What will you buy?

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StraitTalk
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What will you buy?

Post by StraitTalk »

For those who don't mind sharing. What will you buy from across the border now that the loonie is so high?

I've already ordered this. (If it asks you to change your locale to US, just click yes or you won't see it.)

Perfect timing, as this just came out. Probably a good time to buy a car for lots of people.
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Jupitergal
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Re: What will you buy?

Post by Jupitergal »

Depending on what they will charge Canucks for an iPad, I might order mine from the states. That also depends on shipping, however.

Or if I even get one. :D
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Captain Awesome
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Re: What will you buy?

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I usually buy truck parts. They're insanely cheap in US when you compare them to NAPA or local dealer. I'm all about supporting locals but not when it cost me triple what US charges.
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StraitTalk
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Re: What will you buy?

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Captain Awesome wrote:I usually buy truck parts. They're insanely cheap in US when you compare them to NAPA or local dealer. I'm all about supporting locals but not when it cost me triple what US charges.


I hear that.
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Fritzthecat
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Re: What will you buy?

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Captain Awesome wrote:I usually buy truck parts. They're insanely cheap in US when you compare them to NAPA or local dealer. I'm all about supporting locals but not when it cost me triple what US charges.

There lies the problem: Why buy local when you can get it cheaper from another source?
It is cheaper and faster *bleep* me to order certain bike parts direct from the UK than it is to buy them from Canadian suppliers.
Who do you think I will buy from? I'd love to keep that money in Canada BUT when it is 1/2 the cost or less.....
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Captain Awesome
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Re: What will you buy?

Post by Captain Awesome »

Fritzthecat wrote:There lies the problem: Why buy local when you can get it cheaper from another source?


Indeed. If it's available here at closer value I'll buy it just for convenience factor. But when the dealer quotes me $200 for something I can get for $56+delivery ($10-15), I have only one choice.
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coffeeFreak
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Re: What will you buy?

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It's kind of hard to support local when "local" owners are gouging us.

The Canadian dollar at par -- will consumers see any benefit?
Weekend Extra; If retailers don't respond to price pressures, more Canadians will head south to shop
By Fiona Anderson, Vancouver Sun; With Files From Canwest News ServiceApril 10, 2010 With the Canadian dollar poised for parity -- and having reached it and bounced back a few times this week -- inquisitive consumers want to know: Will retailers lower their prices to reflect the stronger dollar or will Canadians continue to pay more for books, clothing and cars than their southern neighbours?

The answer depends, not surprisingly, on who you ask.

Bruce Cran, president of the Consumers' Association of Canada, said prices have never gone down in connection with a strong Canadian dollar, not even after it peaked at $1.10 US in the fall of 2007.

"We as consumers have never had any general benefits," Cran said.

Each month, Cran's organization compares the prices of three bundles of goods bought in Canada and the United States. The smallest bundle is made up of books, magazines and greeting cards that can be bought easily in both countries.

There has always been at least a 30-per-cent price differential in this bundle, Cran said. But right now, with the Canadian dollar strong, it's 40 per cent.

The medium-sized bundle, which includes home appliances and televisions (but no electronics), is less accurate because it is hard to find identical items, Cran said. Prices in that bundle fluctuate quite a bit month-to-month, but buying those goods in the U.S. is still usually 15 to 35 per cent cheaper.

And in the largest bundle -- 15 cars and trucks, including some made in Canada -- the difference is between $5,000 and $35,000, which works out to between 20 per cent and almost 40 per cent, Cran said.

While some prices do vary at any given time, Cran has not seen general changes in these percentages as the dollar strengthens.

"The retailers in Canada have been reluctant to pass any of [the gains from the stronger dollar] on to consumers, and they feel that should be added to their profit margin -- which is exactly what's happened," Cran said.

But Mark Startup, president and CEO of Shelfspace, the association for retail entrepreneurs in B.C. and Alberta, says it's naive to think that retailers won't lower prices as the dollar gets stronger.

While the B.C. retail market is relatively small, there is still plenty of competition, and that's going to put downward pressure on prices, Startup said.

"The market will force them to adjust, and in the retail space the consumer is ultimately the driver," he said.

For prices not to fall, 40,000-plus retailers would have to conspire to keep prices up. And that "simply cannot happen," Startup said.

Gregor Smith, an economics professor at Queen's University, said whether retailers drop their prices will depend on two things: How long the Canadian dollar stays strong, and the type of goods being sold.

"If we stay at parity for weeks or months, that makes it more likely importers will pass through the savings to consumers," Smith said.

Because retailers don't change their prices every day.

For fruits and vegetables though, the drop in price could happen quickly because those are re-priced weekly. But for other goods, it will likely take many months, he said.

