Price Gouging Rant Nfr

[dryfly]

I'm pricing out some camera gear. Here are prices for the same item. The top two prices are the USA prices and the bottom two are prices from Canadian dealers. More than a 100 percent price difference (base price) is gouging.

 

After calculating shipping and taxes the Canadian prices are 95 percent higher than prices from US dealers.

 

Thank heavens for eBay and reputable mail-order dealers.

 

[birchy]

Clive..

 

Have you tried pointing this out to some of the Canadian dealers that are doing the gouging? I'd be curious about what they'd have to say for themselves! You'd probably get the typical "we don't give a rat's @ss.. go buy it down there then" response.. but if they start losing enough business they might be forced to change their minds!

[dryfly]

I sent this to Sony Style this evening....with a copy to my MP.

Dear Sony:

 

I've been a Minolta camera user for 39 years and was pleased to switch to the Sony a700 DSLR after using the KM 7D DSLR for two years. I was prepared to pay a higher price here in Canada from a Canadian dealer so I spent $1,600 on the new a700 camera last month in a Lethbridge, Alberta camera shop. It is a great camera and Sony should be proud of it.

 

However, I want to know why the Sony Style price of $549 CAD for the HVLF56AM flash is more than 90 percent higher than in the USA where I can buy it for $279 CAD? Both require to be shipped for about $30.

 

Be assured that I won't buy any more Sony camera supplies here in Canada until Sony lowers its prices by 30 to 40 percent. I accept that taxes and salaries may be higher in Canada than in the USA, but charging nearly double for an item is a disgrace.

 

Good thing for eBay dealers and reputable American mail-order camera dealers.

 

Clive Schaupmeyer

Oldman Communications, Ltd.

http://members.shaw.ca/clives/main2002.htm

Coaldale, Alberta

[Flytyer]

Clive I just ordered a new camera from B&H and along with my NAPP discount I saved hugh....like 65% over price here

[birchy]

Excellent note.. can't wait to hear the response.

[Glenbow]

Want another example? I can't use my new JVC digital camcorder on my Mac unless I buy software. I need Quicktime MPEG2, available on apple.com for $19.99US. Once I go to buy it, it asks my state or country if not in a state where I get redirected to apple.ca where I am afforded the luxury of purchasing the same software for $37.99CDN. I phoned apple to complain & was told 'we're sorry, but we're working on it'. I said thanks a lot for the opportunity of paying twice as much with a more valuable currency than the US customers. By the way, you can't get around the state or country thing on apple.com as I already tried to and then asked about it. No can do. So there you go, yet another example of how we get screwed as canucks.

[PlayDoh]

Now I know what the term "Free Trade" means in definition, but its not a fair calculation to compare the US and Canada in terms of market. Supply and demand dictate prices manufactures determine for a specific area. I'm in no way justifying the price differences you've noticed, but just adding some balance to the issue.

 

The US has 300 million people and manufacture the majority of the majority of all products. Canada is one tenth the market the US is, and it has higher taxes, shipping rates and wages. Essentially the camera argument is one to be given to China, since they are selling the cameras to the US market far cheaper then the Canadian.

 

Compound that with our higher 'cost of business' and you should expect a difference. The new question is where does 'Ebay' and the internet fit in to our 'free market', since its obviously putting the pressure on retail.

 

Again, I'm not arguing the variation is 'fair' at all, but I think the internet acts like a huge magnifying glass which is upsetting to the consumer. Since the dollar value rise, and the US's decline the old excuse of "well their dollars better then ours" lost all credibility regarding price differences. However, you must look at them both as fair markets and the costs involved. Cannon pays X amount to ship cameras to L.A and sells boat loads more then they do to Calgary. That has a significant impact on price, and retailers need for profit per item.

 

Also, duty fee's are things to consider in price, even though their collection isn't a reliable factor. I do expect that to change, since Canadian retailers will eventually be unable to compete. Yet another factor, is that the dollar variance will take at least a year to really see the impact, and much longer to see the full effect.

[dryfly]

PlayDoh,

 

All good points. We agree 100 percent and I reflected that in my letter, "I accept that taxes and salaries may be higher in Canada than in the USA.."

