Your View

Want to bring down prices...ah! Fight the major importers / manufacturers.

Canadian Purchasing Power Parity increases as our dollar becomes strong against other currencies... but who sees it first importers!

We must put pressure on major importers / manufacturers to share their margins by targeting them. Look at the big food giants like Nestle, Kraft and P&G.; look at the big vehicle importers - all of them etc. as consumers we must write to these companies and target them one by one by not buying their products. As one brings down their price due to falling sales their competitors will follow.

Remember it is us the consumer who is responsible for getting the correct value for our dollar... delay or abstain purchasing but also let it known in groups... the bigger the pressure the quicker the price drops.

We just got back from a shopping trip to Maine last weekend. An ad in the weekend paper down there showed a new 2008 Toyota Corolla CE 5-spd. for $12,488 (which included freight, etc.). The same car is listed on the Toyota.ca website at $15,785.

That's an almost 27% difference!!! An argument was made below that manufacturing costs, taxation, etc., cause these price differences. B.S.!!! The Corolla is built in Ontario!

So, later in our trip we decided to talk to some salesmen at some of the dealerships. If I wanted to buy the Corolla in the US I'm out of luck because the dealers have been told by their head offices that if they sell to Canadian they would lose their franchise license! Nice, eh? And that just isn't Toyota. Honda, GM, all of them!

So, I conclude: There's no argument. Canadian's are being gouged!

The only price changes Canadians should see are the prices of goods manufactured in the US with full US content. The reason is that the Canadian dollar has not increased greatly in the world market. The US dollar has dropped like a lead balloon.

We are still trading at about 1.4 to the Euro. And this is because Canada is looking after it foreign debt musch better than the US. We are holding our value to the world basket of currencies where as the US dollar is not.

When the Chinese decide that the mega trillions of US currency they hold is worthless watch and see what happens to the USD.

4-5 years ago Warren Buffet moved a ton of his holdings into a foreign currency basket and was deemed to be foolish. The foolish image was supported for a year or so but now he has been proven right yet again.

We should not be looking to the manufacturers to drop our prices we should be happy that we are not going to suffer the huge price increases that the US will feel when foreign goods really move above the consumers affordable level These are the price wary individuals who have supported Toyota, Honda, Samsung, LG, Walmart etc.

Once the US starts buying GM, Ford, GE and those who still manufacture in the US their market will stablize and the trade gap will tighten, as long as the Chinese keep their hord of USD the economy in the USA will be tight but they can recover.

If China wants to mix up their currency basket lookout.

For Canadians, on a personal note, reduce your personal debt (which is always a good thing to do as it is the same thing as maximizing your wealth) because both inflation and interest rates will have to go way up for the US to control trading in their dollar. The Sub-prime fiasco will look like a rain drop compared to the hurricane that might just happen.

There can be no doubt that Big-Box Stores are not only gouging but also mutually fixing prices. Just this past week I have paid 50% more than listed US prices (Consumer Report) for latex paint, and have found that an electronic item I was considering purchasing was identically priced at two separate stores at 50% more than the listed US price.

It still doesn't stop them declaring that they are offering their goods at an "every-day low price" !!

I travel a lot for work. I am frequently confronted with the reality that prices vary from one country to the next.

I have always assumed that this is normal. In some cases, each country, even within a single economic union such as Europe, has different distribution channels for products in different regions.

To insist that prices be the same in Canada as they are in the United States is to insist that we harmonize everything in our economies… My point is, we live in a totally different country and this newfound rage against our merchants seems unrealistic, misplaced and naïve to me.

If you want cheap stuff, move to the US! Trust me, having just moved from there myself, you’ll get exactly what you pay for – You’ll also live in a culture where it’s every man for himself! At least here in Canada, ostensibly, our higher prices contribute to Employment Insurance premiums, Canada Pensions, healthcare etc... AND provide jobs for Canadians.

Please folks, always remember, Canada is a large country with a small population. Naturally, things will cost more here. In the end, I don’t care what the price of toothpaste is in Ohio.

I know that every penny counts and that, in many ways, it is harder to make ends meet now than it has ever been, but it really irks me when people get like this.

The U.S. model is a broken one – this quest for cheaper products at any cost has a very high cost indeed and can only lead us to emulate the Americans more and more. Why?

I wish more of us traveled to Europe so we could see a different model as opposed to this constant obsession with what is going on in the US. I am not saying that things are better in Europe, it is just that we have many more options than always following the dysfunctional American model.

just start buying online more. lots of retailers are offering free shipping.. or just shop at the places that cut there prices, hbc /zellers..

Len,
Your sarcasm is well received, mate.
I've described my personal experience, you've described your friends'. Fair enough. Note however, that if you want to lease or finance a vehicle, it won't work - you have to buy it outright.

