[~AP~]

MSRP - Canadian$ VS American$

Okay.... Forgive me if this has been posted before, but I want some answers on this.

Why is it that with our Candian Dollar being as strong as it is/has been that we still have to pay so much for everything that has a Canadian and American "equivalent" on price tags ?????????????????????

All you smart, money/business concious people: please enlighten me.

Thanks!

 

[JamieJames]

Because it's an opportunity for manufacturers to improve their profit.

 

[adam112]

Venture to guess that msrp is set yearly while the exchange rate fluctuates through out the year. I know at our company we don't jump to adjust our exchange rate whenever it moves.

 

[michael]

Supply.
Demand.
Competition

The Manufacturer is pricing to a market. If a motorcycle is priced @ $7,000 and it competes with another manufacturer's motorcycle priced @ $7,000, it will not drastically change the price.

In that market.

Change the market, change the competitor's prices, change the cost of which it takes to supply a bike to that market.....whole new pricing structure.

It's a business, a "for profit," business.
Profit is not a 4 letter word.:laughing
Obscene profit is a self correcting situation.:thumbup

 

[~AP~]

I appreciate what you're saying.... but

We're talking $3000 here. Not like a couple bucks.

 

[michael]

I appreciate what you're saying.... but
We're talking $3000 here. Not like a couple bucks.

My point exactly.
A "couple of bucks," is one thing, $3000 makes for a very strong case to buy in the US and import.
The problem corrects itself when the manufacturer sees it's canadian sales dropping, and a lot of warranty, or other work, being done in dealerships very close to the border.
Local dealers say "what the?" and the manufacturer takes another look at their pricing.
Takes a while, but they are in the business of developing a loyal, and happy following......or we (the consumer) just go somewhere else.

 

[~AP~]

Good point! That was my next question... "Why not just buy in the states?"

I know nothing about duty and registration and inspections etc etc but I would assume it's easier if you are buying a brand new "vehicle" instead of a used one.

Thanks... Good information.

 

[navarcht]

It won't change until more people start buying their bikes in the states and import them. Once the dealers/manufacturers start seeing reduced sales and stagnant stock it will correct itself.

-Unless of course the Americans elect an administration that doesn't screw them over and the US $ starts recovering. then it's just a temporary thing.

 

[Iceman_19]

People buying in the states wont help anything. Its simply a supply vs. demand issue.

California has a larger bike market then all of Canada, and they are almost equal in population. ONE state, equals Canadas population, and still has a larger market. Add in 49 more of those, and you see why bikes are cheaper down there.

 

[Guest]

People buying in the states wont help anything. Its simply a supply vs. demand issue.

California has a larger bike market then all of Canada, and they are almost equal in population. ONE state, equals Canadas population, and still has a larger market. Add in 49 more of those, and you see why bikes are cheaper down there.

LA has a larger population than the top 2 provinces in canada. california's population is larger than that of canada. california's economy is the 5th largest in the world.

next it will want to have its own weather patterns and physically separate from the rest of the united states.

but yes, 300+ million people is a better market than ~31 million.

 

[Iceman_19]

LA has a larger population than the top 2 provinces in canada. california's population is larger than that of canada. california's economy is the 5th largest in the world.

next it will want to have its own weather patterns and physically separate from the rest of the united states.

but yes, 300+ million people is a better market than ~31 million.

Hahaha.


But yes, my point exactly. 1 state dwarfs all of Canada. How can we compete? We pay more for the product, which in turn gets passed on the consumer. Its the same with ANYTHING you buy in Canada.

 

[Purplekawi]

California is like one BIG city apparently. glad we live up here. whomever said that the manufacturers sell according to exchange and adjust if the market drops in a region is correct. manufacturers don't fluctuate things according to our fluctuation dollar. if a demand for re-evaluating is necessary to keep sales flowing then it does so. our dollar has only been strong for the past year so it may be coming very soon. hard to say though. if this strong dollar is a stable platform rather then a trend it will be done. buying in the states may be cheaper but it depends on what $ you put on your time cause it's def more time consuming then walking into Orca Bay and picking up the latest Zook. my dad used to drive around town to save $5 on an item and i used to laugh at him. i still do.

 

[Dalma]

This even applies to the car manufacturers. The Canadian pricing is much higher simply because we will pay more not because it costs more to sell here.

 

[Iceman_19]

California is like one BIG city apparently. glad we live up here. whomever said that the manufacturers sell according to exchange and adjust if the market drops in a region is correct. manufacturers don't fluctuate things according to our fluctuation dollar. if a demand for re-evaluating is necessary to keep sales flowing then it does so. our dollar has only been strong for the past year so it may be coming very soon. hard to say though. if this strong dollar is a stable platform rather then a trend it will be done. buying in the states may be cheaper but it depends on what $ you put on your time cause it's def more time consuming then walking into Orca Bay and picking up the latest Zook. my dad used to drive around town to save $5 on an item and i used to laugh at him. i still do.

Some people only look at the bottom line, and not what is involved.

 

[Guest]

i always got a kick out of people in the toronto area paying $700 delivery for a chrysler built in the west end. they coulda taken the bus to the bramalea assembly plant and driven one off the line.

 

[JamieJames]

This pricing difference doesn't only apply to vehicles. You'll see it on clothes, electronics, etc. It's to take advantage of the relative exchange rate move and profit from it.

When the Canadian dollar was low we were used to paying those prices for goods. When the Canadian dollar appreciated, we're still comfortable paying those prices; the manufacturer doesn't need to lower the Canadian dollar price to stimulate demand so they absorb the profit.

 

[Guest]

a lot of clothing still has import duties on it. upwards of 16%, then pst and gst on top.

 

[JamieJames]

Duties aren't accounting for the price difference.

Look at most multinational companies' press releases for their quarterly earnings results. Many of them disclose that their gross profit margins are being enhanced by a stronger Canadian dollar (or they don't mention it) or other foreign currencies.

 

[Guest]

duties will contribute a small amount to the price difference. those costs are hidden from and passed on to the consumer. it's not a deal breaker on buying, but at 16%, it's like paying tax twice.

the usa has vastly different tarriffs than we do.

but i agree with your points on the exchange rates. if we are happy paying arm and leg for our products, there is no reason for the manufacturer to refund us a finger.

 

[Tattoodles]

I asked the same question to many dealers myself. Canadian bike distributors are answering back with rules that they won't warranty motorcycles sold in the U.S. and registered in Canada.

Sons of bitches.