Why does Canon Canada gouge Canadians?

... because they can, I guess.
Why does the 40D list at $1399 here, and $1299 in the States?
I paid $1356 through my dealer. That made the difference small enough to me that I didn't care.

Loving the camera as well....
 
$9299 - $7999 = $1,300

Plus the 2 cent CDN$ advanatge...closer to about $1,275.

BUT I get your point and am in full agreement.

We get hosed on lenses...

But I think Nikonians even have it worse...you shop in the USA, no warranty with Nikon Canada where as Canon ZCanada does warranty it.
 
Finally an intelligent post. Maybe this is a newsflash, but Canada and the USA have different currency. That means that they buy and sell money, goods and services in different currency. Why does it make sense to have identical prices in the both countries all tied to the two independent currencies??

It sounds like many on this forum are proposing the idea that we should combine the currency into the North American Dollar (NAD??) much like the Euro. Otherwise, companies need to price things at a certain level in each country so the retailers can set their price and budget accordingly. What should Canon Canada do if the currency spikes 10% over the course of a few months?? Do they reimburse all the retailers for the difference in prices, or maybe send a rebate to everyone that bought a camera? Doesn't sound that feasible to me.
At the time the 40D was released (2 months ago), the Canadian price
was very close to the American one when you take the exchange rate
into consideration. You can't rightfully complain that about,
there's just no way. Canon was VERY fair at the time.

You can't expect retailers to change the price every time the
Canadian dollar changes. I think the best you can ask for is a price
change every quarter or so.
 
Maybe this is a newsflash, but Canada
and the USA have different currency
Really? Now, this is truely new!
Why does it
make sense to have identical prices in the both countries all tied to
the two independent currencies??
Here is the real news , at least for you:
the Canadian dollar is now MORE WORTH on the international market than a US $
As Canon's (and Nikon's etc) products are imported from third countries like Japan, etc. what counts is, how much money of their currency the seller (i.e. Canon Japan etc.) gets for the Canadian price.

As of now, Canon makes MUCH HIGHER PROFIT on an item sold in Canada than in the US.
What should Canon Canada do if the currency
spikes 10% over the course of a few months?? Do they reimburse all
the retailers for the difference in prices, or maybe send a rebate to
everyone that bought a camera? Doesn't sound that feasible to me
Here is another news for you: Canon has started a rebate program in Canada, which gives back at least some part of this extra profit.

--
Gabor

http://www.panopeeper.com/panorama/pano.htm
 
Maybe this is a newsflash, but Canada
and the USA have different currency
Really? Now, this is truely new!
I'll elaborate. We live in Canada based on the Canadian $. When the dollar goes up and down we are still buying products/services based on OUR dollar, so nothing has changed for us. I don't disagree that the retail prices should stabilize eventually, but expecting product prices to fluctuate with the rapidly changing dollar is not very practical. The 40D was released in canada at the exchange rate at the time of release, the dollar has since reach parity with the USD, so what do you think Canon should do? What if the dollar drops again in a few months. Would anyone accept the price of the 40d dropping from 1400 to 1300 and back to 1500 in a few months???

As a side note, I'll say that this attitude of demanding the lowest price and expecting companies to drive the costs down is causing a lot of problems. Look at the millions of recalled toys this summer due to poor manufacturing practices. A company like Walmart demands a product for a crazy low price and the companies of lower morality decide to cut corners to artificially create those products at lower prices. People should accept the fact that things cost a certain amount, and everyone in that chain to make the products deserves to make a decent wage. Were are most of Nikons cameras made?? They have a separate factory for the high quality models and a lower quality factory in another country that churns out units with likely substandard quality.

That was my soap box for the day.
Why does it
make sense to have identical prices in the both countries all tied to
the two independent currencies??
Here is the real news , at least for you:
the Canadian dollar is now MORE WORTH on the international market than a US $
Thank you for clarifying that fact. I actually live in a cave in Toronto, so I hadn't heard that one.
As Canon's (and Nikon's etc) products are imported from third
countries like Japan, etc. what counts is, how much money of their
currency the seller (i.e. Canon Japan etc.) gets for the Canadian
price.

