Then tell me why the same package of underwear is 1/2 the price at an american WalMart vs. a local one.
Toronto Star: Why Canadians pay more for everything compared to Americans
- Thread starter alexmst
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I believe onthebottom is correct when he states that it doesn't make much sense to compare Canadian versus US prices. One of the most important factors to take into consideration is the size of the market. With the US having a much larger population, and thus a much larger market, economies of scale will tend to have a downward pressure on prices.
Another important factor that needs to be kept in mind is that Canada doesn't just have a relatively small population relative to the US, but it also has a population that is more dispersed along a narrow strip in the southernmost regions of the country. This would mean that products that are imported will face higher costs in terms of shipping these products to potential consumers, and these costs tend to be passed on to the consumers.
What would really be interesting would be to compare prices of goods in Canada to other nations with comparable population size and/or geography. For example, how are prices for consumer goods in, say, Australia (a nation with a relatively small, sparse population and large geography) to Canada? Or how about prices in the UK versus Canada?
Another important factor that needs to be kept in mind is that Canada doesn't just have a relatively small population relative to the US, but it also has a population that is more dispersed along a narrow strip in the southernmost regions of the country. This would mean that products that are imported will face higher costs in terms of shipping these products to potential consumers, and these costs tend to be passed on to the consumers.
What would really be interesting would be to compare prices of goods in Canada to other nations with comparable population size and/or geography. For example, how are prices for consumer goods in, say, Australia (a nation with a relatively small, sparse population and large geography) to Canada? Or how about prices in the UK versus Canada?
I think both the efficiency of the market and competitiveness of the market are the key... remember, cost doesn't have anything to do with price....
OTB
so Buddy calls my office offering to buy the piece of electronics that I import and distribute to retailers, although it is more expensive than the same item on a list-for-sale used goods forum from the States. All I have to do is match the price. What a great idea!!! But wait!!! he called the distributor (me) , as he is perfectly happy to cut out my retailers.
The fact is that my product is a) new with full warranty, b) legitimately imported from country of origin with the accompanying duties (6.5%), exchange rates, brokerage, and I have to pay insurance, freight (both in and out) c) commissions, d) time value of money as I pay for the goods on site and have to wait 4-5 weeks for the damn stuff to hit the border.
And the sad truth is that we have a small market, obviously without the revenue streams that the US market has, which results in inequities on price. And yes, you can use your wallet in Buffalo to punish Canadian retailers for what you believe is price-gouging. The end result is that Canadian retailers will continue to be supplanted by American chains, and their profits on operations do not stay here, they are transfered back to the US and the shareholders.
So would I price-match a second hand box from the States?... I think not.
The fact is that my product is a) new with full warranty, b) legitimately imported from country of origin with the accompanying duties (6.5%), exchange rates, brokerage, and I have to pay insurance, freight (both in and out) c) commissions, d) time value of money as I pay for the goods on site and have to wait 4-5 weeks for the damn stuff to hit the border.
And the sad truth is that we have a small market, obviously without the revenue streams that the US market has, which results in inequities on price. And yes, you can use your wallet in Buffalo to punish Canadian retailers for what you believe is price-gouging. The end result is that Canadian retailers will continue to be supplanted by American chains, and their profits on operations do not stay here, they are transfered back to the US and the shareholders.
So would I price-match a second hand box from the States?... I think not.
Without reading this entire thread...but don't many Americans make less money? For example I believe their minium wage is much lower and things of that nature. You take someone working at a home depot in the U.S compared to someone working at home depot in Canada and I think the Canadian makes more. Correct me if I'm wrong.
Anyway, if I'm right, the point I was trying to make is it balances each other out somewhat.
Anyway, if I'm right, the point I was trying to make is it balances each other out somewhat.
Well, that's also the inflationary effect of raising the minimum wage. It's one of the free market arguments against having a minimum wage in the first place: that all you're doing is creating an inflation of the dollar amount people make and spend without actually creating real wealth.black booty lover said:
Quite right, same with the taxes argument: higher tax rate, better infrastructure and so on.
