That surging looney
Sept 27, 2007 12:33:21 GMT -5
Post by Disgruntled70sHab on Sept 27, 2007 12:33:21 GMT -5
Don't know how this affects our businessmen community members but here's something that hasn't been corrected:
Consumers still see double with U.S., Cdn pricing
By Lauren La Rose, THE CANADIAN PRESS
2007-09-26 18:10:00
TORONTO - Since its meteoric rise to reach parity with the U.S. dollar last week, the Canadian loonie continues to hold its own, closing daily virtually even with the American greenback.
Yet on small-ticket items including magazines and greeting cards, Canadians are still seeing double - a price in U.S. dollars alongside a higher figure in Canadian currency for the same product.
"I wish I was American," joked Ava Baccari, 17, a first-year student at Ryerson University, whose campus is located steps away from a Toronto shopping mecca, the Eaton Centre. "(It's) always cheaper, their prices."
Baccari said she gets jealous when she spots the difference in the prices. Now with the loonie virtually deadlocked with the U.S. dollar, she's even more skeptical about the disparity.
"I would just say, 'What's it really worth?"' she said. "It makes me question why do they have to pay less?"
At a downtown Claire's accessories store, six skull-and-crossbones barrettes were priced at C$9.99 - while US$6.50 is listed on the same price ticket.
A pair of large, silver hoop earrings were pegged at US$7 and C$8, and a thin, tan, plastic hairband was priced C$3 compared to US$2.50 on the same label.
Repeated telephone calls and e-mails asking representatives from Claire's for comment at the company's New York offices were not returned by deadline Wednesday.
Despite some consumer confusion and complaints, retail insiders say shoppers shouldn't expect to see the lowering of Canadian prices on these items anytime soon, largely because there's more to determining the figures than meets the eye.
While retailers in Canada and the U.S. may have the same name, they generally operate as very different companies, often buying items from different suppliers, said Derek Nighbor, vice-president of national affairs for the Retail Council of Canada.
What's more, retailers often purchase goods at fixed exchange rates long before items reach consumers, he said.
"We're not in a position where I buy a good, it's on the shelf tomorrow and I'm going to sell it on Thursday," said Nighbor. "We're in a world now where stuff is coming from all over the world and it takes a bit of time to get it to market, and it takes a bit of time to sell it.
"(When) you're dealing with buying products in advance as a retailer at a fixed exchange rate, it's difficult, and it takes some time to flow those savings through."
"If the Canadian dollar continues in the months ahead to continue to hold its own or appreciate, it's going to take some time, but we will see some savings realized eventually."
Jim Driscoll, a spokesman for Carlton Cards, said the company has been receiving feedback inquiring about the differences in dual prices stamped on their products.
"Some people (are) calling saying (they're) unhappy, but other people questioning why there's a difference more than understanding the difference itself," he said.
Driscoll said the company's three biggest costs - labour, rent and transportation - have all increased in the last year, although he declined to specify a specific dollar amount.
"The fact that the dollar is stronger versus the U.S. dollar hasn't affected our pricing at this point because we price our product based on what our costs are, and then understanding what our competition's doing and what's an appropriate price for the Canadian marketplace."
Cards are also pre-printed anywhere from nine to 18 months in advance, he said.
"Any changes you decide to make take quite a while to implement, and that's just to get them to market, and of course, you probably have existing inventory today that you would need to deplete as well," Driscoll said. "That can take quite a while, there's quite a time lag."
Driscoll said he would "never rule out" having a single price on cards, but couldn't foresee it in the near future.
"We are looking into all kinds of different options of what we can do as an industry."
Driscoll said most Carlton cards retailers have 50-cent coupons available until mid-December for customers to use on cards priced $2.49 and up. The promotion, also available on their website, wasn't planned based on the exchange rate, he said .
While they have received "a handful of complaints" about the double pricing, a spokesperson for Hallmark Canada said most people understand the company works through a long production cycle where cards are pre-printed months in advance of hitting stores.
"We're certainly very aware of what's been happening in the market, and we're always looking at our pricing because we really want our customers to get good value for their money as much as possible."
A spokesperson for Hearst Magazines, publisher of U.S. titles including Cosmopolitan, Esquire and Good Housekeeping, said they haven't received any complaints from Canadian consumers to date concerning the double pricing.
"We are analyzing sales on both sides of the border to assess the impact of recent currency changes on units and revenue," the spokesperson wrote in an e-mail to The Canadian Press.
"We've consulted with the Canadian wholesalers we've worked with for many years. They remain comfortable with the relatively higher prices now being charged Canadian consumers."
"We're maintaining current newsstand prices at this time but will continue to monitor the situation."
Now that it's easier for consumers to compare, there will be even greater awareness about relative prices now that that the loonie has reached parity, said Guy Holburn, an associate professor at the Richard Ivey School of Business at the University of Western Ontario.
Consumers will start moving to online shopping and ordering goods directly from the U.S., he said.
"Obviously, there are costs of transportation, shipping, there are duties to be paid, and so that's going to limit that somewhat. But I think the greater degree of visibility is going to create some pressure on retailers to reduce their prices," Holburn said from London, Ont.
