Will GST cut stop cross border shopping?

96 posts / 0 new

Thu, 2007-11-01 07:22

Sven

quote:

Originally posted by Frustrated Mess:
[b]but I would never trade my lifestyle for yours. And that's not to be mean, but just to state a fact.[/b]

I don't take it as mean at all.

I grew up in a town of tree-lined streets, a community where everyone knew each other, where kids could freely play anywhere in town, day or night, and parents didn’t have to worry about them because [i]some[/i] adult in town would always know what the kids where up to, and local businesses relied on local consumers (and local consumers relied on the local businesses). It was a great place to grow up—but I couldn’t wait to get out of there and get to the anonymity of a large metro area and to a university with 40,000 students (where professors didn’t know my name from Adam). I loved it.

But, I can understand why people like the sense of connectedness with their local community and their neighbors. It provides a sense of belonging, place, and meaning.

Now, nearly 30 years later, I live in an inner-ring suburb of tree-lined streets (and some big box stores), in a very modest house, which is only a ten minute drive from my office in downtown St. Paul (in my hometown, people drove—and still, to this day, drive—more than twice that distance to the next town to work in the local window manufacturing plant).

I also revel in the time I spend at our lake home. It’s on a lake that is three miles outside of the small town where Ms. Sven grew up in. I know a lot of the people there; the merchants, the staff at the little art museum, at the historical museum, and at the local library. I like to hang out at the coffee shop or have breakfast at the Birchwood Cafй.

Most of my “stuff” is composed of music-related things and books. And, those are my only real important “things”.

And, I have a career that I like very, very much. One for which I’m perfectly suited. I get to learn something new every day, to talk and work with interesting, challenging, and intelligent people, and to try to solve complicated problems.

Most importantly, the love of my life is my best friend and there is nothing I like better than for her and I to hang out together, alone, for a long weekend up north.

So, I, too, like my life and I wouldn’t change places with anyone else. And—and I think this is important for happiness—I don’t envy anyone else.

Thu, 2007-11-01 11:17

#53

Red Partisan

I think when old inventories have worked their way through the system we will see prices coming down.

The main reason prices are higher here is higher taxes. Canadians love high taxes, so why are they whining about high prices?

Thu, 2007-11-01 11:58

#54

kropotkin1951

quote:

Originally posted by Red Partisan:
[b]I think when old inventories have worked their way through the system we will see prices coming down.
The main reason prices are higher here is higher taxes. Canadians love high taxes, so why are they whining about high prices?[/b]

Gee any actual links to back up this mythology you believe in?

Thu, 2007-11-01 12:17

#55

Pogo

The main reason that prices are any level is because people willingly pay that price (and if it is lower, because someone is willing to sell at that price).

The Canadian price will stay high until people are unwilling to pay it. It has already hit the wall with books (bet you they regret printing both currencies on the back cover now). It will hit the wall in other industries when consumers start refusing to pay the current prices.

1% GST reduction will have no effect in almost all buying decisions. When was the last time you changed stores to save 1%?

Thu, 2007-11-01 12:37

#56

mudman

Some companies are lowering prices:

[url=http://tinyurl.com/3aanxr]http://tinyurl.com/3aanxr[/url]

Sorry

Fixed

[ 01 November 2007: Message edited by: mudman ]

Thu, 2007-11-01 12:57

#57

remind

mudman, please fix your long link, as it gave sidescroll here and on TAT

Thu, 2007-11-01 14:42

#58

Ursa Minor

quote:

Originally posted by mudman:
[b]LTJ: Most people I know would value low beer prices over drug price.[/b]

Two questions:

1. Are you saying that there are doctors out there prescribing beer?

2. When can I get an appointment?

[img]biggrin.gif" border="0[/img]

Thu, 2007-11-01 15:47

#59

Frustrated Mess Frustrated Mess's picture

quote:

So, I, too, like my life and I wouldn’t change places with anyone else. And—and I think this is important for happiness—I don’t envy anyone else.

