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New duty-free limits will challenge Canadian re

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New duty-free limits will challenge Canadian retailers


Business | 207045 hits | Jun 01 9:08 pm | Posted by: Strutz
12 Comment

Cross-border shoppers may welcome increased duty-free limits that kick in Friday, but those changes will magnify problems Canadian retailers are having with the noticeable price gaps between Canada and the U.S.

Comments

  1. by avatar RUEZ
    Sat Jun 02, 2012 7:14 am
    I guess Canadian retailers will adapt or die.

  2. by avatar 2Cdo
    Sat Jun 02, 2012 10:58 pm
    Maybe Canadian retailers can charge a fair price instead of the 20-50% more for the exact same product!

  3. by avatar PluggyRug
    Sun Jun 03, 2012 12:48 am
    "2Cdo" said
    Maybe Canadian retailers can charge a fair price instead of the 20-50% more for the exact same product!



    Yup. I ordered 2 LiPo batteries from Hong Kong, cost $28 + $8 shipping, total $36.00

    LiPo's from Canadian retailer (same make and size) $42 EACH + $19 shipping, total $101.00. 8O

  4. by OnTheIce
    Sun Jun 03, 2012 2:28 am
    "2Cdo" said
    Maybe Canadian retailers can charge a fair price instead of the 20-50% more for the exact same product!


    There's way more to the story than that.

    Canadian prices are higher because we pay higher fees to import tariffs on goods, fees mandated by the government.

    At any rate, retailers in Canada are exaggerating as this isn't going to affect that much as it's not like people are going to be flocking over the border only to shell out money for a hotel to save a few bucks.

    The money spent on the hotel will negate any savings.

  5. by avatar BeaverFever
    Sun Jun 03, 2012 3:25 am
    "OnTheIce" said
    Maybe Canadian retailers can charge a fair price instead of the 20-50% more for the exact same product!


    There's way more to the story than that.

    Canadian prices are higher because we pay higher fees to import tariffs on goods, fees mandated by the government.

    At any rate, retailers in Canada are exaggerating as this isn't going to affect that much as it's not like people are going to be flocking over the border only to shell out money for a hotel to save a few bucks.

    The money spent on the hotel will negate any savings.

    Wasnt that the point of NAFTA in the first place? Are there still tariffs on US general merchandise?

  6. by OnTheIce
    Sun Jun 03, 2012 12:36 pm
    "BeaverFever" said
    Maybe Canadian retailers can charge a fair price instead of the 20-50% more for the exact same product!


    There's way more to the story than that.

    Canadian prices are higher because we pay higher fees to import tariffs on goods, fees mandated by the government.

    At any rate, retailers in Canada are exaggerating as this isn't going to affect that much as it's not like people are going to be flocking over the border only to shell out money for a hotel to save a few bucks.

    The money spent on the hotel will negate any savings.

    Wasnt that the point of NAFTA in the first place? Are there still tariffs on US general merchandise?

    Perhaps, but we aren't importing a ton of goods for retail markets that are from the US. A lot of the things Canadians go and buy in the US (clothes and electronics) are from China.

    When US retailers are able to import goods and pay less for them, they charge less to the customer. Add to that the often lower sales tax and you have much better pricing.

  7. by avatar EyeBrock
    Sun Jun 03, 2012 5:23 pm
    I have bought 90% of my camera gear in the US. The lenses are made in Japan and the tripods in Italy.
    One tripod alone was $500 with taxes in the US, the same item at Henry's was $1100.

    It's pretty much the same on Canon lenses. Camera bodies are too close to bother with though. I've noticed that clothes in the Bay or Gap etc are pretty much the same price now though. You can still get deals in the US and until Canadian retailers match US prices I will continue to buy in the US.

  8. by avatar Unsound
    Sun Jun 03, 2012 8:41 pm
    This is the downside of living in Edmonton. No way is it worth it to drive to the states just for shopping, and the amount of stuff you can get back when you're flying is hardly worth it either. And that's without counting the cost of flights.

  9. by avatar Strutz
    Mon Jun 04, 2012 4:29 am
    I find it sad.

    I know a few people who do alot of shopping in the US. Not worth all the hassle as far as I'm concerned. Fine, I'm paying more but I'd rather spend my money in my own country. Not to sound anti-US or anything, just the way I feel about it.

    I haven't even travelled across the border (just haven't had any reason to) in more than 10 years though I live less than a couple of hours away.

  10. by avatar bootlegga
    Mon Jun 04, 2012 3:02 pm
    "EyeBrock" said
    I have bought 90% of my camera gear in the US. The lenses are made in Japan and the tripods in Italy.
    One tripod alone was $500 with taxes in the US, the same item at Henry's was $1100.

    It's pretty much the same on Canon lenses. Camera bodies are too close to bother with though. I've noticed that clothes in the Bay or Gap etc are pretty much the same price now though. You can still get deals in the US and until Canadian retailers match US prices I will continue to buy in the US.


    When I went last year to California, baby clothes were substantially less - close to 40% in some cases. We saw the same clothes in Children's Place up here for $15-20 while it was closer to $10 in California.

    Of course, as Unsound notes, those who live in Edmonton can't really take part in the whole cross-border shopping thing - the closest major cities are simply too far by car (Seattle is 18 hours away, Salt Lake is a bit closer) unless you're going on a vacation. And flying wipes out any savings.

    Still, it is nice when you travel to come home with a suitcase full of cheap clothes and electronics (or a trunk if you drive) - we usually each bring one half empty so I have room! :lol:

  11. by avatar Alta_redneck
    Mon Jun 04, 2012 3:05 pm
    "Unsound" said
    This is the downside of living in Edmonton. No way is it worth it to drive to the states just for shopping, and the amount of stuff you can get back when you're flying is hardly worth it either. And that's without counting the cost of flights.


    Not worth it to drive from Red Deer either, online shopping works great also.

    A friend of mine was in need of a set of high performance Michelin tires for his Porsche. The best quote he got here was $2400.

    He bought the exact same tires online from the US for $798. S/H, duty, taxes, brokerage fees and mounted, for a grand total of $1117.00 8O

  12. by OnTheIce
    Mon Jun 04, 2012 3:35 pm
    Keep in mind people, the rules didn't change for those people looking to make a day trip or just cross the border to shop and come home.

    The rules only changed for those staying 24+ hours or longer.



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