Canada-U.S. price differences to be studied

[alp227]

Source: CBC News

If you're frustrated with paying more than Americans for the same products, take heart: the Senate Finance Committee is looking into it.

Finance Minister Jim Flaherty said the committee has agreed to do a study and report on why products sold in Canada cost more than they do in the U.S., despite near parity in the dollar.

Many products – including books, magazines and clothes – cost less in the U.S. Consumers who dealt with a much lower dollar for years have been voicing frustration over the continued difference.

Heading into a Conservative caucus meeting, Flaherty said he's looking forward to the study. Earlier this week, it was revealed he'd sent a letter to the committee asking them to look into the matter.

Read more: http://www.cbc.ca/news/canada/story/2011/09/08/pol-canada-us-price-differences.html

[harmonicon]

1. Curious.

The relative value of currencies fluctuates. I could well ask why things in Europe cost so much since the dollar has plummeted in value. I mean, a pack of cigarettes cost the same in Euros when the Euro was worth 90 cents as when the Euro was worth $1.50. So, basically this seems silly to me.

[strategery blunder]

2. Sticky prices.

http://en.wikipedia.org/wiki/Sticky_%28economics%29

Lots of products are priced well in advance of the time they are sold. It's not difficult to imagine magazine publishers, for example, setting their subscription prices back when 1 CAD was worth 80 US cents and then simply failing to update the price when the value of the loonie went up. Retail prices won't be nearly as sensitive to currency fluctuation compared to the forex markets.

If Canadians want the value of their currency reflected in prices for imports, the solution isn't "voicing frustration," it's refusing to buy the overpriced imports in question to apply pressure on the price to come down, in line with the value of their currency.

[Fool Count]

3. They'll just say it costs more to market and deliver goods to a smaller

and more remote market like Canada. That's how all such enquiries end in Australia, where everything is much more expensive
in spite of the local dollar costing $1.06 USD. Even software, music, games and e-books bought online, where delivery costs
couldn't possibly be any higher, are much more expensive. They always say it is a smaller market with higher costs per sale.
What bull. The true reason is Australians are in general richer and their wealth is more evenly distributed than in the US,
so more money per head could be screwed out of them.

[Badsam]

4. Try shipping something to Canada and your questions will be answered

They call them landed costs and they aren't cheap.

[glinda]

5. Leave my husband's prescriptions alone!!!!!!!!!!!!!!!!!!!!