I am please to hear that, Sven. But the truth is that your quality of life, my quality of life, the quality of life that most of us take for granted is unsustainable and will come crashing down around us if what we value most is cheap. And I think for far too many, that is indeed the case.

Thu, 2007-11-01 22:58

#60

glacier76

So, back to the question...

I don't think anyone ever thinks about GST when it comes to cross-border shopping. When people complain about the variation in US and Canada pricing on a book or greeting card, those prices are pre-GST. So, if the US price is still lower, people will cross the border.

Although, I personally could not imagine doing it. The lineups are way too long. If I happen to be in the US for another reason (watch the Seahawks, visit family, etc), I'll do a lot of shopping. Otherwise, forgeddaboutit.

Thu, 2007-11-01 23:25

#61

Doug

quote:

Originally posted by glacier76:
[b]
Although, I personally could not imagine doing it. The lineups are way too long. [/b]

With e-commerce, there's no need to actually go. Apparently the post office is quite busy with packages coming from US websites.

Fri, 2007-11-02 08:21

#62

arborman

quote:

Originally posted by Doug:
[b]
With e-commerce, there's no need to actually go. Apparently the post office is quite busy with packages coming from US websites.[/b]

Fri, 2007-11-02 08:22

#63

arborman

quote:

Originally posted by Doug:
[b]
With e-commerce, there's no need to actually go. Apparently the post office is quite busy with packages coming from US websites.[/b]

That's the key right there. Amazon will obliterate any attempts to float high book prices here. Ditto anything else available online.

Fri, 2007-11-02 08:33

#64

Stephen Gordon

Just remember to go to Amazon.[b]com[/b]. The Amazon.[b]ca[/b] prices appear to be higher. Strange but (apparently) true.

Fri, 2007-11-02 10:30

#65

arborman

I tend to buy used books as a rule (sorry authors, too poor), but yes, stick to USian sites for the non. Especially avoid Canadian sites of USian companies - no need to pay more for no reason whatsoever.

Fri, 2007-11-02 10:31

#66

Lard Tunderin Jeezus Lard Tunderin Jeezus's picture

quote:

Originally posted by arborman:
[b]
That's the key right there. Amazon will obliterate any attempts to float high book prices here. Ditto anything else available online.[/b]

[img]rolleyes.gif" border="0[/img] That's right. Large American corporations are your friends and allies, working with your best interests in mind. Give them all your money.

Your neighbours would only waste it on food anyway.

Fri, 2007-11-02 11:30

#67

Lard Tunderin Jeezus Lard Tunderin Jeezus's picture

quote:

Originally posted by Sven:
[b]But, how did you arrive at your conclusion in the first place? Easy answer: You don’t know anything about product distribution. Zilch. Zero. So, you make shit up...all the while sounding righteously indignant.
Brilliant.[/b]

I have more than a decades experience in distribution of both computer and consumer electronics, as a matter of fact.

What do you think the retailers margin is on an iPod? Ask your local retailer, on either side of the border - They'll tell you it's significantly less than 10%, generally 5 to 7%, once shipping is factored in.

Fri, 2007-11-02 11:30

#68

arborman

As I said in a later post, I tend to buy used books (from my neighbour's book store, actually).

But on occasion my neighbour's book store does not carry a book that I want/need. The choices are to pay Chapters (hardly local or friendly) a bogus markup because it is 'Canadian', or to buy it online.

Regardless, Amazon and others exist outside my own actions, and will have an impact on the price of books. Which was my point.

Fri, 2007-11-02 11:45

#69

500_Apples

quote:

Originally posted by Lard Tunderin' Jeezus:
[b]I have more than a decades experience in distribution of both computer and consumer electronics, as a matter of fact.
What do you think the retailers margin is on an iPod? Ask your local retailer, on either side of the border - They'll tell you it's significantly less than 10%, generally 5 to 7%, once shipping is factored in.[/b]

They charge 5% more than what it costs them?

Considering labour costs, real estate, electricity, et cetera, it doesn't seem like it would be possible to break even in such a configuration.

