Canadian = American Dollar

[AndrewF]

Andrew..... you aren't kidding about prices. I can definitely see how this will sting Canadian business'

You are right... they AREN'T going to lower prices one cent.

We got a stroller car seat combo here and it was $199.... just for giggles our last trip to Canada we checked the price of the SAME stroller car seat combo.... it was over $400. Now if your dollar were worth the same amount.... where would you buy it from? I am with you. I couldn't just overlook that $200+ difference just to support a Canadian business who in all reality is just ripping me off now.

Makes you shake your head, when you see differences like that.

About 3 years ago, I was buying a slide scanner. The best price I could find in Canada was about $520. When I looked at the cost in the states - even with the coversion, brokerage fees, over-inflated shipping costs and all the other little add-ons, I saved a little over $200. We've been getting nailed (in some retail areas, like higher-end electronics) for years.

 

[GlassOnion]

I don't think it's about "we're better than you" or anything, just that people will give business where it's cheaper. Now that the dollars are equal (for the time being) as sparks said in the stroller example, what are you going to do? Buy a $400 dollar stroller to support a Canadian business or order a $150 stroller off the internet and come out at $200 after shipping/tariffs?

I know which one I'd do in a heart beat.

 

[Puckstop31]

Question for the nucks'

Does the government make you pay PST/GST on items purchased on the web?

 

[savethebulliedbreeds]

Yuppers!

 

[AndrewF]

Actually Puck's statements go along with a bit of a debate we've had here(in my office )...

Our products are typically priced based on the US dollar being worth more.
Example a book that costs $5.99 US is $7.99 here.
Which is even wierder considered the book is probably printed on paper from Canadian trees but anyways...

So of course... now that the greenback and loonie are basically equal why does that same book still cost $7.99 instead of the price being lowered.
General consensus on that issue seems to be that somebody is getting rich.

At any rate, it's not likely to stay at parity to long... typical economist forcast is that it should be low to mid 90's. The booms have more to do with American economy falling on it's face and increased global interest in Canadian business which the market will eventually adjust for.

At any rate... the disadvantage is in export... however we now have more of an advantage on imports as any products we import.
Overall it's not a bad deal as other foriegn economies view the Canadian economy as stable and have started to invest more in interests here.
So while we'll likely see a slight decline in trade with the US... however if current econonomic growth in Canadian interests abroad continues we'll be able to make up that loss with other nations who previously didn't do as much business with Canada.

Overall... it's a double edged sword.

There was someone on the radio talking about books and parity on Friday. It made for some very interesting points.

In practice, the books I bought on Saturday were $9.99 US and $11.99 CDN. Doing a quick conversion, thats pricing the loonie at $0.83 US, which was, IIRC, pretty close to where the loonie was about a year ago.

I could let the increase on books slide for now because the books I bought were probably printed a year ago. If the dollar remains high (not parity, but close), I'd hope to see an adjustment in the not-too-distant future (ie, allow older stock to pass through the system and time for the newer stock to reach the retail level). I expect that won't happen.

 

[AndrewF]

Question for the nucks'

Does the government make you pay PST/GST on items purchased on the web?

For orders orignating in Canada, you pay GST and the PST of the province the transaction takes place - which makes Alberta a wonderful place to buy from

For international orders it's a crap-shoot as to whether or not you pay GST and it hinges largely on the method of delivery.

 

[SharkyX]

Well I found even one time when I did order from Alberta on initial order I paid no PST... thought it was wonderful... however when I went to pick my item up (they shipped with greyhound btw) I had to pay PST of Ontario on a $400 item which I wasn't exactly prepared for.

That being said I bought my Xbox 360, I bought it via E-bay and paid no Canadian taxes. Just exchange. Shipped via DHL.
So it no only seems to matter who your shipper is, but also what/who you're buying (from).

I don't think we'll see a significant surge in consumer sales.. that action is more likely to take place on commercial/industrial levels where differences are measured with lots of 0's attached to the number.

I would still buy all the products I buy in Canada, in Canada... the exception being from big box stores like walmart where I really don't care if it hurts that...

 

[Aussie Red]

All I can add is to be careful what makes you happy. The U.S. dollar went up and the greed of the worker began and the outsourcing began. Loss of jobs and to add to that you will also get what we have now a large increase in illegals maybe you can take our overflow.

 

[CelticxConnections]

I'm in the same boat as SadieBlack. Even where I live (middle of the state) a quarter is a quarter, its been that way since I can rememeber. Heck even the banks take them as a US quarter. There is not a ton floating around but everyone is likely to have used one before.

I don't see anything wrong with them being equal now.

 

[sparks19]

I'm in the same boat as SadieBlack. Even where I live (middle of the state) a quarter is a quarter, its been that way since I can rememeber. Heck even the banks take them as a US quarter. There is not a ton floating around but everyone is likely to have used one before.

I don't see anything wrong with them being equal now.

I believe coin has always been cent for cent.... I'm not sure if this is what you mean but a US quarter is the same as a Canadian Quarter.... however, a one dollar bill is not.... nor is a $5 a $10 etc etc.