As of now, Canon makes MUCH HIGHER PROFIT on an item sold in Canada
than in the US.
How do you know this?? Do you know all the steps between manufacture and retailer? Maybe if Canon USA buys from Canon Japan, that adds another step to sell to Canon Canada. Who stocks canon equipment in canada? Do they get stock from the USA or Japan? please, if you are privy to the books of the Canon opperation let us know so you can educate everyone.
What should Canon Canada do if the currency
spikes 10% over the course of a few months?? Do they reimburse all
the retailers for the difference in prices, or maybe send a rebate to
everyone that bought a camera? Doesn't sound that feasible to me
Here is another news for you: Canon has started a rebate program in
Canada, which gives back at least some part of this extra profit.
They offer a rebate usually a couple times a year? What is the reason for that? Maybe they just want a boost in sales and they are pushing some products at low profit hoping to gain more market share and future purchases. (They are also offering a rebate in the USA, is this to account for the low US dollar???)
 
OK, let's say we take into account the currency exchange rates between the US and Canada so that we're really comparing fairly.

Even taking that into account, if Canon Canada sets the MSRP higher in actual value than Canon USA's price in the US, there could be a reason.

Is it possible that the various taxes imposed upon a business end up making it more expensive to run a business in Canada than the equivalent operation in the US?

In the US, we have to pay Worker's Comp and match federal income tax and social security taxes on worker's wages. There's also federal and state unemployment taxes and the like. And the company may choose to offer a health care package. But in Canada, what are the equivalent taxes and expenses paid by employers for their workers? And what about other costs of running a business in Canada versus the US?

I have no idea how this would all compare, but maybe it is simply a bit more expensive for Canon to do business in Canada than it is in the US and thus, Canon Canada sets its prices a bit higher to cover those extra costs.

But as a citizen of Canada, presumably you benefit from the fruits of any extra taxes, and you indirectly benefit from higher wages and benefits, etc. And in a way, the higher prices you might pay for some goods and services are effectively a way of passing these taxes and expenses on to citizens. (No business really pays taxes - their customers do. ... as they saying goes). So I think we need to take a lot into account when comparing prices for any goods or services.

There are endless possibilities as to things that might increase costs. Higher labor costs? Higher taxes? Higher costs of other goods and materials required to run the business? Higher insurance rates? Higher transportation costs? Lower overall sales volume leading to a slightly lower efficiency? Beats me :)

Perhaps Canon Canada is just setting prices to cover their actual costs of doing business in Canada.

I have no idea how this would all add up, but it's just a thought.

--
Jim H.
 
They would gouge Americans but none are dumb enough to take the bait ;).

Canadians are not the only ones to get gouged. Ask the europeans about Canon gouging...
--
Michael Kaplan
http://www.pbase.com/mkaplan
See my profile for equipment list
 
It has greatly improved...
However what is absurd are lens prices:
Canon Zoom Telephoto EF 70-200mm f/2.8L IS $1699 at BH Photo
Canon Zoom Telephoto EF 70-200mm f/2.8L IS $2149 at Henrys (after
$450 off)
When I purchased this lens I paid
--
Michael Kaplan
http://www.pbase.com/mkaplan
See my profile for equipment list
 
Maybe this is a newsflash, but Canada
and the USA have different currency
Really? Now, this is truely new!
I'll elaborate. We live in Canada based on the Canadian $. When the
dollar goes up and down we are still buying products/services based
on OUR dollar, so nothing has changed for us. I don't disagree that
the retail prices should stabilize eventually, but expecting product
prices to fluctuate with the rapidly changing dollar is not very
practical. The 40D was released in canada at the exchange rate at
the time of release, the dollar has since reach parity with the USD,
so what do you think Canon should do? What if the dollar drops again
in a few months. Would anyone accept the price of the 40d dropping
from 1400 to 1300 and back to 1500 in a few months???

