A U.S. dollar coin and a Canadian loonie. The Canadian dollar hit par with the U.S. dollar on Sept. 20, 2007, for the first time in almost 31 years. (Doug Ives/Canadian Press)
In Depth
Consumers
The rising loonie
Where are the price drops?
Last Updated October 23, 2007
CBC News
As the Canadian dollar surged past parity with the U.S. dollar this fall, retail prices on this side of the border remained — for the most part — stubbornly stuck at levels above those south of the border.
But as consumer pressure for lower prices grew, there were a few signs that some prices could be coming down.
Days before federal Finance Minister Jim Flaherty was to meet with members of the Retail Council of Canada to talk about the problems with prices, Wal-Mart and Zellers announced they would cut prices on some goods to reflect the rise of the loonie.
We asked our readers to send us their stories of price-cutting retailers. We've received well over 400 responses. But very few of them mentioned price drops.
Dil Joseph was pleasantly surprised when he went to a local bookstore and found the magazine GQ priced lower for sale in Canada than in the United States.
Other lower prices included:
| Product | CDN price | U.S. price | Submitted by |
|---|---|---|---|
| 8GB Apple iPod nano | BestBuy.ca $193 | BestBuy.com $199 | Kevin in Winnipeg |
| Comics | Same as U.S. listed price at Carry-on Comics, Waterloo, Ont. | Curtis B | |
| Comics | Same as U.S. listed price, Silver Snail Comics, Toronto | JCM, Toronto |
With prices resisting the downward pressure, it's not surprising we heard many tales of cross-border shopping trips.
"I wish this could be about a price drop! Yesterday, Oct. 22, the cost of crossing the bridge from Lewiston, N.Y., to Queenston, Ont., was $3.00 US or $3.50 Cdn, collected on the Canadian side," Ed Long wrote.
We were inundated with examples of significant price differences.
| Product | CDN price | U.S. price | Submitted by |
|---|---|---|---|
| LEGO Mindstorms NXT | $350 | $250 | Ian - Edmonton |
| Michaels Arts and Crafts - Halloween sign | $13.49 | $7.99 | Lisa - Toronto |
| Puma running shoes | $119 | $70 | Vlad - N.B. |
| Bowflex Ultimate 2 | $3,099 | $2,299 | Daniel S. |
| Canon Pixma mp610 all in one printer | $300 (Best Buy) | $170 (Circuit City) | Hank - Calgary |
| Arc'Teryx Theta AR jacket | $650 | $450 | David - Edmonton |
| Hidden Hitch trailer hitch (made in Canada) | $259 | $139 | Mike Lewis, Victoria, B.C. |
| Panasonic Shaver ES8043 | $179.99 | $79.99 | L - Calgary |
| UGG brand shoes | $225 | $130 | Craig - California |
| Weber S-320 gas bbq | $1,049 | $869 | Jay - Vancouver |
| Graco stroller-car seat combo | $299.99 | $162 | Abdul - Ottawa |
| 2008 Nissan Pathfinder SE | $52,900 | $36,900 | Sukh - Brampton |
Dave Weisgerber from Edmonton tells us that some people are using the price discrepancy to turn a profit.
"I can't speak to who is actually dropping prices, but I know several people going south and buying Harley Davidsons. They bring them back by trailer and sell them privately in Canada. Average profit per bike after expenses is about two to four thousand dollars."
We'll give the final word on prices to D.B. from Winnipeg:
"Beans! Nothing explains the cross-border pricing problem better than Old El Paso Refried Beans. At a major grocer in Winnipeg, the price of a 14-ounce can is $3.49. In the U.S. a 28-ounce can of Old El Paso Refried Beans is $1.29 — but it was on sale for 99 cents. Per ounce, the Canadian price is more than SEVEN times the price in the U.S.A.!"
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