Canadian dollar worth more than US dollar (1 Viewer)

[Jeff Ulmer]

In Canada, the exchange rate is fairly well known and talked about, but I wonder if most Americans are even aware of this situation, with their dollar weakening significantly against other world currencies? I remember back when I was a little kid going to the US and the Canadian dollar was worth $1.10US, but for the last 30 or more years that hasn't been the case, and for a while a US dollar would cost over $1.40CDN. Today, the Canadian dollar is worth just over the US dollar, yet looking at pricing up here, in most cases there is still a huge discrepancy compared to the US. While I would greatly prefer to support the Canadian economy I can't support gouging, and would hope that Canadians are prudent enough to look south of the border for their purchases to put pressure on the Canadian market place to adjust pricing.

 

[Francois Caron]

The problem is that the Canadian merchants bought most of their merchandise when the Canadian dollar was worth much less, hence the difference. But in my opinion, that's THEIR problem, not yours. If you feel you're being gouged, order from the States. I do it often especially with shipping costs becoming more and more reasonable. I've ordered the latest Samsung ATSC receiver from a New York merchant (not available in Canada) and not only was their price just as competitive as other sites, they also shipped it to Canada overnight for only $30!

Whenever any individual or company complains that "we can't compete with bla bla bla because of bla bla bla", as soon as they say "WE CAN'T COMPETE", I stop listening to the rest of their statement. If you can't compete with the current economic realities, why are you in business in the first place?

 

[Jason Seaver]

I've certainly noticed the difference on my annual trip to Montreal for Fantasia the past couple years; the combination of the strong exchange rate and the higher sales taxes have made it a more expensive proposition.

 

[Holadem]

This sucks -- I owe my sister in Ottawa a couple of hundred bucks (canadian) .

--
H

 

[Jeff Ulmer]

The problem isn't just with inventories being bought at a higher exchange rate - the spread has been under 15% for a year or more, yet pricing is often 20-40% higher, even on NEW products (look at upcoming DVD pricing from Fox for example).

It still baffles me how I can mail 5lbs worth of books in the US for under $10, yet it would cost over $60 in Canada - faster service, but only because there are no other options.

 

[DaveF]

It's amazing. When I started grad school, the joke was about visiting Canada almost being free, the exchange rate so favorable. Something like $0.66 US to $1 CA. This summer I took a vacation to Toronto and the rate was about $0.90. Two months later we're at, or past, parity. So Canada's no longer a cheap date, for those of us near the border.

 

[Kevin Hewell]

Maybe now TV shows and movies that are set in the US will actually film here instead of Canada since they don't have the favorable exchange rates to help them save money.

 

[Nick]

I remember my trip to Montreal two years ago. The exchange rate was about $1.00 US = 1.25 CAN but the stuff that we bought there let say if it's $1 in us and we would pay like $1.20 something in Montreal. so, it kind of balances out in the end. Like CDs I said I would never pay that price in US but if you figure it out it's almost the same price in US dollar. Now if the the currency value is almost the same then it's not cheap in CAN anymore and why bother exchange US to CAN anymore. Just use US dollars there to avoid exchange fee.

 

[Todd K]

I certainly feel bad for Canadians having to buy books -- was just looking at one of my new hardcovers yesterday. The jacket cover price: $24.95 US, $30.00 Canadian!

 

[Jeff Ulmer]

I'm not looking for some of the older rates. Buying stuff - especially big ticket items - with a 40% premium for the exchange plus another 14% in tax wasn't much fun.

As for spending US dollars in Canada, you will still get nailed with a 2-5% discrepancy in value as many businesses do not operate a US bank account and will lose that exchanging it to Canadian, even if the dollar is at par, as with any currency exchange.

 

[Carlo_M]

Back in 2003/4 I was part of a data migration team and one thing I had to help input was currency conversion codes. For the Euro, back in late 2003, it was something like .80 (meaning 1 euro = .80 USD). Now the currency rate for it, four years later is like 1.41. Man I should have bought like 100,000 euros in 2003!

 

[Dennis Nicholls]

You guys made me look....

How odd. The most recent books I've purchased no longer have that "US $X / CAN $Y" printed on them. All they have is the ISBN # and the UPC code.

The most recent book I've bought that has the pricing is "Our Oldest Enemy: A History Of America's Disasterous Relationship with France", from 2004. It lists US $24.95 / $37.95 CAN.

This new exchange rate for the US dollar is really loonie.

 

[Marc Colella]

Canadian retailers better start making the proper adjustments in their pricing, because when the CAD dollar was at .90 or lower - most people didn't really calculate how much we were being gouged. Now that it's even, people are going to expect even pricing.

I don't buy the "old inventory" excuse since when the CAD drops, retailers had no problems increasing the price of items immediately. There are new products released today that are still priced too high - the new line of Apple iPods are priced $30-$50 higher than they should be. Why is this?

The CAD didn't increase 30 cents overnight - it's been increasing for quite a while now, but retailers were still gouging all along the way.

I always prefer to purchase from Canada so I can support my country, but I won't be gouged and will take my business to the US if I have to.

 

[Dennis Nicholls]

Costco this week wants $16US for a case of Kokanee. I wonder if the price is going to go up now?

(Note to Oz members: 1 US "case" = 1 AUS "slab" of beer, i.e. 24 bottles or cans.)

 

[Jeff Ulmer]

A case of Canadian beer in BC is over $20 before deposit, has been forever. A six pack is $11+.

Fast food pricing is also way higher than in the US. I can still remember ads for a MacDonald's meal under $5 (there were dinosaurs then), now that barely buys you a burger. Odd considering we have far more sawdust to produce them...

 

[Dennis Nicholls]

That's just crazy.... $16 US at the Boise ID Costco, or > $20 CAN up in BC where it's made.

Has the Canadian government slipped in a VAT on you guys without telling anyone?

 

[Jeff Ulmer]

We pay 13% tax on top of that! Not only is the beer made in BC, the breweries are in the same city - it's not like they are adding shipping costs.

 

[Francois Caron]

I had a pleasant surprise today. I went to a local music store here in Montreal to purchase a shotgun microphone for my camcorder, and the price was exactly the same as on Amazon in the US. The clerk was very aware of the exchange rate situation and agreed that the store had to live with this reality and that other merchants will have to do the same.

 

[Dennis Nicholls]

Jeff, we pay 6% sales tax too. Back in San Jose Calif. sales tax was 8.25%.

 

[Dennis Nicholls]

OK Jeff, I just dropped by Costco today....

....they LOWERED the price of a case (24 bottles) of Kokanee to $15.49 US. Why are you Canucks subsidizing Idaho beer drinkers? Someone needs to give you guys lessons in price gouging.