Fri, 2007-11-02 12:03

#70

Lard Tunderin Jeezus Lard Tunderin Jeezus's picture

They just pray they can sell a few over-priced accessories along with it. No one makes a living out of selling iPods other than Apple.

Fri, 2007-11-02 12:13

#71

Sven

quote:

Originally posted by 500_Apples:
[b]
They charge 5% more than what it costs them?
Considering labour costs, real estate, electricity, et cetera, it doesn't seem like it would be possible to break even in such a configuration.[/b]

It's because he's confusing [b][i]"gross margin"[/b][/i] with [b][i]"net profit"[/b][/i].

When one is talking about the cost of a product (either from a manufacturer or from a distributor), the difference between that cost and the retail resale price is the [b][i]"gross margin"[/b][/i] (which has to be something in the neighborhood of 40% to 60%, when divided by the retail resale price). After subtracting [b][i]all other costs[/b][/i] (salaries, taxes, insurance, rent, utilities, capital depreciation, interest expense, and a long list of other expenses), one is left with (hopefully) [b][i]"net profit"[/b][/i].

Here’s what I said earlier:

quote:

Originally posted by Sven:
[b]If a product's retail price in the US was $250 (and, hence, according to your claim, at least that much in cost to a Canadian retailer) and if a Canadian retailer was only selling it for $280 (one of my examples above), the Canadian retailer would go out of business in one day. Retail gross margins (look up the term yourself, bright boy) are, of necessity, significantly greater than that (they have to be—or, again, the retailer wouldn't last a single day).[/b]

Fri, 2007-11-02 12:18

#72

Lard Tunderin Jeezus Lard Tunderin Jeezus's picture

That is what you said earlier. And you were wrong.

Fri, 2007-11-02 12:20

#73

Sven

The bottom line is that a substantial reduction in the GST rate (even to zero) won’t eliminate cross-border purchases if the US price of a product is significantly lower than the price of that same product in Canada. And, a stronger CAD only magnifies the incentive to make cross-border purchases.

Fri, 2007-11-02 12:25

#74

Sven

quote:

Originally posted by Lard Tunderin' Jeezus:
[b]That is what you said earlier. And you were wrong.[/b]

Don't take my word for it. Look up the definition of "gross profit" versus "net profit". You'll find that "gross profit" is based on the product's cost.

If you think that a product's cost is 95% of the retail resale price, you know less about this than I thought you knew.

Fri, 2007-11-02 12:29

#75

Lard Tunderin Jeezus Lard Tunderin Jeezus's picture

Come back and apologize after you've spoken to your local retailer.

quote:

The bottom line is that a substantial reduction in the GST rate (even to zero) won’t eliminate cross-border purchases if the US price of a product is significantly lower than the price of that same product in Canada. And, a stronger CAD only magnifies the incentive to make cross-border purchases.

And thanks to free trade making us a tertiary appendage of the American market rather than the centre of our own, such price discrepancies are now structural.

Canadian prices were also generally higher than American prior to the FTA, but at the time it was primarily due to tariff barriers and hidden taxation - with the financial difference accruing on this side of the border, rather than to the south of us.

[ 02 November 2007: Message edited by: Lard Tunderin' Jeezus ]

Fri, 2007-11-02 12:43

#76

Sven

quote:

Originally posted by Lard Tunderin' Jeezus:
[b]Come back and apologize after you've spoken to your local retailer.[/b]

That's akin to saying: "Come back and apologize after you've looked at a sunset" when you're claiming that the sun sets in the east and I'm claiming it sets in the west.

I know what we sell our products for to retailers and it ain't 95% of their retail resale price. We wouldn't sell a single case of product it we tried to sell it to retailers for even 80% of the retail resale price.

But, you won't look up Retail Business 101 principles yourself and, so, you will continue to believe that the sun sets in the east.

Fri, 2007-11-02 12:44

#77

Michelle

I haven't read this thread since my last post in it. Sven, you were WAY out of line up there. I stepped in when he did it, and then afterwards you start it up again? Not even remotely okay.