If you want to know more about the process, go to the Canadian vehicle admissibility website - www.riv.ca
To quote Garet, our "market is so small", so I don't see how manufacturers will go out of their way not to sell to us - it makes no business sense.

Or perhaps, I gave the Honda agent such a charming smile that she disregarded company orders? Geez

The point is that Canadian businesses that sell American made products have received an automatic boost to their profits margins based on a nationwide event out of their direct control, without having to lift a finger.

The reason Canadians are frustrated with this is because we are informed enough to realize that our currency has more purchasing power and we expect to see the supposed good news translate into a better quality of life, without having to shop in the States.

Unless the prices are adjusted we will not realize any benefit from a higher dollar because the higher cost of living will simply drive up inflation and further dissuade exports. Any profits experienced by Canadian retailers selling to Canadian consumers will be offset by a dollar which will once again decline, but against all other currencies, not just the USD.

It is critical that the government acts to ensure that the purchasing power of our dollar is realized, otherwise we will be losing our money to the US and combined with higher inflation it could lead to a sinking economy. I think this is why Mr. Flaherty is making statements on this topic and will be forced to take parliamentary action...

To people who keep complaining about 2.5% on their credit cards when purchasing in the states (keep in mind I am not defending credit card companies but...):

2.5% is the spread Visa/Mastercard takes on the exchange from USD to CDN or vice versa.

It is no different when you go to the bank to exchange cash, or traveller's cheques. If $1 CDN is $1.02 USD, you'll probably only recieve par, maybe less if there are any transaction fees.

Exchanging to buy in the US is not really different through credit card or cash (at the most maybe 50 basis points), so it's really whether you like taking cash, or enjoy the security of credit (or getting points on your card).

I agree with Allan in Kamloops and Michelle in Canada.

Our government should not get involved with the free market of our economy and should let consumers fend for themselves.

If I want a new TV I should go to Buffalo, although 95% of the population will not do that, its hardly our problem!

The Federal Government should allow Esso, Shell and the others to charge whatever they want whenever they want without batting an eye and the same should go for electricity lets take those pesky price controls and restrictions off power, let em charge whatever they want!

Same with Natural Gas!

By all means let a TRUE free market reign!!!

I live right on the border and I buy virtually everything in Michigan. I save up to 50%.

You can take all the economists in the country and lay them from end to end - they wouldn't reach from here to a conclusion.

Bottom line. Canadians are apathetic sheep. We let ourselves be screwed.

Why is it that the socialist will take ANY opportunity to attack the Conservatives even when they are right, but I pay no mind to those who have little economic understanding trying to play economist.

First off those who expected prices to fall to even as soon as the dollar hit par need to break out an Economics 101 textbook.

I would imagine many vendors purchased much of their raw materials on yearly contract prices that do not take into account the difference in the dollars, generally speaking if you tied yourself into a contract at the start of the year you are paying for it now.

Or Retailers that bought large stocks of inventory up front with a firm horizons releases schedules who could not take advantage of the strong dollar because again the price was agreed upon well before parity.

Although there does reach a point where vendor prices do start to come down, in some cases I am seeing this in my industry and I can assure you that this most certainly IS a retailer issue not a vendor one.

You better believe that HBC pounded their vendors the SECOND that they could because of the dollar yet the prices were not passed onto you at least not till a friendly reminder was passed on from the Feds.

This is what stuns me about the continued hypocrisies from the left, when its gas prices we need a federal regulation to stop evil oil companies, yet the second the government steps in and does have a face to face they are interfering in our free market values...

Yet people wonder why no one takes the NDP seriously?

Recently, I was in a bookstore and I checked the prices on magazines. Some of them did not have prices listed but I did notice that GQ had a lower Canadian price than the American one. Way to go GQ.

On the other hand, a book about the late Princess of Wales listed for 25 CAD versus 20 USD.

DB.
I have to point out that your dollar value explanation, although pretty accurate, is missing a couple of key points.
First and foremost, not to mention paramount to this particular discussion is that the US greenback is the most widely used global standard for measuring economic factors (such as profit, loss, cost of doing business, etc.).

Its one of the main reasons the Yen appears to be so low in value when you see it on the exchange boards - the Japanese government traditionally undervalues the yen against the US dollar to ensure a strong export sector.

Without getting into lengthy discussions about the details of economics, the bottom line is that when producers of goods who measure their costs in US dollars are supplying goods to the Canadian market, their costs don't change relative to the Canadian dollar, but the profitability changes if their wholesale prices don't reflect the value of the Canadian dollar against the US dollar.