Brooks Brothers Canada orders its products six months in advance, so normally would only set new prices a few times a year. But given the strong dollar, they've decided to lower prices now, Brian Shaughnessy, the company's country manager for Canada said.

When the retailer opened its two Canadian stores -- one in Toronto and one in Vancouver -- last year, it looked at the average exchange rate over the past five years and decided a 15-to 20-per-cent markup on Canadian prices made sense, Shaughnessy said. Add to that the costs of shipping and import duties, and prices were about 25 per cent higher in Canada.

A lot of Brooks Brothers' customers travel regularly to the U.S. and could choose to buy their clothing there instead of Canada. So, with the dollar strong for quite some time, the Canadian outlets decided to drop prices across the board 15 per cent, with some slightly higher discounts for popular items.

"So there's absolutely no reason to cross-border shop any more," Shaughnessy said.

The threat from cross-border shopping -- especially in cities like Vancouver that are near a border -- may be exactly what pushes local retailers to drop their prices. In 2007 and into 2008, the number of Canadians who made the trek rose dramatically, accordingly to a report by Douglas Porter, deputy chief economist with BMO Capital Markets.

And lineups at the border crossings over the Easter weekend suggest the same is happening now.

"Given the combination of the currency returning to par, and the fact that Canadian consumer confidence has bounced back miraculously in the last year, I think we'll see a real upswing in cross-border shopping," Porter said in a recent interview.

Online shopping poses another threat for Canadian retailers with PayPal Canada saying it is seeing an average 1,200 crossborder transactions per hour -- a number only expected to grow in the coming weeks.

"If you chart the Canadian dollar on a weekly basis relative to the U.S. dollar, you can see a direct correlation in the volume of cross-border transactions that Canadians make," PayPal Canada's general manger Darrell MacMullin said.

And Brooks Brothers is not the only retailer that seems to have noticed.

The Body Shop, for example, is offering customers the same prices they'd pay in the U.S., and Porsche Canada has just introduced a "currency credit" worth between $4,000 and $10,500 depending on the model purchased.

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http://www.vancouversun.com/business/Canadian+dollar+will+consumers+benefit/2786912/story.html
DANSPEED
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Re: What will you buy?

Post by DANSPEED »

I'd buy a notebook computer but I'm not sure if that voids the warranty. I've read horror stories about cross-border shopping for electronics and manufacturers not honoring the warranty because the serial number is US. I guess if it was cheap enough I'd take a chance, warranty or warranty void. I buy cycling parts from the US but I'm finding shipping costs continue to rise.

I can't understand why the same item in Canada is three times higher than in the US. Keeping in mind the US store is making a hefty markup! I asked a local store that question and was told rent, heating, insurance, staff and importing costs are higher in Canada. I'm not in the retail business so I have no way of disputing that.
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Homeownertoo
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Re: What will you buy?

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Captain Awesome wrote:I usually buy truck parts. They're insanely cheap in US when you compare them to NAPA or local dealer.

Very true, and it sheds some light on why Americans retain a higher standard of living despite stagnant income growth. Most things there are significantly cheaper, as the article above notes, and available at discount outlets.
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Bsuds
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Re: What will you buy?

Post by Bsuds »

A lot of the electronics imported from China and other Asian countries have a high duty in the US.
Many are cheaper here in Canada.
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BoB76
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Re: What will you buy?

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I am thinking about a new V8 Camaro or a Shelby. They are WAY less in the U.s.a. and warranty doesn't matter much as I won't put many miles on it.
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hutton
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Re: What will you buy?

Post by hutton »

Might do a trip down, this is what I will look forand compare $$$: Flat screen TV 42+, Webber smoker, xbox???, furniture.
Al Czervic
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Re: What will you buy?

Post by Al Czervic »

I recently bought a vacation property down south where I plan on spending more time in the winter months. Real Estate is still hugely depressed down there and with our exchange rate there are some incredible deals to be had down there.

The place I just purchased would easily cost 2x – 3x just to rebuild alone not including the land costs. Plus I will be right on the Golf Course. This is my way of avoiding the HST – haha ! It is so unfair.
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ImRight
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Re: What will you buy?

Post by ImRight »

Think that's good? Order a sheet load of stuff from China. It actually gets here quicker than the States and 1/2 the price.
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Re: What will you buy?

Post by Liberty and Truth »

Al Czervic wrote:I recently bought a vacation property down south where I plan on spending more time in the winter months. Real Estate is still hugely depressed down there and with our exchange rate there are some incredible deals to be had down there.

The place I just purchased would easily cost 2x – 3x just to rebuild alone not including the land costs. Plus I will be right on the Golf Course. This is my way of avoiding the HST – haha ! It is so unfair.


Where did you buy? Almost everyone I know who is buying in the US is buying in Arizona. Seems to be the place where there was the most overbuilding.

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