Anyhow, looks like you're both being civil to each other now, which is good. Please keep it that way.

Fri, 2007-11-02 12:48

#78

Lard Tunderin Jeezus Lard Tunderin Jeezus's picture

BTW, the iPod was one of your examples, one for which there aren't many viable alternatives - so it made a good example for me.

Let me point out that I did not claim that retailers are surviving on 5% margins generally. I only showed that, as I had mentioned, in some cases Canadian costs [b]are[/b] the same as American retail. I also wanted to illustrate that Canadian retailers are not 'gouging' - they are trying to survive on margins as low and often lower than their American counterparts.

The excess profits that we know are being taken are being taken elsewhere.

Fri, 2007-11-02 13:01

#79

Pogo

Average margins change from industry to industry due to the selling patterns and costs associated. For example Jewelry stores have very high margins as their turn rate will be very very low. Grocery stores can have lower margins because they have a high turn rate.

Within industries individual lines or products will have widely different margins. For example exclusive lines will often have higher exchange rates to reflect the reduced competition. Common lines that are price competitive will have lower margins as everyone has to sharpen their pencils or lose sales. A 5% margin (difference between landed cost and selling price) is very low but for items like Ipods it is probably necessary as buyers are extremely price sensitive.

I should also add that LTJ knows this stuff inside out.

[ 02 November 2007: Message edited by: Pogo ]

Fri, 2007-11-02 17:16

#80

bliter

I'll take all the taxes the governments want to give me back but I see a lot of fuss being made over a penny - and there seems a lot of trust that the retailers are going to pass it on.

Here's what I see: The $10.00 item for which I paid $10.50 will now cost $10.40 - just like I picked a dime off the floor on my way out.

Sun, 2007-11-04 19:26

#81

Sven

The idea that Canadians should buy from Canadian companies rather than from American companies, even if product prices are significantly higher, reminds me of the introduction of Japanese vehicles into the US market in the 1970s and 1980s. There was a huge American backlash and a "Buy American" campaign. But, American consumers received a huge benefit by having the option to purchase Japanese vehicles. Prior to the introduction of Japenese vehicles, it would be a miracle if an American car got even close to 100,000 miles before falling completely apart. And, even prior to completely falling apart, they were mobile rust buckets.

I think that the Japanese competition was the best thing that happened to American industry...and the American consumer.

Today, one pretty much has to pay a bit of a premium to get a Japanese car (relative to a comparable American product). But, I'll pay that premium because the quality is measurably better (Consumer Reports consistently shows Japanese cars have greater reliability). American vehicles have gotten much, much better, quality-wise (to the benefit of all consumers) but I think they still lag behind the Japanese companies.

It seems to me that consumers, nearly all of whom have limited budgets, should purchase the best product they can find at the lowest price, regardless of where the product is made or where the corporation is located that sells it (American, Canadian, European, Asian, etc.).

Sun, 2007-11-04 20:28

#82

Fidel

quote:

Originally posted by Sven:
[b]
I think that the Japanese competition was the best thing that happened to American industry...and the American consumer.
Today, one pretty much has to pay a bit of a premium to get a Japanese car[/b]

You can say that again. Who wants to pay for auto worker's health insurance premiums paid to private insurance companies? I certainly wouldn't. Private health insurance bureaucracies are putting more than just U.S. car companies at a competitive disadvantage according to CEO's in the states. A quirk of geography may eventually lead to a "single payer"(Cover the kids ears and cover the flower pot, it's socialized medicine by any other name) health care system in the U.S. No wonder they want concrete walls erecting at the borders!!! And someone will do it because it's more efficient and less costly than private enterprise duplication of the exact same services over and over again with exorbitant CEO salaries to be paid and blue chippers to cater to etc etc What a shamozzle.

And [url=http://www.management-issues.com/2007%2F9%2F27%2Fresearch%2Fis-corporate... report[/url] suggests that all that corporate downsizing and ruthless efficiency is creating a nation of Charlie Chaplin like worker-drones in North America who are unhappy with their two and sometimes three lowly paid, low cognition jobs to make ends meet. It sounds like the [url=http://conservativenannystate.org]conservative nanny state[/url] isn't all what it's cracked up to be.