This is why I said before that its tough to tell who is profiting most. I mean I can't say if the dealership's cost for a new car has gone down and they're just maintaining higher prices in Canada because the market can bear it, or if the manufacturers are not adjusting their calculations for currency correction and thereby earning huge gains on the currency.

Either way, no explanation really works in this situation except to say that they continue to charge these prices simply because they can. So go back to grumpy's position on it and just don't buy the goods in Canada.

For the situations like Bombardier and GM, well we can't force them to compete with themselves. So they will respond to the currency issue when they're forced to by a significant drop in domestic demand.

Therefore, if you're wanting that new car and the US dealer can't sell it to you, just wait it out. As long as everybody does that and the currency remains strong the prices should come down eventually.

Naz I.

We have a local person who is now taking several of these vehicle manufacturers to court, because he and his wife just visited dozens of new car dealers in the State of Maine, and their business was flatly refused by ALL of them.

Perhaps we can chaulk that up to some kind of mass hysteria!?! I don't know, I'm no expert in that feild any more than I am an expert in economics. One dealer agreed to sell a vehicle to a family member who lives there, but would not sell to them directly!

They then had quite an ordeal getting that vehicle home across the border. These dealers were instructed to not sell to Canadians by the manufacturers. Perhaps with your superior understanding of economics, you can shed some light on that for me....

Retailers adjust prices ? You must be kidding !

I've been looking at a high end Pioneer Navigation system for my truck. An AVIC D3 to be exact.

In June the unit was on sale for $1000 at various retailers. Interesting how they all have the same price. Nevermind that I can buy for for US$700 on various Internet websites.

I resumed my shopping this weekend and was astonished to find the units still on sale for C$1000 in spite of the rise of the C$.

I buy a lot of things over the Internet, eBay and otherwise. I know that I am "supposed to" support local retailers. But am I supposed to pay 30% more (over $300) for the same product ?

The clincher for me is customer service. If the local retailer is somewhat cost competitive and knows something about the product, I buy locally. But when the "expert" on the product knows way less than I do and can't answer my questions and the product isn't even hooked up for demonstration, it doesn't take me long to log in and buy it online.

Everyone complains about taxes in Canada, and I agree that taxes are too high. But an even bigger problem is how poor our retailers are. Its funny how everyone is up in arms about high consumer prices here now that the C$ is at parity. However, the same situation has existed for years, just before it required dividing the US prices by $0.80 instead of $1.00.

The REAL problem in all this is cross border shipping. Shipping things from the US to here can be a pain, but it is getting easier and easier as time goes on.

Excuse me while I go place my online order...

I have been searching for a new vehicle and there is no evidence of prices matching those in the US. Dealers kept telling me they could not drop the prices because the manufacturers of their vehicles aren't dropping the prices dealers pay.

I wrote to Toyota about this problem and they did not have the courtesy to respond. I agree that the target of government should be the manufacturers

Do not use your Credit Card in the United States. We spend our time between Ontario and New York and I have an important warning to Canadians and cross border shoppers.

We used to use our Mosiak Mastercard and given the low dollar didn't spend too much time looking at the exchange, well we looked into it now and got a huge surprise.

The policy at this company is 2.5 % both ways. Meaning if I have an American credit they take 2.5 % off the value applied to my account. When I apply an American debit it is 2.5 % added on, regardless of the dollar value they take 2.5% with money coming in or going out in US dollars.

This is outrageous and I was shocked, if you plan on spending a few thousand dollars in the US make sure you do not use your credit card or look into the exchange rate policy. Travellers cheques are the way to go...

DB, With one sentence you offend an entire nation...

This debate is not "really" about the exchange rate. It is about purchasing power at Canadian retailers. US retail prices have not significantly changed in price. This issue is only raising its ugly head now that our dollar has regained its value when measured against the greenback.

If our dollar reverses itself US prices will likely still be the same, it will then be a non-issue because the exchange rate will then be seen as the barrier.

Note that when one trade's in One Euro for $1.50 US they don't increase their purchasing power by a half. Not sure how one reconciles that logic.

What this issue has to do with the NAFTA deal is beyond me.And while I agree that the business practices of some companies is both unethical and represensible,I am seeing prices on many things declining here.Goods manufactured in the US seem to be most in decline.Over time,businesses have no choice but to compete.If they don't,they will lose to those who do.

However,if the price here is not the same as the USA,we might want to look at other issues as well as the value of currency.I think one poster said that if the curency has the same value,the price will be the same. I'm not sure that is true.

The retailer may buy the product for the same price at the wholesale level.But if a Canadian retailer pays higher wages,more corporate taxes.more local property taxes,etc,etc,etc,he will have to retail the product at a higher price.

For example,auto makers in Ontario are able to keep many jobs in Canada because manufactureres are able to provide health care here far more cheaply than in the USA.

