Thursday, November 22, 2007

One more factor behind Canadian/American price discrepancies


Yet another thread in the web of factors that lead to things costing what they cost.


Yahoo!: Canadian consumers penalized as U.S. retailers protect home market: Retailers

American suppliers who have to cover the impact of the weaker U.S. dollar at home are penalizing Canadian retailers and their customers by failing to reflect the true value of the strong loonie in their pricing, the Retail Council of Canada's president says.
One reason retail prices are higher in Canada than in the United States, even though the two currencies are now almost the same value, is that American suppliers have been cutting prices to maintain their U.S. market share and passing on their costs to higher currency markets like Canada and Europe, Retail Council's Diane Brisebois told the Commons finance committee Wednesday.


It should be no great surprise that Canadian retailers are getting the shaft from American distributors, this happens quite a bit. Put into a larger perspective, which market do you think suppliers are more concerned about, one with 300 million consumers, or one with only 30 million?

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