[ 04 November 2007: Message edited by: Fidel ]

Sun, 2007-11-04 20:52

#83

Sven

quote:

Originally posted by Fidel:
[b]And [url=http://www.management-issues.com/2007%2F9%2F27%2Fresearch%2Fis-corporate... report[/url] suggests that all that corporate downsizing and ruthless efficiency is creating a nation of Charlie Chaplin like worker-drones in North America who are unhappy with their two and sometimes three lowly paid, low cognition jobs to make ends meet.[/b]

"Modern Times" was, in my opinion, one of Chaplin's best films. If you haven't seen it, I recommend it.

Mon, 2007-11-05 12:36

#84

Sean in Ottawa

quote:

Originally posted by Pogo:
[b]Average margins change from industry to industry due to the selling patterns and costs associated. For example Jewelry stores have very high margins as their turn rate will be very very low. Grocery stores can have lower margins because they have a high turn rate.
Within industries individual lines or products will have widely different margins. For example exclusive lines will often have higher exchange rates to reflect the reduced competition. Common lines that are price competitive will have lower margins as everyone has to sharpen their pencils or lose sales. A 5% margin (difference between landed cost and selling price) is very low but for items like Ipods it is probably necessary as buyers are extremely price sensitive.
I should also add that LTJ knows this stuff inside out.
[ 02 November 2007: Message edited by: Pogo ][/b]

I've studied this in my time as well and this description is right on. We talk about those low margin items as "lost leaders" -- in a grocery store, for example, it will be often milk which is often sold at a loss in order to bring the customers in (they know the price of milk and assume deals on other things if milk prices are low so stores sell milk below margin and other items above to make the profit).

Another issue that is not raised often is the question of the currency component to cost and price. For example -- a lot of stink was made about books. US books are calculated in US dollars where they are printed and then are converted to Canadian dollars. In those cases then you should expect to get the US dollar price because it is a real price based on real costs. However, if you look at a Canadian produced book, made from Canadian paper, printed here the Canadian price is the real one and the US price is a conversion from a Canadian reality. You should not expect the US price based only on a previous exchange rate to now be valid just because it is cheaper. The book cannot be produced for that price now that the US dollar is worth less in Canadian funds. That US price was based on what the Canadian publisher expected after conversion. When you are in a Canadian bookstore looking at a Canadian published book please bear that in mind and don't ask your independant bookstore to take a hit or pressure the Canadian publisher to take a hit on a conversion price that was never realistic and completely unrepresentative of the real costs the publisher and bookstore face.

Yes, I have raised the price of shipping here a few times. This was THE reason I stopped publishing books. This factor is huge when comparing to the US as they ship using a bookrate from their distribution centres to their stores. Canada has a mind-numbingly stupid policy with respect to shipping and shipping books in particular. We have no bookrate and our general shipping rates are designed to subsidize the high volume shippers at the cost of the low volume shippers (they don't do that in the US or anywhere else that I am aware of). When this policy was brought in hundreds of small publishers went out of business and the remaining ones had to increase the prices on the books either to pay it out of their share if they included shipping or to allow the retailler a greater share out of which to cover shipping. Obviously consolidation was also necessary which made independent publishers have to give up or give over their inventories to large distributors (that can just as easily go bust themselves taking down the publishers).
This is a situation Canada should be ashamed of. I will always rememerb the few weeks notice we got for an effective 1000% (no typo) increase in the cost of shipping books from February 1993. (Thanks for that Brian, you scum of the earth who also brought the tax on books-- seems some people do not want to see Canadians be informed except by right-wing controlled media.)

