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Thread: CAD at parity with USD again

  1. #1
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    Default CAD at parity with USD again

    I haven't really been looking at the rates until I noticed today that we are on par with the USD. I actually was in the process of purchasing some motorcycle parts from the US (already 50% discount over ripoff cdn prices) so that is a nice surprise.

    My problem is that in the big scheme of things, the US cost discount in conjunction with the dollar at parity has had no effect on CDN domestic pricing. Last year everyone thought that retailers were going to have to cut prices to avoid losing business. What the heck happened?

    USD vs CDN

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    Long story:

    Canadian pricing is only slightly subsidized for most goods, US pricing is heavily subsidized for all goods (including food and gasoline, and yes nickel) The US has 99-week EBT food stamp benefits for anyone who "needs" it as well (currently 45.8 million people)

    In other words, we only borrow about 5% per year against the future, the US is more like 7% on a larger amount.

    http://www.usdebtclock.org/

    In order to keep prices low, the US has mandated a "free money" policy along with a "cheap goods" policy, which is currently costing each person in the US $12,291 per year in interest. Cheap goods are only cheap because of borrowing against the future.

    If I had to guess: "True" pricing of goods without government assistance and debtloads would probably be somewhere between Calgary and Nunavut. Most people tend to get fooled into thinking the true prices of goods should be somewhere between Canada and the US, which would be mostly wrong.

    Last edited by ZenOps; 08-09-2012 at 04:57 PM.
    0.5 gram microsd delivered by 12,000 pound combustion vehicle and driver.

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    There's more to this - we are in the retail pet food business and this past winter I had one of our US based pet food manufacturer's e-mail me their suggested retail pricing list - this list included the prices (my cost) I should be charged for this product from my distributor. After looking through it, it became apparent that they were expecting me to sell their product at 0% mark-up - called them to discuss the situation and discovered that I was sent the US retailer pricing guideline. They then e-mailed me the Canadian pricing guideline and amazingly my cost had gone up significantly matching what I was paying my Canadian based distributor - more amazing is that my Canadian distributor is paying the same price for the manufacturer's product as the retailers were paying for this product in the USA.

    In short, this manufacturer is gouging the Canadian marketplace because they just can and to quell the beyonders who might just suggest I buy from a US based distributor - that can't be done as the manufacturers control where we can buy our product from through territories and such. So us Canadian retailers are at a disadvantage (at least in our industry) when trying to match US pricing just because of how the system is set up - better for us to stock Canadian (insulates us against a high US dollar) and it supports Canadian manufacturers.
    Will fuck off, again.

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    I'm just astounded that there have been no discernible adjustments since this was big news last year.

    Using my ultra-simplified situation: If dog food costs $10 online and $20 at the local store, let's call it a $5 cost of convenience (assuming $5 shipping). I'm fine with this transaction locally because convenience has a value.

    My motorcycle wheel costs $450 in the states and $950 here (these are actual numbers). Both would be special order, hence no convenience to me as they will both require shipping (likely from the same warehouse somewhere). Duty free, GST paid, and I'm still paying 50% less than local Canadian price. Can you tell me that these cdn prices are being sustained by local demand? Paying $100+ bucks to a UPS guy for "brokerage" feels like getting away with robbery in this case!

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    I suppose you could. But most items nowadays are all made in China anyhow. About the only thing you need the US for are car specific parts, or military hardware.

    Made in China, but priced in US dollars. By that rationale, if you were looking for the absolute best price, You should not only be skipping local Canadians, you should be skipping the US entirely. Many online China dealers now do direct currency conversions from CDN to Yuan. IE: An Apple Iphone is just a branded version of something made at the Foxconn plant in China. If Foxconn sells the exact same thing without the logo on the front (and you know enough to not get a fake) then why even bother ever buying anything off of Apple US?

    I used to shop for cabling at monoprice (US) but then realized its just cheaper to get it from China directly.

    *dingdong* - wait thats my doorbell. Hey, what are all those FBI and secret service people doing outside my door?
    Last edited by ZenOps; 08-09-2012 at 07:14 PM.
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    Originally posted by ZenOps
    The US has 99-week EBT food stamp benefits for anyone who "needs" it as well (currently 45.8 million people)
    Jesus christ.

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    .
    Last edited by Cos; 01-02-2017 at 10:54 AM.
    Originally posted by adam c

    Line goes up, line goes down, line does squiggly things and fucks Alberta
    "The stone age didn't end because we ran out of stones"

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    Sure *if* you can maintain that level.

    Real Inflation at about six percent seems to be the accepted value where people feel that they are "getting ahead". IE: If you think you can retire on $1 million today and be comfortable, and you plan to retire in twelve years, you better have saved $2 million because that is what 6% compounded works out to be.

    Problem is - many nations other than Canada are experiencing deflation, which absolutely destroys the six percent rule. If you are actually experiencing negative growth at six percent, you can make any nation bankrupt in 12 years regardless of initial monetary size or latent wealth. Its simple math.

    As of 2012, 46% of US citizens retire less than $10,000 ahead of the game:

    http://www.huffingtonpost.com/2012/0...n_1746862.html

    Unless they money print more electronic currency, which only works for as long as producers are willing to sell to consumers to attain more virtual numbers, and SuperMarioBrothers coins. A consumption based economy also destroys anyone who even attempts to "save" money, and rewards people who spend every last nickel as they earn it. Not that thats a bad way to do things, but Canada as a "producing" nation, its in our interest to not money print and convince everyone else not to money print.
    Last edited by ZenOps; 08-11-2012 at 06:57 AM.
    0.5 gram microsd delivered by 12,000 pound combustion vehicle and driver.

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