Should we be seeing declines in prices? Of course.But it won't necessarily be immediate or on goods imported from other than US makers.And it won't necessarily mean we will get the same price as the USA.I don't think it's as simple as that.

Personally though,I have spent some of my hard earned dollars on recreational things such as camping and fishing equipment that I had been looking at for a while.And I can say for sure,that those prices are down a lot.

So,I guess I'm not inclined to get up every day and look for reasons to complain.It looks to me like some of the logic surrounding a lot of complaints is seriously flawed,and lacking detail.

Yes,we have issues.But they will be the excetion as time moves along.

Back in October 2006 I was hot to buy a robotics kit made by LEGO called Mindstorms NXT. At the time it was priced at $350 CAD and $250 USD; when I did the conversion at the time I found the Canadian price to be $50 more than the US price.

I consequently wrote a letter to LEGO suggesting that they needed to get with the times & the rising Canadian dollar and adjust pricing accordingly. They wrote back saying that pricing was set well in advance and that, once set, it could not be changed.

Well today I check again and find that the prices are still $350 CAD and $250 USD. So with an exchange rate about $1.00 CAD = $1.02 USD this represents a $102 price difference, about 35% more than the USD price.

So in this case, I would say that NO, I'm not seeing any price drops.

NB LEGO gives it's distributors exclusivity and they bar from selling into each other's territories. So, unless you actually go down to the US, there's no way you can get one of these items at the USD price and have it sent up to Canada. (You can go through sites like eBay though...)

Naz I, what you don't understand, or seem to realize, is that there are more differences in our economy besides our flamboyant colored money. Just because our dollar is on par, or around there, doesn't mean that things should be cheaper here. It just doesn't work like that.

Not only that, but if you looked around, you'd see that retailers haven't been getting richer over the past 5 years. It is expensive to run a business in Canada as opposed to America. We are a much smaller market, and as such, things would logically be more expensive here. The keyword is logic, which many people here have thrown out the window.

You didn't complain 5 years ago, when cars were cheaper here, did you? Since our dollar was worth less, you gladly paid more than the sticker price, so you could be taking the exchange rate into account, right? Or does it not work that way? Of course it doesn't.

My focus on this issue rests in the grocery store I frequent and I am still waiting to see a reduction in the price US fruits and vegetables.

If anything, I'd suggest prices are continuing to climb, which on occasion can be justified due to weather etc., but not with the US dollar in freefall.

I'm with Michelle in my puzzlement as to why finance Minister Jim Flaherty, would be trying to interfere, especially when his government is so hellbent on capitalizing Canada into a more American image.

Business, in my experience, will reduce prices only when they face the same pressures that force them all too rarely to consider raising their employee pay rates.

As anyone can attest, retailers are bemoaning the fact young workers don't want their minimum wage part-time jobs.

Don't rip off your staff, don't gouge your clients and the profits will take care of themselves.

Kevin
Winnipeg

Just did a few checks online for fun.

Here's one of many examples in our favour:

8GB iPod nano on BestBuy.com = $199
8GB iPod nano on BestBuy.ca = $193

THE CAD price is a sale price at $199. Regular CAD price is $219.

Fred,
I would agree with you, except that I bought a car in the US last month and had all my warranty and maintenance requirements transferred over to a Honda dealership here in Canada.

Now, maybe Honda isn't GM, but I don't think car companies are too picky about who they sell to in this age of overstocked dealerships and declining sales.

Now, moving on to the crux of this argument, it should be clear that retailers are gouging Canadians for that extra profit. Essentially, we are still paying the same prices that we did 5 years ago when the exchange rate was C$1.50 = US$1.

The few examples given (the ipod, for example) don't cloud the fact that Canadians are paying 20-25% more for goods than they were back then, and I contend that neither the government nor big business can do anything about it...it's up to the retailer.

Canadians are a silly lot when it comes to money.

The fact that American and Canadian currencies are both called "dollars" is causing a lot of confusion. They are two distinct currencies and their values are a point on a scale. They are worth what's written on them only when used in the originating country.

The Canadian dollar is slightly above parity with the American dollar. This means your dollar has a bit more purchasing power than the American dollar when CONVERTED to US funds and used in a market that accepts US currency. That means you are bound by US market conditions.

It works the same for any country. If someone exchanges euros for US dollars, they can purchase nearly one and a half times what Americans can IN AMERICA, not back in their own country, because they are EXCHANGING their money. What are you not understanding?

If your retailers lower prices, it will be because they've lost customers and it's cutting into their profits due to across the border shopping (see how markets are influenced?), NOT because your dollar has risen against the US dollar. They are not obliged to pass any savings on to the consumer. Free market, remember?

I won't even get into why WalMart is slashing prices there and drawing attention to it.

