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Canadians Officially Study Higher Prices


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You seem to be. Who started this thread?

Canada.

riiight....and start a thread about something you dont care about.

Ok....oh christ thats laughable.

You have become a parody of what you mock.

No problem....how much less Americans pay apparently is a very serious matter to some Canadians...including the Senate.

Here's another bitch fest about the cost and duration of cellphone contracts in Canada:

http://www.cbc.ca/news/canada/story/2013/02/07/business-telecom-competition-bureau.html

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Additionally, the 5% GST adds to the cost of most goods and services, at each step along the process of production. So your weak, short, simpleton response is moot.

So when a company sells an imported good,how many steps of production are there to accumalate?

By the way,in Ontario its a %13 HST.You're from Ontario right?

WWWTT

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I can understand that shipping, labour, taxes, healthcare etc. add to prices. Thats fine I happily pay a little more to live in the best country in the world. However where there is clear price fixing that is a real problem and because that is happening there it is probably happening other places to.

No.BC is right.

The high prices in Canada is because of socialism borderline comminism and me must pay for our sins!

How dare you suggest that our beloved and honorable corporations.distributors would act in a selfish way!

Walmart would never do anything bad for Canada!

You must be a bad person Punked.Your lucky if the police don't kick in your front door right now and bring you to jail for drugs.Only someone selling dangerous drugs to children would question the honesty of corporate Canada.

Why can't you be more like Shady Punked?Stop doing bad things and get a job at Walmart.

WWWTT

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Additionally, the 5% GST adds to the cost of most goods and services, at each step along the process of production.

Wait...it gets worse.

Had to quote these together for posterity reasons.

The GST adds to the cost of most goods at each step in the production line! laugh.png

Is this some kind of ironical ignorance of economics thread?

Do the righties not remember their script about VATs?

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The Canada pricing soap opera continues:

Canadians are paying far more than Americans for the same products because of a systemic and unjustifiable markup scheme by many manufacturers, a retail expert says.

A Marketplace report on Canada-U.S. price gaps found Canadians paying higher prices — more than double in some cases — for the same retail goods because of an industry phenomenon called "country pricing."

"Country pricing"...I like that euphemism for less competitive, more regulated, higher taxed, and poorly distributed. Federal, provincial, and local government are complicit in maintaining higher retail prices for obvious revenue reasons (taxes, tariffs, fees, etc.).

Is this a "We're mad as hell and we're not going to take it anymore !" moment ? Maybe, but little will change because Canada has very little leverage when it comes to buying such finished goods, and domestic manufacturers practice the same thing.

Looking at some of these prices....most Canadians must be rich !! biggrin.png

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From the report:

and Brisebois says the government is losing another $8 billion to $10 billion in tax revenue.

Considering that Canada's entire tax revenue is $250 billion, that's a 4% loss from border shopping, which is HUGE. If those numbers are correct, I'm sure Ottawa will probably seek to address the issue in some way in order to be able to capture some of that lost revenue.

But once again it mentions:

One reason that Canadians pay so much more is simply that they're accustomed to it.

Bayer responded to Marketplace's story with an email pointing to similar causes.

"[Manufacturers] say… the market can bear it," Brisebois said. "[Canadians] had more money or they were used to paying a higher price."

Canadians are accustomed to being ripped off, and so they will continue to be ripped off. That about says it all.

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Considering that Canada's entire tax revenue is $250 billion, that's a 4% loss from border shopping, which is HUGE. If those numbers are correct, I'm sure Ottawa will probably seek to address the issue in some way in order to be able to capture some of that lost revenue.

Right, but just doing some napkin figurin', wouldn't Ottawa and the provinces lose even more tax revenue if prices were dropped to U.S. retail levels ?

Canadians are accustomed to being ripped off, and so they will continue to be ripped off. That about says it all.

Hence my rude CST comment.....Canadian Sucker Tax.

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Right, but just doing some napkin figurin', wouldn't Ottawa and the provinces lose even more tax revenue if prices were dropped to U.S. retail levels

Not necessarily. It's like any manufacturer/retailer doing a profit margin vs sales volume analysis. There's a maximum somewhere on the curve, and you gotta find it to rake in the most revenue. And Canadian retailers don't have to drop prices to equal US levels, if the discrepancy was in the range of 5-20% most people probably wouldn't bother, I'd guess it's when the price difference is 30-200% that Canadian retailers loss business.

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Not necessarily. It's like any manufacturer/retailer doing a profit margin vs sales volume analysis. There's a maximum somewhere on the curve, and you gotta find it to rake in the most revenue....

Roger that, but with harmonized taxes, tariffs, and fees based largely on the item's value, I wouldn't think that government is going to welcome such drastic price reductions unless there is an increase in sales volume to make up for the loss in revenue. I agree that direct comparisons to the U.S. are problematic, but that is what a lot of Canadians do when they look at prices "south of the border".

What would bug me more is the unavailability of certain products in Canada at any price.

Edited by bush_cheney2004
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