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It's about fucking time......senate to investigate huge price differences ....

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Fullthrottle said:
It's all about supply and demand. A company will try and maximize profits whenever possible.
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While that may be true, that doesn't explain the difference in prices from a purely distribution/retail aspect.

Take Best Buy for eg:
They import flat panel tvs from china. In the US they land in LA, in Canada they land at Vancouver. Does the base cost of that TV double because a ship has to travel 300 miles further? Nope.

It used to be explained away that it was the difference in value of the beaverbuck and the Greenback. Back when it was 1.5 you could understand it. But now that we're on par, that blows that excuse out of the water......

Vehicles are a perfect example: Honda's made in Cambridge cost 40% more when purchased in Cambridge than they do in fricken FLORIDA. Same as Ford mini vans when they were made in Oakville. You could buy one cheaper in South Carolina than in O A K V I L L E.
 
Tboy that is great info dude. I'm with Scotiabank and they are worldwide. I didn't know I can access my funds without the high fees through their ABM! Thanks bud!!
 
Carney to testify about Canada-U.S. price differential at Senate committee


OTTAWA - Bank of Canada governor Mark Carney is slated to appear tonight at a Senate committee tonight to discuss why prices are higher in Canada than the United States.The central bank head will testify before the Senate finance committee.The committee is investigating the price-gap between stores in Canada and the U-S now the loonie is trading near parity with the greenback.Earlier, Carney will discuss the current state of the domestic and international financial system before the Senate banking, trade and commerce committee.

The European debt crisis and the weakening U-S and Chinese economies have cut economic growth forecasts around the world.Two weeks ago, Finance Minister Jim Flaherty told the Senate committee that Canadians have every right to be angry about paying more than Americans for the same goods.Flaherty says he's prepared to look at reducing tariffs and to use ``informal persuasive powers'' if needed to bridge the gap.The Retail Council of Canada calls tariffs a major factor in the persistent price gap, saying some duties are as high as 18 per cent.That's because the free trade agreement does not cover all goods traded between Canada and the U-S.Except for a recent dip, the Canadian ​
 
LOL it'd be easy to testify:

Senate Chair:
Mr Carney, why are the retail prices so much higher in Canada than the US?
Carney: because we tax the fuck out of everyone and the corporations here are greedy bastards.
Chair: Why are fuel costs all high and go up at the same time? Is there collusion amongst the retailers?
Carney: No, there is no collusion, the price hikes are just a co-incidence.....

Sorry, if tariffs were the reason then the prices would only be off by 18%, not 100% like it is in many cases. And don't even get me started on the price of books.....

BTW: thanks for the update baron.....
 
Just wanted to note that I was recently visiting the States, and we did go looking for the bargains over there. But it looks like the prices are starting equalize between Canada and the US finally. That is the base prices, not including taxes. With taxes included, then they still beat us by a long way. I was looking to purchase a new laptop, and I decided against getting it in the States because various warranties and extended warranties are not honored between the two countries, even if you get them at the same chain (e.g. Best Buy).

Added:
Just as I wrote the above, looks like there was a story about it today quite coincidently:


They said the cause of the higher prices is due to first higher salaries and then as an afterthought, due to less competition. I think the salaries argument is a strawman, they are paying minimum wage to retail employees most of the time, and they don't have to worry about health insurance in this country. But the less competition aspect is definitely the real reason here. Our governments here like to nurture monopolies. Canadian corporations are like the government's own babies, they need to be protected from the big bad bullies from the outside world, and so they become complacent tit-drinkers.
 
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While yes, incomes are lower in the US in many positions, (I say many because there are a lot that are actually higher or the same as here) but that is kind of a catch 22. Prices are lower in the US so the buying power remains equal in both countries).

I worked a LOT in the US and the guys I was supervising were making $45.00 an hour and I was making $25.00. This was back when the US was 1.5 Canadian too. I remember 2 complaining that they had to work a sunday night. I said to them: how much are you making per hour at time and a half? $67 or so? Yeah......I said "now ask me how much I'M making" so they did...I answered "ZERO" because I'm salaried and don't get paid for weekend work....so really, shut the hell up ok? LOL they certainly shut the hell up lol......

About laptops etc. Yes, there ARE certain things that are now on par pricewise with us. Technology is one of them. There was a time (when I was travelling in the US for work) that a basic laptop was half the price of ones up here. (this was back when you could only buy brand names like Toshiba, IBM, Compaq etc).

A good example is plasma screens. We bought 2 from a company up here and got a steal at $13,000.00 each for 40" sd resolution. In the US at the time, you could get a 42" HD for $4000.00. I said it was a "steal" because the going rate was $18,000.00 for those screens. (we bought 4 37" toshibas for a customer and they were $27,000 each here, $14,000.00 there but we HAD to buy them here even though the exhibit was going to the US because the exhibit was coming back here, and we didn't want to have the exhibit seized or held up at the border....)
 