Just did a few checks online for fun.

Here's one of many examples in our favour:

8GB iPod nano on BestBuy.com = $199
8GB iPod nano on BestBuy.ca = $193

The difference isn't nearly as bad as people make it out to be except maybe on automobiles... let's enjoy the fact that Canada is prospering and stop wasting our time worrying about pennies.

'Finance Minister Jim Flaherty confirmed Friday he would press retailers to bring in price cuts' - This surprises me, I thought the Conservatives where into 'free market', void of government interference.

I believe its the suppliers not retailers.

The U.S. dollar is down and we Canadians are helping subsidize the U.S. consumer.

Now the the U.S. dollar is falling it seems their prices are not rising, according to the comments from people shopping cross border.

Naz,

Your comment "if you wanted to pay $20,000 for your GM car (along with all associated costs), no dealer in their right mind would refuse your business" has a nice ring to it, BUT, when GM or Toyota or Bombardier tells their dealer that their Dealership agreement will be terminated if they sell to Canadians (when they are located in the USA) you can bet your bottom dollar (U.S. of Canadian) that the little dealer is going to say "Yes Sir" to the "Big Brother" company.

Also ... many of these companies have imposed an additional "burden" on Canadian purchasers of said items ... via the Serial # (or VIN) they can tell which items were supposed to be sold to Americans only ... take the item to a Canadian dealer for Warranty work and then you find out the additional penalty: "Surprise, you don't have a Warranty anymore, Canuck!"

Better rethink your comments, Naz.

Let me play devils advocate.

Let's assume that over the next few weeks prices balance out.

What will happen when the dollar starts losing ground? Will the noise be just as loud when manufacturers and retailers try to raise their prices to cover their costs.

Will that be allowed?

Ralph hit the nail on the head.

I also remember when free trade was brought in.

Our factories closed and went to the U.S. and Mexico where there was cheaper labour but not quality goods.

I spent alot of time REPAIRING the mistakes when I worked in a factory that did vehicle wire harnasses and I won't buy their products for that reason alone.

In the interest of Free Trade it did more for the U.S. and Mexico then it did for Canada.

Now we have a SPP and NU happening and most people are unaware of it.

Grumpy Old Man from Winnipeg has a good point, prices vary - across Canada, across the US.

The border deals that people find in upstate NY and MN and WI are not available in metro Chicago, where prices are higher.

But over time, prices in Canada should be expected reflect some deflation, even if lagging the currency exchange correction; supposedly that's not happening on a wide scale.

It's not extreme to expect Toronto prices to settle within 10% of Chicago prices for similar areas but accounting for higher minimum wages and a 99.999% legal work force in Canada.

On the other hand, companies operating in both countries may be relying on Canada for a larger share of their profits while selling for low margins or maybe cost in the US.

NBC Online had a great series called Gut Check America about how U.S. consumers are squeezed by housing, health care, education and food costs so their "better" consumer prices are not helping.

Americans on average have logged a negative savings rate for the past year while Canadians have only suffered an odd month here and there.

Some comments suggest that the market will speak and prices will adjust.

For many of us buying across the border is a short drive away (+ 4 hours at the border), when retailers realize just how much business they're losing they adjust the prices.

BUT! International companies that deal in Canada and the U.S. have hedged their risk of currency fluctuations, because whether they buy it at their store in Canada or their store in the U.S., they're still getting paid.

And they love the fact that most of the Canadians live so close to the U.S. border. Those companies now have power over the consumer and can dictate who they sell to.

These companies have sophisticated inventory tracking systems so they are fully aware of the exact amount of extra cash they are making thanks to the strong loonie.

I'm sure each company has a guy making sure that that number stays as high as possible.

Yeah ok, we have different tax structure, overhead structure, but all in all, the gross margin is clearly higher on each product in Canada.

If we see some clothes at the GAP that are twice as much as in the U.S., are we going to just not buy it?

Of course not! Like I said, they love the fact that most Canadians live close the border so they're counting on us to take the drive south.

I'd like to take a look at the income statement account called, "Foreign Exchange Gain" for these companies and compare them to other years.

This has nothing to do with free trade. Nor exploiting Mexicans or the Chinese for that matter.

Comrades, do you want free enterprise or government sanctioned business?

Seriously, there are people posting here that want the government to make sure big bad business does not screw them over, except when it is not to their benefit.

Yes, some businesses will take advantage of the system.

Don't buy their products.

You can't paint every business with the same brush just because Bombardier is acting foolishly.

Human nature seems to forbid anyone from posting about businesses that are trying to do right.

The minute I find one will you all change your opinions?

Great. Wal-Mart and Zellers - the two cheapest placest in the country. So we can all buy enormous bags of toilet paper for $4 now instead of $5.

