right connections you may get it for less, but a lot of businesses have to pay it, so they have to pass it on.

 

Uncle Buck also makes a good point.

 

Question; Where are all the decent paying Manufacturing Jobs going??

 

Answer; Out the front door of WM, BPS, LB or wherever with "Made in (insert third world country here)" !!

 

Seems too many of us have the "you should - they should syndrome". Everyone else should buy North American, but I want the lowest price.

 

At least we have the money for computers and other essentials to go with the time and freedom to sit at them and say whatever we want!!

 

I would agree with some of what you say but blaming the difference in prices on our health care system is a non starter to me. Our UNIVERSAL health care system is cheaper than the American system (which is not universal btw) as a percentage of GDP so that ain't the problem. Whether it is paid for by taxes or individuals it COSTS more per capita in the U.S. for health than it does here, and that has to be figured into what products cost in both countries. So it can't be the reason things cost more here if anything that should make them cost less here. Or if you are right and it does then no economic theory I have ever heard of works....

 

Also, the only reason we had ANY CAR plants left here is because of the competitive advantage our public health system gave the big three over having to pay the astronomical private insurance rates in the U.S. Without that our plants would have been closed in the 70's.... Now that the U.S. unions have taken over the cost of health care you will continue to see plants here close and be moved back to the States. The strong dollar hurts too.

 

As for where and why the manufacturing jobs are going overseas. Ask the INVESTORS/OWNERS who buy stock in the companies that are moving those jobs off shore.... The sick thing is most of those investors are the pension plans of the workers who are selling off their OWN JOB by allowing the pension plan to fund this kind of globalization....

I wonder if we will wake in North America before it is too late?

[fishinggeek]

While it's true the American medicare system is far and away more expensive than our universal system, I think our tax system in general and relatively higher operating costs are to blame for our higher prices. Everyone, both companies and individuals, face way higher taxes in Canada than our southern neighbour. And at least in theory, any tax (whether levied to business or consumers) will almost always lead to higher prices. With respect to operating cost, we are not nearly as polarized in income as the USA. We generally have higher proportions of educated and skilled workers, so our wages are higher. And our income attributable to capital is extremely low when compared to the states, which means our equipment is much less efficient. Heavy taxes and inefficient, costly operations are the main culprits to the price differentials, in my opinion.

 

I always look at prices and I buy whatever is cheaper, whether local or an import. Though local retailers may suffer somewhat, the consumer is actually gaining quite a bit in terms of discretionary income and welfare. If I pay lower prices, that means I can buy more lures, retire earlier, or send my kids to a European university, so I am better off. By me paying higher prices to local retailers, I feel I am subsidizing companies that cannot compete with foreign competitors, and I don't feel that providing subsidies to businesses is my job. And in the end, I think it's healthy to trade between countries. If the USA is better at the retail trade, let me buy their retail products. Similarly, they can import our Canadian things like oil, forestry inputs, and even coming up here to our great fishing resorts!

Edited February 21, 2008 by fishinggeek