We can't do much about our taxes up here, obviously, but I really would appreciate if we were charged the same base prices as Americans. Electronics and foods are starting to show signs of equalizing at the base price levels, but that's because those products are very volatile in pricing. So when you're used to seeing big price differences on certain products, they can equalize quickly. But other things that don't have huge price volatility, like towels, bedspreads, even some clothing, you still see the differences between here and there.
 
blackram said:
We can't do much about our taxes up here, obviously, but I really would appreciate if we were charged the same base prices as Americans. Electronics and foods are starting to show signs of equalizing at the base price levels, but that's because those products are very volatile in pricing. So when you're used to seeing big price differences on certain products, they can equalize quickly. But other things that don't have huge price volatility, like towels, bedspreads, even some clothing, you still see the differences between here and there.
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and don't forget commodities like gasoline and higher priced items like vehicles. I mean, we SELL OUT gas to the states, and they charge less per litre than we do. How does ThAT happen? They buy it from us, mark it up and STILL charge less for it than we do?

Same as vehicles. A vehicle is made here in Canada, from Canadian parts (and various others), by Canadian Men and Women, then shipped from here to the southern US, and it's STILL sold for $10,000.00 less......that one makes me scratch my head over.....never mind the freight. Ship a car from Oakville to Scarborough. Freight is $395. Ship a car from Oakville to Miami beach, freight is $375.........

I guess the people who make the daylight running lights module make it out of pure platinum with diamonds and rubies and that metric speedo, that's gotten be diamond encrusted and made by cartier.......oh, let's not forget the french labels. Those have to be printed on antique vellum and painted by DaVinci....they'd have to be to justify the $10,000.00 price difference.....
 
I think the car prices are starting to equalize a bit too, other than taxes. Every new model year brings new prices to the vehicles. But it does demonstrate the difference in equalization between volatile priced products (electronics, food) and stable price products, cars being a big example of a stable priced product.

As for gasoline, those will never be equalized because the taxes are built right into the price on both sides of the border. In a tax war, we'll never win out.
 
Here's an update to this old thread. According to the latest survey, the Canadian prices are still 14% higher than US, not including taxes. In June, the govt is going to raise the duty-free allowances for Canadians shopping across the border in the US. I hope this sends a message to the retailers about keeping their prices down.
 
I don't believe it's the retailers as much as it's the suppliers. Retailers work on a margin, it's the suppliers and manufactures charging Canadian Retailers more. The price of oil on the market has dropped why has it not a the pump hmmmm, gouging it's summer time.
 
Dan said:
I don't believe it's the retailers as much as it's the suppliers. Retailers work on a margin, it's the suppliers and manufactures charging Canadian Retailers more. The price of oil on the market has dropped why has it not a the pump hmmmm, gouging it's summer time.
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Don't ignore the fact that the higher prices are on everything the more the government collects in taxes.

You have to feed the monkey, and it gets bigger by the day.
 
Jesus Quintana said:
Don't ignore the fact that the higher prices are on everything the more the government collects in taxes.

You have to feed the monkey, and it gets bigger by the day.
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feed the monkey lol good analogy....and yeah, that's why they won't do anything about gas prices....the higher the per litre price, the more taxes they reap....

i keep hearing about how they are trying to cut spending and reduce the deficit, the ONLY thing they are talking about is cutting services and jobs....they not once say anything about cutting the insane pensions elected officials get or the insane bonus packages.......

you know, i've been thinking about writing a.....list of demands?....and putting it out there......you know, things like breaking up the hydro one monopoly, reducing pensions and making eligibility on par with the private sector (age plus years of service), limiting profit margins, flat tax for all, limiting the amount you can will to your kids, making a rule that if a politician promises something during his election campaign, they have 6 months to make good on it, otherwise they are forced to step down..... etc.......you know, common sense changes lol....
 
Dan said:
I don't believe it's the retailers as much as it's the suppliers. Retailers work on a margin, it's the suppliers and manufactures charging Canadian Retailers more. The price of oil on the market has dropped why has it not a the pump hmmmm, gouging it's summer time.
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Well, actually the price of gas has come down over the past week, in my town. Whether it was a significant enough drop is left upto you to decide.

As for the suppliers not the retailers: then it's upto the retailers to find more competitive bids from the suppliers. Companies like Walmart and Target are specifically coming to this country to get higher prices for their products; we pay more in the Canadian branches of these companies than they do in the States. That tells you something.
 
Ask Mike Harris how popular "Common Sense" is.

They can't claw back on the salaries that Civil Servants are paid because the unions are too vocal. They used to say that "in the private sector" those guys would make twice as much, now they just say that they pay the same as the private sector (Ignoring the gold plated pensions etc..) Cutting staff reduced the long term liabilities, but really what are the services that they are threatening to cut? And especially in the West why should they have to have higher taxes because students in Quebec want cheap education and $7 per day child care????
 
tboy said:
feed the monkey lol good analogy....and yeah, that's why they won't do anything about gas prices....the higher the per litre price, the more taxes they reap....

i keep hearing about how they are trying to cut spending and reduce the deficit, the ONLY thing they are talking about is cutting services and jobs....they not once say anything about cutting the insane pensions elected officials get or the insane bonus packages.......

you know, i've been thinking about writing a.....list of demands?....and putting it out there......you know, things like breaking up the hydro one monopoly, reducing pensions and making eligibility on par with the private sector (age plus years of service), limiting profit margins, flat tax for all, limiting the amount you can will to your kids, making a rule that if a politician promises something during his election campaign, they have 6 months to make good on it, otherwise they are forced to step down..... etc.......you know, common sense changes lol....
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I like your demands except limiting what one can will their family. The money left over in an estate is after tax earnings. It should be the will of the deceased where the funds go regardless of their choice and should not be taxed one red cent. It was heavily taxed during the individuals existence and it should end at death.
 
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