How about getting prices lowered at stores that matter! Nobody cares about the pennies difference on everyday things, the problem is the huge differences with books, electronics, cars, etc.

Forget Wal-Mart, I'll get excited when Future Shop or Chapters starts lowering prices!

The part that is bothersome is retailers instructing their U.S. stores to not sell to Canadians.

That is easy to get around though, just pretend to be American.

Pay cash, don't say "eh", wear a cowboy hat, and chew gum loudly.

Len,

It seems obvious that you know very little about economics and the value of meny, hence your comment about government and big business.

While your tirade is well placed, and while I don't expect the government to solve our problems, in no way does big business or the government prevent Canadians in the U.S. from buying anything, and bringing them back here.

Money is money, and I assure you that if you wanted to pay $20,000 for your GM car (along with all associated costs), no dealer in their right mind would refuse your business.

It's all about basic economics 101.

It really is up to the end-retailers to transfer the benefits of their imports to us... people may not know this, but the biggest markups in the supply chain are made by retailers, not manufacturers... and the government has very little say in either.

Grumpy,
I don't mean to put words in anyone's mouth, but the truth is that Lisa doesn't just feel as though she is being deceived, she in fact IS being deceived.

When the primary justification for sticker price disparity is the relative purchasing power of the dollar, and then that relative relationship changes, it is reasonable to expect a related change in the price disparity.

That doesn't mean that the prices should instantly level out, after all there are many influences on that bottom line.

But clearly some correction is in order.

But if instead suppliers simply change the way they display the price in order to avoid informing the consumer, then that is a deceitful and un-ethical practice, however not illegal.

Its fine to say just don't buy that product, or shop at that store - and quite correct.

That's how supply and demand works.

The retailer over-charges? Don't buy from them.

The supplier doesn't pass on the savings? Choose another supplier. And so on.

But in my humble opinion, this is a discussion about whether we should expect fair treatment as Canadian consumers and whether, if we don't get it, we should expect our government to apply some preassures.

Bottom line is that as long as we continue to pay $100 here for something we can get for $60 there, we'll continue to be charged that amount.

I must have missed the part in Economics class where it said that when a currency is equal to another, prices should be the same.

Or it doesn't work like that.

I am happy to see most of you are saying that we have NOT seen any price drop yet, especially after this weekend PR moves by some big-boxes.

Even though these propagandas were brought to by the big-box media outlets (same list of example products and prices), you are not fooled.

If they don’t really balance the prices, they will pay a lot during the holidays.

To Grumpy Old Man

I bought the magazine in the US and will only shop at Michaels for one item at a time only if I have a coupon for 40% of from their flyers.

Here is my personal opinion. Manufacturers screamed for years to get free trade. They are now able to exploit cheap labor in Mexico, and keep market prices high so they can grossly inflate their profit margins.

The tax collected from these gross profits is so large, the Government is in favor of the whole thing!

When the strong Canadian dollar should be working for us, manufacturers like GM for instance, threatens its retailers in the US not to sell to Canadians so they can keep the Canadian market priced unfairly high.

(Profiteering at its worst!) Instead of the Canadian Government then fighting for fair pricing for Canadians, they make 'window dressing" promises, and try to make it harder for Canadians to shop cross border!

Ask anyone who has attempted to buy a car in the US, and bring it back what its like!

Government, and big business, (not retailers), are fleecing Canadians in all directions! Just my opinion.

Lisa, if you feel you are being deceived stop buying those products or shopping at those stores. Simple really, isn't it?

Okay, so Walmart, Zellers and a few others are lowering prices on selected items. Big deal! This is just a token public relations effort to try and convince us to keep allowing ourselves to be unjustifiably exploited.

Despite what they think, the cold weather here has not frozen our brains.

The auto companies, both domestic and foreign, continue to engage in unethical, and probably unlawful, business practices by denying warranty coverage to Canadian buyers who purchase their new vehicles in the U.S. while refusing to lower prices north of the border.

It's been reported that even that great Canadian industrial icon, Bombardier, has asked its U.S. dealers to refuse to sell their products to Canadians. Can you spell "Arctic Cat"?

For many of us, it's a short drive to the U.S. and anyone can buy over the internet from U.S. sources. I know that I and most of my family and friends will be doing our Christmas shopping in Buffalo.

Only when I see Canadian retailers lower ALL their prices by at least 20% will I go back to shopping at home.

This situation just exposes the fraud which is NAFTA.

Mulroney sold out our economy to the Americans, plain and simple. Proof? Look at the steady erosion of our industrial base since the agreement, it is practically all owned by American interests now.

Every NAFTA ruling that was on the Canadian side has been ignored by the Americans. Our 'New Government" then sold out our softwood lumber industry despite winning several rulings.

