|
How great a deal do you get in U.S.? |
|
|
|
|
Wednesday, 28 November 2007 |
Don't look now but prices for a variety of goods are falling right around us - just before the holiday season, no less.
As it appears the Canadian dollar will stay strong at least for the time being, many Canadian retailers are reacting by decreasing their prices.
There has been a lot of consumer pressure placed on Canadian retailers, and many have responded.
Canadians felt they were being taken advantage of on some items, like books, magazines and greeting cards, which display both American and Canadian prices, with Canadian prices being much higher.
With our dollar soaring above the American greenback, the tables have indeed turned for shoppers on both sides of the border.
The sub-prime mortgage crisis in the United States and burgeoning debt being racked up through its military operations, the American economy is in decline.
How long that decline will last, however, may be up for debate.
The Canadian economy, on the other hand, is doing very well.
American shoppers may not be feeling the impact of their weakened dollar if they stay close to home.
The fact is, the American economy is still the most competitive economy in the world, and prices for consumer goods are still relatively low.
It is just for Americans traveling abroad, prices for goods have increased as their dollar drops.
The opposite is true for us, as Canadian shoppers have been flocking south to take in deals while our money is at par.
But just how great of a deal are we getting across the border, and what is the actual cost?
Our local car dealerships contend it is still better to shop at home for vehicles. Manufacturing standards, special features and warranty issues are some of the reasons they quote.
Some companies are even offering consumer price adjustments to help car shoppers get over the sticker shock of seeing the lower American prices.
In the end, consumers have to weight the pros and cons of shopping across the border this holiday season.
Sure, prices may be a little bit lower, maybe even a lot lower on some items but every purchase down south comes at a price.
Just as retailers have been fighting the drain to Lethbridge for years, shoppers taking business to the United States takes money out of our community.
No one wants to get gouged, and there may be certain items where it makes financial sense to buy them in the United States.
Consumers have to make informed decisions and if Canadian retailers are willing to play ball to stay competitive, the shoppers will stay at home. |
