Unfair practices by manufacturers -re pricing on products

Started Mar 23, 2013 | Discussions thread
zackiedawg
zackiedawg Forum Pro • Posts: 30,322
Re: A few factors likely contributing...

phaedin wrote:

Cameras are duty free as there is no Canadian Manufacturer of cameras to protect - so this does not apply

I was more referring to the overall retail market - not specifically cameras.  Many things, indeed most things, are more expensive in Canada compared to the US.

My pay doesnt fluctuate with the exchange rate, so a higher dollar doesnt mean I get paid more. The price of Oil has more effect on prices

Your pay doesn't change, but what the money you earn buys you does...things that are priced at $5 Canadian when the Canadian dollar is at .80 to the US dollar still cost $5 Canadian when the Canadian dollar is at $1.15 to the US dollar.  Everything that runs at a fixed cost as a currency rises in value ends up costing more compared to outside currencies.  Those economies of scale are more easily written off or justified in a larger consumer market.

You will find that Canadians have more discretionary income then Americans at the moment

Indeed, on a per-capita basis, this is likely so.  But your market plays to 34 million people or so - the US market plays to 314 million or so.  Just by sheer volume, there are more people with discretionary income in the United States.

Just postulating - I think there are many small reasons that don't necessarily all have to do with international companies gouging Canadians because they think it's fun and easy.  That might factor in some degree - charge what the market will bear - if Canadians tolerate paying more, indeed the prices might stay higher, especially if no competitors come in with a lower price point - would Sony always charge more to the Canadian consumer market if Canon, Nikon, Panasonic, and other competitors were consistently undercutting their prices by 20, 30%?  And if that were the case, then I'd have to agree Canadians would have to be 'loonie' to keep buying Sony products.  I haven't been alerted to a massive price discrepancy in the camera market in Canada where Sony prices are the only ones higher than in the US - I was under the presumption that virtually all of the camera companies were playing similar pricing strategies.

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Justin
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