 

Marketing and markets are most complex. This is not a simple situation at all. Like you said, there are economies of scale and assorted other factors. (We all like to make fun of the terrible roads in Saskatchewan. But consider that the population of the entire province is less than that of Calgary. Talk about disparity in tax wealth! In SK, there are 200,000 farmers, 300,000 seniors (they all didn't move to BC), 100,000 natives (who don't pay taxes--right?), 300,000 youths and students. That leaves 37 folks left who are actually working and who pay taxes for roads--and at any one time, half of them are off work ... either fishing or "getting their deer." )

 

Back to the camera tackle ... a 100 percent price difference is simply unacceptable--and I am sure you agree with that. I can see (what??) 20 or maybe 30 percent difference.

 

Glenbow's example is prime....we are talking software only ... heck, probably a download versus and actual shipment of goods.

 

It will be interesting to see where this goes. Until such time that our prices drop significantly, I won't be buying much camera gear north of 49.

 

Cheers!

 

Clive

[PlayDoh]

Ya, I've got an eye on a camera and I've seen the difference myself. Whats interesting to note that the price difference isn't near equal for all items, some products are worse then others. Most notably, Asian electronics.

 

I'm sure most of the blame is on companies lack of understanding the details involved. The Apple software is the perfect example. Even Apple calculates Canadian bandwidth as twice the price. Now thats ignorant, but sadly not uncommon.

 

I remember when Xbox live first came online, while registering for support and networking it asked you for your country. Now there were countries galore, about almost 100, yet no Canada. I'm sure I wasn't the only one who pointed it out, but if your a multi billion dollar business and you simply over-look Canada, which is just over a hundred miles from your headquarters, its proof of the lack of understanding.

 

If the dollar stays above the green-back, then I'm sure we will see the changes come. Money talks.

[fishinhogdaddy]

I just got my new Panasonic 50" Plasma off the internet from Florida. Shipping, Freight Insurance, Gouge and Screw Tax, Warranty for 3 years and it still came in $800-$900 cheaper than anyone in Calgary or Canada for what I could find. A bit of a challenge to get it as their shipping co. (DHL) doesn't deliver anything over 70lbs. Went to DHL, got paperwork, went to Customs and cleared it myself, went back and got my baby! The TV is absoulutley gorgeous! 1080p, no damage "best TV we've ever tested" quotes one of the Consumer mags I get monthly. I haven't even hooked it up to an HD Box yet and the picture is outstanding! Got HDMI cables from Alberta Computer Cable. One 3m and one 5m for $42. Look for the deals boys and girls...there out there. If anyone wants more info, just PM me. FHD

[ladystrange]

Want another example? I can't use my new JVC digital camcorder on my Mac unless I buy software. I need Quicktime MPEG2, available on apple.com for $19.99US. Once I go to buy it, it asks my state or country if not in a state where I get redirected to apple.ca where I am afforded the luxury of purchasing the same software for $37.99CDN. I phoned apple to complain & was told 'we're sorry, but we're working on it'. I said thanks a lot for the opportunity of paying twice as much with a more valuable currency than the US customers. By the way, you can't get around the state or country thing on apple.com as I already tried to and then asked about it. No can do. So there you go, yet another example of how we get screwed as canucks.

 

 

Glen, do you have any friends in the US. i know it is a bit of a pain, but ship it to them and then have them send it to you labled 'present/gift'

 

 

it is a serious pain in the butt. in my industry we have found that as the canadian dollar goes up and the US down, prices in the US are rising for some things.

 

 

what i want to know is why gas went up again today. CAD opened at 1.08 USD and the crude went up a tiny bit, but really if a barrel is 90 USD, that's $83.33CAD. why is gas back up to 1.02/L. when i was in oregon in August, gas was 2.58USD per imperial gallon. = approx .68usd a liter. i know, taxes.

[H2O]

Since there is talk of the Sharp Aquos on another thread, here is another price gouging example:

 

USA (Florida) - Sharp Aquos 46" LC46D82U , 1678.00 CDN + Freight Insurance/Shipping 312.00 + GST = 2109.00 Canadian

 

BestBuy/Visions/Brick Calgary - Sharp Aquos 46" LC46D82U, 2599.00 + GST = 2755.00 646.00 MORE!!! That's another nice fly rod.

[SteveM]

Tell me, Clive; does the NFR in your topic title stand for "not fishing related" or for "not f***ing right" ?