We no longer control our energy based resources, Americans own that now and get first dibs in the event of a crisis.

NAFTA was/is the most damaging piece of legislation ever to hit this country. We will see far worse if Harper gets a majority.

I couple of weeks ago I commented on Michael's sly tatics of price gouging. I made a trip to Buffalo last week on found a sign that was $13.49 in the Canadian store but only $7.99 in the US store.

I also discovered that magazines are now getting in on the deception. Fine Cooking Appetizers shows only one cover price in Canada of $9.99 but when you see it in a US store is shows $7.99 US/$9.99 Cndn.

A couple of weeks ago if posted that Michael' Arts and crafts was removing US prices for their price tags. To further this I went to Buffalo 2 weeks ago and lookied at a Halloween sign that was selling for $13.49 in the Canadain store & was $7.99 in Buffalo.

This is ridiculous. Now magazines are getting in on the action. I saw a copy of Fine Living Appetizers in a local grocery store and it had a single price on it of $9.99.

It did not indicate US or Candiain dolloars but when I looked at it in Buffalo the price in both US and Canadian was there, $7.99 and $9.99 respectivly. They are finding ways of covering the deciet.

A North America wide currency won't magically make all prices equal.

Heck we have example of price disparately between adjacent neighbourhoods and cities. And a single currency will make that change?

Most posters here have the right idea. Supply and demand largely influences price.

Try this the next time you're shopping.

Ask a retailer to negotiate on a single item. Say a bottle of coke.

Then, when the retailer stops laughing, ask him if he'll give you a better price on a case of coke.

See what I mean? Same influences but on a much larger scale are in play here.

Never mind the retailers, it's the big wholesalers that are causing the problem. In particular the automotive companies such as Ford, Toyota and Honda.

I know for a fact they have instructed their American dealer networks to NOT sell to Canadians under threat of supply, inventory or delivery disruptions.

Are high prices what we must pay for the privilege of having manufacturing plants in Canada? Let's not forget that Canada put up a sizeable portion of the start-up costs for all the automotive manufacturing plants in this country.

We also provide some of the best employees available anywhere in the world to operate these plants. And last but certainly not least we provide a ready market for the output of these factories.

Canadians deserve better than what we are getting! Stand up and fight back! Don't buy overpriced products.

If the automotive companies conspire to prevent you from buying their product at the lowest possible price, DON'T BUY!!!!!! I personally have put off buying another Camry until I can buy it right.

Toyota runs the risk of losing a customer because I have my eye on a few other vehicles, not Toyota products, and I will buy if I can find a sensible and reasonable price.

Beaconsfield Ray.
The utopian "free society" you refer to doesn't really exist.

If it did it would be called the "perfect economy" - one in which everybody always had perfect information, where individuals and businesses never coerce or mislead each other, where government had no influence on supply, demand, or pricing and where there was always perfect competition.

Now, we all know that that doesn't exist - certainly not in Canada. Our economy is close to the laisez-faire model, but with a degree of government controll and influence.

Our economy is more closely regulated than the US, but much less than most European economies.

What we seem to be seeing now is a combination of profiteering by someone - maybe on the supply/manufacturing sectors side, maybe on the part of retailers - hard to say, and, I believe there may be a tendency to believe the relative strength of the Canadian dollar is temporary, rather than long term.

Perhaps one is the reality, the other a justification. But when we see things like retailers and producers, like Bombardier, Toyota, Honda, etc. forbidding their US retailers from selling to Canadians, do we think of that as controll, or as free market?

Truth is we'd have to call it free market, but alas, control by any other name....
So if these big producers can exert that degree of controll, then we need government to examine the situation and, if necessary, step in to ensure we aren't being gouged here in Canada.

After all, most major manufacturing sectors now rely on right-on-time delivery of the elements of production for a reason. One is that they don't want warehouses full of supply because it costs money to maintain that supply. The other is so that they can be more responsive to market preassures and changes, such as the price advantages that can come from currency fluxuations.

We now have had a strong dollar for long enough that there should be few, if any excuses to keep prices relatively high in Canada.

I am not noticing any difference but I did note that the U.S. had an increase in their economy last month due to Canadians flocking across the border to shop.

We bitch about our country's dollar and merchandise yet head to the U.S. because there's looks better.

Says alot about Canadian loyalty to our own economy.

As Grumpy mentioned markets are based on supply and demand.

It is what makes or breaks a retailer.

No I have not seen prices "fall" or pair with the US dollar. I have heard that the University of Manitoba did drop text book prices, but I believe that is just a rumor.

With our economy going strong, wouldn't falling prices bring it down rather than bring it up? Sure everyone gets a deal, but what is the bottom line for economy - what goes up, must come down... right?

