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View Full Version : Canadian $ Vs American $ ?


hornet
09-28-2007, 03:52 PM
Im not understanding why were still paying can usa prices on books and cards. Are canadian dollar is worth more. I think it should be changed along with are currency. Who stands to gain for this gap in the value of are dollar?

dan j
09-28-2007, 04:03 PM
It's not just the dollar that determines the price but the market. Also, most things you see on the shelves at stores were not bought at today's currency values. It takes time for that to filter down to the consumer level. That said, don't expect to see any big reductions in prices.

hornet
09-28-2007, 04:18 PM
But they can change the US exchange within in a day. ull pay the difference with a push of a button on a cash register. So basically they cant create a button function to change the price we pay on books, cards and what ever esle. Heres an example, A couple of years ago, if i bought american money. Bought something at the irving do the street. There would be a % on the us dollar higher then the canadian. But that % was never the same and if i went back to that irving or store the next week they would have a different %. So i guess What IM SAYING IS US AS CANADIAN ARE GETTING RIPPED OFF AND WERE NOT DOIN A DAME THING ABOUT! Whos benefiting from this?

jdcb
09-28-2007, 04:34 PM
Not only that, but most economists don't expect it to stay this way. Businesses will wait to see what happens to the dollar in the long/med term before that effect disappears.

dan j
09-28-2007, 05:00 PM
Hornet, I don't know what you are talking about.

You're probably better off reading some financial articles on various news sites around the web to understand the issue. It is multifaceted.

hornet
09-28-2007, 06:06 PM
Dan J its my opinion that if they have a button for currency exchange that it should be used it in all areas of purchuses but instead once again the bigger guys win. im guessing ur on of the bigger guys that owns a company?

girdy
09-28-2007, 08:03 PM
The prices are manufacturer suggested retail prices, the retailer can charge whatever they want. But generally when things were printed, they were intended to reflect that a Canadian company buying a book in the US, paying US dollars for it, and then customs to import it, would have to charge more Canadian money in order to make the same profit.

I'll use an example with fishing lures. Say I imported some lures in October 2005, and lets say I paid $1.00 U.S. for each lure. I paid in U.S. dollars. The currency rate was $1.18 Cdn = 1 U.S.. I then paid 6.5% duty, so $1.18 plus 6.5% duty is $1.25. Someone in the U.S. purchasing the lures paid $1.00 U.S., I paid $1.25 Canadian. In order to make 100% markup, the retailer in the U.S. would charge $2.00 U.S., I'd have to charge $2.50 Canadian.

So 2 years later, and the Canadian Dollar is now at par with the U.S. dollar. That doesn't change how much I paid for the lure I bought 2 years ago and is still in inventory. It still cost me $1.25, and if I'm going to make 100% markup, I've still got to sell it for $2.50.

Today if I bought the same lure, I'd still pay $1 U.S. which is even, but then I'd pay 6.5% duty, so I've still paid $1.07 Cdn. for the lure. My cost to make 100% markup has dropped to $2.14, but it's still more expensive than the U.S. guy.

I'm sure some folks still have old inventory from when the Canadian Dollar was even further below U.S., and the fact that the Canadian Dollar has reach par doesn't change what they paid for their inventory.

Over time, the prices will converge much closer, but inventory needs to be sold, and duty needs to be taken into effect. That will take some time though. For example, all the fall stuff in the stores was ordered 6-9 months ago at much higher currency rate, and that the Cdn dollar just rose doesn't change how much the retailers paid for the products.

dan j
09-28-2007, 08:23 PM
Dan J its my opinion that if they have a button for currency exchange that it should be used it in all areas of purchuses but instead once again the bigger guys win. im guessing ur on of the bigger guys that owns a company?

yes, i just got done taking a swim in my vault of money.

dan j
09-28-2007, 08:25 PM
girdy.

thank you for taking the time to post what you did. you didn't have to but you did. i appreciate that. it's people like you that make it worthwhile to keep coming back here.

girdy
09-28-2007, 08:34 PM
Thanks Dan, my pleasure!

hornet
09-28-2007, 08:43 PM
ok u got me on that one you guys. but do u know that we only export gas we dont import. but are gas prices are higher then Americans But we export to them as its the same as we export wood. Oh and if i walk across the border and buy so canadian cigerettes or booze it would be cheaper. so all im saying here is some things got to change.

MichelleM
09-28-2007, 08:45 PM
we have higher and different taxes then they do.

sanstu
09-28-2007, 08:55 PM
yes, i just got done taking a swim in my vault of money.

So it is true... you own A....t! (figured if I did it in code it would stay);) :rofl: What type of PFD (personal floatation device) does one use in a money vault, (safety first) and, did you purchase it state side?

girdy
09-28-2007, 08:58 PM
ok u got me on that one you guys. but do u know that we only export gas we dont import. but are gas prices are higher then Americans But we export to them as its the same as we export wood. Oh and if i walk across the border and buy so canadian cigerettes or booze it would be cheaper. so all im saying here is some things got to change.

This'll make you queezy.

U.S. taxes in a U.S. gallon of gas, 46.9 cents. (source http://www.api.org/policy/tax/stateexcise/upload/July_2007_gasoline_and_diesel_summary_pages.pdf)

Canada taxes in a litre of gas, 32.7 cents. (source http://www.petro-canada.ca/en/media/296.aspx)

1 U.S. gallon is 3.79 liters.

So if you base it on cost per liter:

U.S. taxes in a litre of gas is 46.9/3.79 = 12.4 cents.