As a side note, I'll say that this attitude of demanding the lowest
price and expecting companies to drive the costs down is causing a
lot of problems. Look at the millions of recalled toys this summer
due to poor manufacturing practices. A company like Walmart demands
a product for a crazy low price and the companies of lower morality
decide to cut corners to artificially create those products at lower
prices. People should accept the fact that things cost a certain
amount, and everyone in that chain to make the products deserves to
make a decent wage. Were are most of Nikons cameras made?? They
have a separate factory for the high quality models and a lower
quality factory in another country that churns out units with likely
substandard quality.

That was my soap box for the day.
Sounds a little racist to say that some counties operate under substandard quality??? Its easy to assume that your implying that Thailand workers in Nikon Plant, are producing lesser quality camera's than Japanese made Nikon Camera's.
http://nickmjr.smugmug.com/
Nick M
 
I'll elaborate. We live in Canada based on the Canadian $. When the
dollar goes up and down we are still buying products/services based
on OUR dollar, so nothing has changed for us
This does not have any bearing on import/export.
expecting product
prices to fluctuate with the rapidly changing dollar is not very
practical
The exchange rate has been changing for a long time, in the same direction. There is absolutely no reason not to take this into account. I wonder if you would advocate this position if the Canadian dollar went down to US$ 0.50. Why change? Really.
The 40D was released in canada at the exchange rate at
the time of release, the dollar has since reach parity with the USD,
so what do you think Canon should do?
The 40D's price is not far from the price based on the exchange rate. However, as listed in above posts, other products are far off.
As a side note, I'll say that this attitude of demanding the lowest
price and expecting companies to drive the costs down is causing a
lot of problems
Economics 1x1: this issue has nothing to do with costs, but with exchange rate. Let's stick to the subject.
Do you know all the steps between manufacture
and retailer? Maybe if Canon USA buys from Canon Japan, that adds
another step to sell to Canon Canada. Who stocks canon equipment in
canada? Do they get stock from the USA or Japan?
Again economics 1x1: it does not matter if Canon Canada buys the products from Canon Europa, which buys from Canon Australia, which buys from Canon Indonesia etc., thereby distributing the profit over x places.

All that is Canon.

Some manufacturers, particularly the Japs choose to "steal away" their profits, so that they need to pay less tax in certain countries. They are fooling people - obviously successfully - with such practices. There is nothing new on that, it has been going on for decades (the US government has been trying to stop this scandal, w/o much success).

All that does not change the fact, that Canon gets a much higher profit for products sold in Canada than in the US .

Btw, Canon is not the worse. Look at for example memory cards: they cost almost TWICE as much in Canada than in the US.
They offer a rebate usually a couple times a year?
The current rebate program is much more than usual: a longlist of items, quite a few of them new. For example $300 on the 16-35mm f/2.8L II, etc. This is at least partly the reaction to the increased direct import from the US.

--
Gabor

http://www.panopeeper.com/panorama/pano.htm
 
Sounds a little racist to say that some counties operate under
substandard quality???
Goodness, such a nonsense!

Are YOU believing, that the Sony products made in Mexico are of the same quality as those made in Japan?

It has nothing to do with racism. It is a fact of daily life. We are swamped by garbage made in China, and to boot it, the garbage is getting more expensive.

--
Gabor

http://www.panopeeper.com/panorama/pano.htm
 
Quite a bold statement. The quality of the products has a lot to do with the working conditions, wages and steps taken during quality control. I don't think it is any sort of stretch to say that 3rd world countries use forced labour, substandard working conditions and minimal wages. All this means they aren't gettting the best people to do the job and the final product suffers. If you don't believe this take some time and search around for some reports/documentaries on working conditions and labour practices in these countries.

Why is it that German (and other european countries) produce some of the best (and most expensive) products in the world? I have a cordless drill from a german company that will last a lifetime, but costs 10x as much as a similar product manufactured in china/se asia.
Sounds a little racist to say that some counties operate under
substandard quality??? Its easy to assume that your implying that
Thailand workers in Nikon Plant, are producing lesser quality
camera's than Japanese made Nikon Camera's.
http://nickmjr.smugmug.com/
Nick M
 

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