Until I see prices drop locally, I am still purchasing items from the U.S. (books, cosmetics, etc) as they are resonably cheap.

Case in point: I bought facial cleanser from Sephora (a beauty store) in Minneapolis last week while on vacation. Cost: $22. Here: $60. Same product, same name brand, same liquid volume, nearly $40 more. Can you see why I'm still shopping south of the border?

I am a business man. I don't like the term "ripping off". Generally speaking, prices are based upon supply and demand and market influences such as this forum. And it is working.

There are many economic pressures attached to running a business in Canada that differ from other countries. Comparing pricing in two countries is a challenging one.

Having said that, in my days as a manufacturer when we raised prices our resellers did not "complain" to us about the sudden "increase" in value their inventory just enjoyed. But on the infrequent times when prices were lowered the complaints were deafening. "You've just devalued our inventory" they would bray, now "pay us for that".

There are other issues such as cost of doing business in Canada (especially Manitoba). Taxes are outrageous.

Trouble is ours is such a socialist-like culture the average consumer does not care one wit about the profits manufacturers or retailers make.

As an aside, European countries must deal with this much more than we North Americans do. How do adjoining countries in Europe handle things?

For those still shopping in online US stores, don't forget to use TheFinalCost.com!

http://www.thefinalcost.com

We make more money, we are a different market, and we have 1/10th the population of the US. Why does everyone expect prices to be equal? The only differences between us and them isn't the color and person on the dollar bill. Everyone seems to forget this.

Plus, when our dollar dumps again, and you know it will, prices will rise again, and all hell will break loose.

This is just a setup for trouble. People will only appreciate a dime off here, or a dollar off there when it goes back to the price it used to be (adjusted for inflation).

While this is good news I don't think we should expect parity with US prices.

We have a different corporate tax structure/overhead costs here in Canada (including a much smaller population which affects demand) which will affect prices.

Plus retailers need to be sure that the Cnd dollar is actually going to stay at parity or above before dropping prices. I think there will always be about a 3 to 6 month time lag since retailers generally make product commitments at least with that amount of time if not longer.

So while it is nice to see prices at least dropping, I wouldn't hold my breath that it will continue. I also approve of the Finance minister 'reminding' retailers that they should be looking at prices, but anything beyond that is not needed.

I have no idea whatsoever why the government is getting involved in the prices consumers pay for goods. I always thought that we lived in a free society where capitalism reigned supreme.

Rather than government intervention, what we need to see is consumers getting a grip on reality and realizing that THEY have the power, not the retailer. But perhaps this is asking too much of the Canadian consumer. After all, why should he/she actually think about a purchase.

Cosnumers should first of all determine if they really need the product in question right now. Then they should determine what a fair price is. Next, see if the product can be obtained elsewhere (

I haven't seen any drop yet.

Regarding NAFTA, it seems to me that North America should adopt one currency to avoid all the price differentials and to make sure that NAFTA is honoured.

Apparently the only country NAFTA was supposed to benefit was the United States.

I've only heard of several book stores here and there offering their books at he US price insted of the listed Canadian price.

Oh and one major furniture store here in Ottawa lowered their price recently.

I have been recently negioating a purchase of a new car in the US. I was told last week that US dealers are no longer allowed to sell to Canadians, it was a Toyota product.

Why the HUGE difference in price,Factoring in my flight and drive home I would save 4000 dollars on a Camry.

Either Toyota International is ripping of our local dealers or the local dealers are ripping us off.

The only way to correct this is to educate the buying public.I am no expert on international law but isn't this a slap in the face to the NAFTA Agreement

How's Jim Flahery going to "press" the retailers? By asking nicely?

Thank you Wal-Mart for taking the initiative on keeping the shopping in Canada, I guess anything that would take further business away from the little guys and you're all over it, eh?

I would like to buy a car for the same "price" as Americans AND still have a warranty. I no longer want to see a $10 gap between book prices. I don't want to pay a full dollar more on my daily Grande Americano at Starbucks. And the $100 price difference with iPods is really irritating.

I really think there should be a disclosure of the rising gross margins of retailers against the rising dollar. How about a study on that? Rather than the we-already-knew-that studies as of late.

I have not found any decrease in listed prices but a negotiated price is far easier to get.

I would assume that those retailers who have quick turnover of merchandise or those that have the bulk purchasing power to squeeze their suppliers may adjust to the new prices quickly.

What about those smaller businesses that have large inventory of goods purchased in the weak Canadian dollar days? Can they afford to take the financial crunch by cutting their profit margin?

But as more and more Canadians head South or use the Internet for shopping, perhaps the old adage will apply:

“Better a small profit on a sold item than no profit on an unsold item”.