Canada taxes in a litre of gas is 32.7 cents.

I don't know how much gas is in Calais right now, but I'm guessing 20 cents a litre cheaper.

girdy
09-28-2007, 09:03 PM
Oh, the Canadian Government announced a $14 billion dollar surplus for last year.

Oh, the New Brunswick government announced a $237 million dollar surplus for last year.

Is it any friggin wonder?

MichelleM
09-28-2007, 09:12 PM
we were there last Saturday and gas in Calais was 80cents and gas in Bangor was 70cents.

hornet
09-28-2007, 09:23 PM
yeah were Tax to death lol.But hey i guess thats why we have better health care but im not goin to touch that. Wow Gridy you really did your research lol. i guess i should have done some to before i opened my mouth lol.

The_Dave
09-28-2007, 09:24 PM
It's not just the dollar that determines the price but the market. Also, most things you see on the shelves at stores were not bought at today's currency values. It takes time for that to filter down to the consumer level. That said, don't expect to see any big reductions in prices.

Have to agree with you on ths one.

The_Dave
09-28-2007, 09:26 PM
But they can change the US exchange within in a day. ull pay the difference with a push of a button on a cash register. So basically they cant create a button function to change the price we pay on books, cards and what ever esle. Heres an example, A couple of years ago, if i bought american money. Bought something at the irving do the street. There would be a % on the us dollar higher then the canadian. But that % was never the same and if i went back to that irving or store the next week they would have a different %. So i guess What IM SAYING IS US AS CANADIAN ARE GETTING RIPPED OFF AND WERE NOT DOIN A DAME THING ABOUT! Whos benefiting from this?

If our dollar goes higher than the US dollar, when you go to the States is when you get that % difference you are talking about.

hornet
09-28-2007, 09:28 PM
basically just bring your shopping bags over to the state side.lol

The_Dave
09-28-2007, 09:29 PM
yes, i just got done taking a swim in my vault of money.


Be careful in the deep in, that is where all the hundreds float.

hornet
09-28-2007, 09:42 PM
U.S suffered a 14.5 billion dollar lost. So we again are goin to rise in the food chain

sanstu
09-28-2007, 09:48 PM
U.S suffered a 14.5 billion dollar lost. So we again are goin to rise in the food chain

Huh? Just an FYI, it is not a good thing for the Canadian Economy to have the dollar on par or, God forbid, higher then the US..

girdy
09-28-2007, 09:57 PM
Huh? Just an FYI, it is not a good thing for the Canadian Economy to have the dollar on par or, God forbid, higher then the US..

The bottom will stop dropping out of it soon - thanks goodness they have term limits for the White House so they can't make the mistake of re-electing Bush again. Just what were they thinking?

sanstu
09-28-2007, 10:50 PM
The bottom will stop dropping out of it soon - thanks goodness they have term limits for the White House so they can't make the mistake of re-electing Bush again. Just what were they thinking?

It can't happen soon enough! As to what were they thinking during the last election, I will borrow from former President Clinton, "I didn't inhale"!:rolleyes: (and people around the world believed) hahahahahah

The_Dave
09-29-2007, 09:02 AM
Huh? Just an FYI, it is not a good thing for the Canadian Economy to have the dollar on par or, God forbid, higher then the US..

To a certain degree this is true. It just depends on your business, for some it is good, for some it is bad. Same as when the dollar is low.

dan j
09-29-2007, 10:52 PM
In the meantime, I will be doing well on my vacation in November. When I first went to Mexico several years ago my dollar was worth 6-6.5 Pesos. Today, it is close to 11 Pesos. Inflation in Mexico is relatively high but nowhere near the increase in the dollar. For me, that means a cheaper vacation since I don't do the all-inclusive thing and travel on my own as soon as I touch down in Mexico City.

Sometimes the money vault isn't as good as the warm Pacific Ocean.

hornet
09-29-2007, 11:20 PM
yeah the americans dollar goe down and we have lots of oil but no army lol not good

The_Dave
09-30-2007, 10:59 AM
yeah the americans dollar goe down and we have lots of oil but no army lol not good

Before this gets to be taken out of contrast, let me say for you, if you don't mind.

I believe we have a great armed forces. What we do not have is the proper equipment for them to perform their jobs functionally and safely.

I believe this is what you meant. I don't think you were shooting down our Men and Women who are in the forces.

baseball 23
09-30-2007, 12:39 PM
check out a couple of car sites like
honda.com vs honda.ca
ford.com vs ford.ca
hyundaicanada.com vs hyundaiusa.com

The price difference for the same make and model will astound you!

Bill
09-30-2007, 02:49 PM
check out a couple of car sites like
honda.com vs honda.ca
ford.com vs ford.ca
hyundaicanada.com vs hyundaiusa.com

The price difference for the same make and model will astound you!

I supposed the price differences have to do with hidden taxes, differences in ridicules UAW pay scales (if build in Canada) differences in shipping and the fact they can gouge more out of us and get away with it......

The one I could never understand was why "they" got 100,000 miles and we only get 100,000 km that’s a 60,000 bonus for them........ I have noticed this somewhat different lately but

Bill