Dollar Parity Means Canadian Retailers Had Better Get Used To Adjusting Their Prices

You read the news and it looks incredible – the Canadian dollar is on par with its U.S. counterpart. You have visions of the bargains you’ll be able to get dancing in your head as you go into a local store to buy that item you’ve been saving  for. And then, reality and your sense of anger both hit.

Despite the “bucked up” buck, the price to buy it in Canada is still ridiculously high compared to what they want for it in the States. It doesn’t take long to see it, in example after example. But the most obvious may be in bookstores, where both prices are prominently displayed side by side on the back cover. Buy the tome in Yankee dollars and it’s $7.95. Pull out your Canadian paper and you’re forking over $12 or more – plus tax. Something’s out of whack but no one seems willing to fix the problem.

Still, some retailers are aware of that imbalance and are taking steps to address it, fearing you’ll either go across the border to buy that big screen TV or purchase that cheaper iPod off the Internet. It’s a lesson comic book dealers at The Silver Snail on Queen St. W. learned a long time ago. “We’ve been offering all the stuff at par on the US dollar for about three years now,” explains manager George Zotti. “We figured … okay we’ll start offering our customers something extra and it makes us look a little better.”

And customers have noticed. “I tend to go to stores like this because they’re actually  taking it into consideration rather than just going from the book price and trying to make a couple extra bucks,” praises David McDonald.

Retailers claim the prices are usually set six months to a year in advance and that’s why they take so long to change. Try telling that to people who buy gasoline. But experts are warning that unless vendors here start making changes sooner, they risk losing not only sales but customer loyalty as well. “I see some businesses that were already facing this situation a year-and-a-half to two years ago so it’s not news to them,” assures investment advisor Paul Thornton. “It’s more significant now but whatever changes they may have avoided before, it’s starting to catch up to them and they really have to adjust now.”

And for savvy customers like McDonald, that makes all the difference. “I just don’t buy from them,” he asserts. “It’s as simple as that.” And for those who sell expensive gear like cars and big screen TVs, that’s a growing attitude that can cost them dearly.

So what can you do if you think you can get it cheaper elsewhere? Here are a few suggestions.

Consider cross border shopping. Yes, you’d rather buy Canadian. But depending on the item, the savings can be considerable. Remember, if there’s not that much difference, unless you live near the border it could cost you more in gas than you’ll end up saving.

Check the Internet. Buying online from the U.S.  doesn’t require a drop in your tank and it’s fairly secure. Depending on what you’re purchasing, it could be cheaper even with the small exchange rate, shipping and the ever present GST factored in. 

Be prepared to dicker. Show your local retailer how much cheaper you can get it elsewhere and tell him you’d prefer to save the hassle by buying it from him – at the same price.