As the Canadian dollar continues to rise, one Nova Scotia business is slashing prices to keep customers from heading across the border.

"We have to drop the prices. We have no alternative," said Darren Young, owner of Bluenose RV in Bridgewater.

The Canadian dollar hit a new 31-year high Friday, closing in on the $1.04 US mark.

However, this hasn't necessarily translated to lower prices in Canadian stores. From books to cars, there is still a huge price gap and many Canadian shoppers are travelling to the U.S. for cheaper goods.

Wal-Mart Canada and Zellers announced Friday they too are cutting prices.

Bluenose RV orders all of its trailers from Indiana. With the loonie now topping the American dollar, it costs less to bring them to Nova Scotia.

Young said he plans to pass on those savings.

"The customer is the only who decides where they're going to spend their money and today with the internet, everything's accessible to everybody, so you have to be competitive," he said.

A year ago, Young was selling a nine-metre Wildwood trailer for about $26,000. But when his costs dropped by 21 per cent last spring, he lowered the price by $4,000.

And it's not just the big-ticket items. When a truckload of trailers comes from the United States, Young also orders generators.

"The cost from my supplier in Indiana where I pick up my trailers is approximately $400 less than what I can buy them here in Canada wholesale," he said.