The link
Consumers still see double with U.S., Cdn pricing
By Lauren La Rose, THE CANADIAN PRESS
2007-09-26 18:10:00
TORONTO - Since its meteoric rise to reach parity with the U.S. dollar last week, the Canadian loonie continues to hold its own, closing daily virtually even with the American greenback.
Yet on small-ticket items including magazines and greeting cards, Canadians are still seeing double - a price in U.S. dollars alongside a higher figure in Canadian currency for the same product.
"I wish I was American," joked Ava Baccari, 17, a first-year student at Ryerson University, whose campus is located steps away from a Toronto shopping mecca, the Eaton Centre. "(It's) always cheaper, their prices."
Baccari said she gets jealous when she spots the difference in the prices. Now with the loonie virtually deadlocked with the U.S. dollar, she's even more skeptical about the disparity.
"I would just say, 'What's it really worth?"' she said. "It makes me question why do they have to pay less?"
At a downtown Claire's accessories store, six skull-and-crossbones barrettes were priced at C$9.99 - while US$6.50 is listed on the same price ticket.
A pair of large, silver hoop earrings were pegged at US$7 and C$8, and a thin, tan, plastic hairband was priced C$3 compared to US$2.50 on the same label.
Repeated telephone calls and e-mails asking representatives from Claire's for comment at the company's New York offices were not returned by deadline Wednesday.
Despite some consumer confusion and complaints, retail insiders say shoppers shouldn't expect to see the lowering of Canadian prices on these items anytime soon, largely because there's more to determining the figures than meets the eye.
While retailers in Canada and the U.S. may have the same name, they generally operate as very different companies, often buying items from different suppliers, said Derek Nighbor, vice-president of national affairs for the Retail Council of Canada.
What's more, retailers often purchase goods at fixed exchange rates long before items reach consumers, he said.
"We're not in a position where I buy a good, it's on the shelf tomorrow and I'm going to sell it on Thursday," said Nighbor. "We're in a world now where stuff is coming from all over the world and it takes a bit of time to get it to market, and it takes a bit of time to sell it.
"(When) you're dealing with buying products in advance as a retailer at a fixed exchange rate, it's difficult, and it takes some time to flow those savings through."
"If the Canadian dollar continues in the months ahead to continue to hold its own or appreciate, it's going to take some time, but we will see some savings realized eventually."
Jim Driscoll, a spokesman for Carlton Cards, said the company has been receiving feedback inquiring about the differences in dual prices stamped on their products.
"Some people (are) calling saying (they're) unhappy, but other people questioning why there's a difference more than understanding the difference itself," he said.
Driscoll said the company's three biggest costs - labour, rent and transportation - have all increased in the last year, although he declined to specify a specific dollar amount.
"The fact that the dollar is stronger versus the U.S. dollar hasn't affected our pricing at this point because we price our product based on what our costs are, and then understanding what our competition's doing and what's an appropriate price for the Canadian marketplace."
Cards are also pre-printed anywhere from nine to 18 months in advance, he said.
"Any changes you decide to make take quite a while to implement, and that's just to get them to market, and of course, you probably have existing inventory today that you would need to deplete as well," Driscoll said. "That can take quite a while, there's quite a time lag."
Driscoll said he would "never rule out" having a single price on cards, but couldn't foresee it in the near future.
"We are looking into all kinds of different options of what we can do as an industry."
Driscoll said most Carlton cards retailers have 50-cent coupons available until mid-December for customers to use on cards priced $2.49 and up. The promotion, also available on their website, wasn't planned based on the exchange rate, he said .
While they have received "a handful of complaints" about the double pricing, a spokesperson for Hallmark Canada said most people understand the company works through a long production cycle where cards are pre-printed months in advance of hitting stores.
"We're certainly very aware of what's been happening in the market, and we're always looking at our pricing because we really want our customers to get good value for their money as much as possible."
A spokesperson for Hearst Magazines, publisher of U.S. titles including Cosmopolitan, Esquire and Good Housekeeping, said they haven't received any complaints from Canadian consumers to date concerning the double pricing.
"We are analyzing sales on both sides of the border to assess the impact of recent currency changes on units and revenue," the spokesperson wrote in an e-mail to The Canadian Press.
"We've consulted with the Canadian wholesalers we've worked with for many years. They remain comfortable with the relatively higher prices now being charged Canadian consumers."
"We're maintaining current newsstand prices at this time but will continue to monitor the situation."
Now that it's easier for consumers to compare, there will be even greater awareness about relative prices now that that the loonie has reached parity, said Guy Holburn, an associate professor at the Richard Ivey School of Business at the University of Western Ontario.
Consumers will start moving to online shopping and ordering goods directly from the U.S., he said.
"Obviously, there are costs of transportation, shipping, there are duties to be paid, and so that's going to limit that somewhat. But I think the greater degree of visibility is going to create some pressure on retailers to reduce their prices," Holburn said from London, Ont.
The link
) and the difference is ridiculous. The base price of the car I'm looking at in Canada is more than the end price in the US. Add options, freight, taxes . . . that's why I'm still driving the tank.