[ 05 November 2007: Message edited by: Sean in Ottawa ]

Mon, 2007-11-05 13:41

#85

Sven

quote:

Originally posted by Sean in Ottawa:
[b]I've studied this in my time as well and this description is right on. We talk about those low margin items as "lost leaders" -- in a grocery store, for example, it will be often milk which is often sold at a loss in order to bring the customers in (they know the price of milk and assume deals on other things if milk prices are low so stores sell milk below margin and other items above to make the profit).\[/b]

There's a big difference between a few loss-leaders to bring people into a retail shop and saying that all products in a retail shop have a cost that averages 95% of retail value.

A retail shop cannot survive if the products' cost, on average, represent 95% of the retail price.

Mon, 2007-11-05 13:51

#86

Sven

Here is some [url=http://www.census.gov/svsd/retlann/view/gmper.xls]data[/url] regarding retail gross margins as a percentage of retail price (the average gross margin percentage is about 30%). That average gross margin percentage is understated for most hard goods because of the very low gross margin percentages for automobiles, gasoline and groceries. Outside of those categories, most retail gross margin percentages are between 30% and 40%.

quote:

Originally posted by Lard Tunderin' Jeezus:
[b]What do you think the retailers margin is on an iPod? Ask your local retailer, on either side of the border - They'll tell you it's significantly less than 10%, generally 5 to 7%, once shipping is factored in.[/b]

In any event, no retail sector has gross margin percentages anywhere near 95%.

[ 05 November 2007: Message edited by: Sven ]

Mon, 2007-11-05 14:27

#87

Red Partisan

There is a clear disconnect between 'show' economic data (which shows how well investors are doing) and 'real' economic data (which shows how the non-investors are doing)

Jobs are being lost, and unemployment goes down. People are swamped in debt, and interest rates go down.

If Canadian mining companies pull gold out of Ecuador, that counts as Canadian economic growth. It has little to do with how well Canadians are doing.

Those who were serious about economics for the benefit of human beings might start compiling 'real' economic statistics, to be contrasted with those posted by corporations and aggregated by Statistics Canada. I think these 'real' statistics would be shocking.

Thu, 2008-06-19 06:08

#88

Lard Tunderin Jeezus Lard Tunderin Jeezus's picture

The [url=http://www.thestar.com/comment/article/443346]'Red' [/url]Star hypes market solutions, and ignores structural issues:

quote:

Consumers already have the power to force down prices; they simply need to exercise it. Some consumers are already doing that by boycotting Canadian retailers and shopping in the U.S. The majority, however, will continue to suffer as long as they willingly pay what retailers ask. Their market power lies in their determination to refuse to pay an unjustified "Canadian" premium and their readiness to walk away from purchases when retailers won't slash the price.

Thu, 2008-06-19 14:17

#89

Sean in Ottawa

You need an explanation why things are more expensive in Canada? Ask Canada Post.

Sample rates - these are over the counter public rates off websites but you will get the idea quickly:

Ottawa-Toronto 5lb small package prices depend on speed: $9.48-21.22
New York to Washington 5lb small package prices depend on speed: $1.89 (if it is a book) 7.29 guaranteed two day delivery up to $12.95 next day delivery.

Ottawa to New York based on speed $16.84-79.80
New York to Ottawa: $2.14 (small packet rate)- 58.80 for all bells and whistles.

So as you can see we in Canada get screwed by our post office. Shipping in this country is ridiculously expensive. (Goes up for remote areas as we do not subsidize remote areas any longer with high-volume inter-city mail).

Consider all the implications of these price differences that average more than double but can go up to 500% difference for the same service.

Then consider what it is like for on-line businesses in Canada. By the way, this is also why Canadians have a bad reputation as people who rip off buyers for shipping on ebay- because those folks in the US simply can't believe how insane our postal policies actually are.

Years ago I was told that the issue was we needed to charge more to the smaller volume shippers in order to subsidize deep below-cost discounts to the higher volume shippers- some kind of reverse Robin Hood theme going on.

Anyway, the shipping costs alone explain price differentials between Canada and the US so the next time you hear Harper lecturing Canadian distributors on giving better prices based on the exchange rates ask the PMO what its thoughts are on the screwed up postal service that we, the people of Canada, actually own.

Frig- don't get me started....

[ 19 June 2008: Message edited by: Sean in Ottawa ]

Thu, 2008-06-19 14:33

#90

Pogo

What business would use Canada Post for delivery when you can use Purolator? Better rates, home delivery, state of the art tracking.

Thu, 2008-06-19 14:53

#91

Sean in Ottawa

1) Using a courier cross border causes you to risk having clearing house charges- only UPU members (national post offices) clear goods internally as practice.
2) Purolator is not at all cheaper than Canada Post- We have an account with them at the office, I have had an account with them and done direct comparison. If you send few packages of high value purolator is not a bad option but if you send many packages of lower per-unit value purolator charges will exceed the value of the goods realy quickly.
3) Purolator is owned by Canada Post.
4) In a way the very idea of comparing a courier to a post office should tell you something. Most countries have both courier service for priority speed and secure shipping options and basic mail for lower value transactions. Canada has a post office that so badly wanted to be a courier that it bought one but still competes with its courier arm for sophisticated high-priced shipping options rather than providing basic low-cost mail like most people in the rest of the world enjoy.

A post office in most parts of the world is significantly lower than any courier- in Canada it is just a little lower for poorer service while retaining the same basic market as a courier leaving the regular parcel mail business unserviced. People in Canada hvae done without parcel mail for so long that they can't even tell the difference between courier services and mail services for parcels- either in price or expectations.
In Canada we do need a post office that acts like one and delivers a basic postal service for packages as well as lettermail.

Thu, 2008-06-19 15:04

#92

Sven

I agree with Sean in Ottawa that Canadian shipping prices are very high (at least relative to US rates), at least with respect to books. I purchase a lot of used books and usually pay only about $3 to $4 for shipping when purchasing them from a US book dealer. But, when I purchase them from a Canadian book dealer, the rates are much, much higher than that.

Thu, 2008-06-19 15:55

#93

Sean in Ottawa

quote:

Originally posted by Sven:
[b]I agree with Sean in Ottawa that Canadian shipping prices are very high (at least relative to US rates), at least with respect to books. I purchase a lot of used books and usually pay only about $3 to $4 for shipping when purchasing them from a US book dealer. But, when I purchase them from a Canadian book dealer, the rates are much, much higher than that.[/b]

Nuts that the US ones are international shipment and ours are local yet still much higher.
I buy on ebay and notice that I do have to pay much more to buy from Canadians and I absolutely hate Canada Post and the excuse for a Canadian government we have had since 1993 when this stupid policy was brought in.

Thu, 2008-06-19 16:00

#94

Sven

quote:

Originally posted by Sean in Ottawa:
[b]
Nuts that the US ones are international shipment and ours are local yet still much higher.
I buy on ebay and notice that I do have to pay much more to buy from Canadians and I absolutely hate Canada Post and the excuse for a Canadian government we have had since 1993 when this stupid policy was brought in.[/b]

Is Canada Post subsidized on top of the higher rates to users?

Thu, 2008-06-19 16:15

#95

Sean in Ottawa

There is no government subsidy to Canada Post. The only subsidy is from low volume shippers who pay extra so higher volume shippers -- including bulk admail-- get their stuff sent below cost. Usually this means Canadian owned small business and retaillers get screwed so Canada Post can service big foreign-owned companies.

The big ones screw us because they can and the small Canadian ones because they have no choice.

Thu, 2008-06-19 22:30

#96

Pogo

quote:

Originally posted by Sean in Ottawa:
[b]
2) Purolator is not at all cheaper than Canada Post- We have an account with them at the office, I have had an account with them and done direct comparison. If you send few packages of high value purolator is not a bad option but if you send many packages of lower per-unit value purolator charges will exceed the value of the goods realy quickly.
[/b]

Our analysis is the exact opposite. Our Purolator rates are way lower. There is a wild card in that if the customer is outside the Purolator regular service network the charges go up. When you are talking internet sales there is a high likelihood that a higher proportion of customers will be from outside the service area (being far away from stores is what pushes them to the net).

Will GST cut stop cross border shopping?

Pages