Canada vs. U.S. pricing: Why we often pay more (CBC Marketplace)

this week on marketplace price war higher or lower in Canada Canada versus the United States they are 10:47 1797 we're shopping on both sides of the border to reveal where you can save big bucks I'm afraid we're being gouged and we go undercover shopping or a new car the real reason you're paying thousands more than Americans so are they using scare tactics that's exactly what it is the cost of being Canadian I'm on a road trip heading south from Vancouver to Bellingham Washington to do a little price comparison I'm on a shopping trip too but staying close to home in Toronto you're telling us you're fed up with the price gap between Canada and the US sending email after email thing is Canadians want to spend their money at home but end up spending billions in the US but why are we paying more especially when our dollar is worth about the same as theirs Erica and I are about to test how much it's costing us dueling shoppers competing for the best deals at some of the largest retailers that operate in both countries Target Walmart and Home Depot Eric are you doing well I'm here in Bellingham and I gotta say I got a good feeling I think the prices down here are gonna be a lot lower than they are in Canada are you kidding me a call bring bring that on I'm ready for that game girl we'll see who wins this price war we'll be in touch throughout the day using our smartphones for some price checking and chatting on items like toy health and beauty products electronics and home fixtures but first we've pulled together a crowd at the CBC in Toronto they'll play our pricing game higher or lower and they know it's a game Canadians don't win very much it doesn't feel right at all you know feel like we're getting ripped off you be like shopping we're going on a shopping trip in Canada and the US and we're going to look at different kinds of products and compare prices first of all have a show of hands how many people think this item will be higher priced in Canada pretty overwhelming higher in Canada let's go shopping and see if they're right my first target in Bellingham well you know target or thar she it's well known for its low prices in the US and it's made quite an entrance in the Canadian market to their motto expect more pay less so what can we expect in the toy department I'm looking at the triple track twister track set say that fast three times Tom you say it three times fast okay let me take a look okay how much 49.99 49.99 okay this equipment here 3249 this toy is on sale in both countries but costs 48 percent more in canada in case you're wondering even at regular price we're still losing so what do we find when we check out targets health and beauty products we've heard that's another category where the price gap can be ugly hair cares thanks we find a popular brand and suss out the price okay enough with the puns even with the exchange rate that day Canadians are paying an extra twenty one percent for sleek and shiny hair so it's true there's a big gap in price when it comes to beauty items like this conditioner we asked Target to explain the price gaps we're seeing they tell us there are a variety of factors that result in a price differential higher fuel costs higher labor costs bilingual packaging before we leave Target we hit the electronics department we've heard electronics is one category where consumer pressure on the manufacturers forced them to match their us prices with ours I check out a PlayStation 12 gig console one ninety nine ninety nine two hundred bucks for that wonder much that is in Bellingham hmm how about that the same price and when you factor in the exchange rate we're paying about four percent less in Canada so for once Canadian shoppers can put one under the wind column bottom line is though we're on the losing end of most price wars to explain why we bring in someone with the inside scoop Doug Stevens spent 15 years as a retail executive and is now a marketing and branding consultant we hear a lot that doing business here is more expensive this distribution it's wages taxes but does that justify these big differences is it justified no is it country pricing what's that you ask simply put country pricing is an unwritten rule among retailers charge Canadians more because they always have and we always pay without a fuss our Canadians simply being charged more because we are in Canada because it's a smaller marketplace since that's really the core problem how do they get away with it we as consumers accept it and we as consumers don't put enough pressure back on the retailers that are selling us these things to say you know we're not going to stand for that back at our CBC pricing game we reveal what we found so far on our shopping trip how do you feel about the fact that something as simple as a toy set cost so much more here well it's a huge difference and I guess I guess like a lot of people want to go to the USA now because you can get like stuff for cheaper I've been finding cheaper stuff in Bellingham so far but will I do more saving at our next stop home depot these days more and more people are do it yourselfers looking for deals on home fixtures so we go looking for some deals - ok I'm in the toilet Department I guess we call this the Super Bowl but I'm dumb okay so it's the Kohler Santa Rosa I found it so what what price do you have of that one okay so down here the price is 298 here 377 377 yeah and you know what darica this is actually on sale the regular price is 419 that's right Canadians are seeing 21 percent more money going down the drain for the very same item we ask Home Depot to explain the price gap we've seen they say we work hard to be the value leader in the Canadian home-improvement market and we adjust retail pricing to reflect that position we will be reviewing the pricing on these products well how about that Home Depot is gonna do a price check on all the products we compare in between Bellingham and Toronto the third chain we're hitting is the biggest of them all I head into a Toronto Walmart and Erica reports in from Bellingham hey Tom we've been doing so much walking today I picked up something I thought you might want to use these little Sol inserts with gel in them so they feel really good under the feet all right bet and not a bad price they are 10:47 in Bellingham carry mine right here okay that's the same one how much and they are 1797 1797 that's a lot of money yep that's a 65% step up in the Canadian price not so comforting after all next on our list at Walmart we're going big I'm looking at the samsung 60-inch LED TV every man caves dream alright I check that out too okay what did you come up with not TV is 998 what is it in Toronto 1298 1298 yeah $300 difference these tvs recently had their prices adjusted in both countries still if you want to go big screen in Canada you're going to have to fork over big green 25% more we've seen some drastic price differences at Walmart so far but I've got a home advantage now with our next product hauls cough drops you know them right but did you know this check out the bag weather tropical fruit or honey lemon they're made in Canada looking at hauls made in Canada cough drops beautiful 287 and you so what do you want to wager is your price gonna be better than mine or worse it has to be better they're Canadian for crying out loud well you would think but for this package of cough drops Tom it's a dollar 47 oh come on that's the cat praise almost for the folks at our CBC pricing game hard to swallow here's the u.s. price puck 47 same bag in Canada and it's made in Canada what do you make of that I'm not quite sure why such a big price difference for a product that's made in Canada how can Canadians be paying more than Americans for something made in Canada we ask Walmart to explain the price differences particularly why halls cough drops are 88% more expensive in Canada even though they're made right here in a statement they tell us price differences between retailers in Canada and the US are not acceptable and need to be addressed we are working extremely hard with our suppliers to negotiate the best possible deals for our customers so we ask the makers of halls and they say a multitude of factors all working together can influence price it is not just limited to one factor ultimately the retailer sets the final price of any product it offers to consumers so retailers blame manufacturers manufacturers blame retailers you could point the finger in a lot of direction everyone at the end of the day is going to try and make the money that they're making so what's a Canadian shopper to do in this price war retail insider Doug Stevens has a strategy don't be afraid to pull out your mobile device and see what that product is available out on the open market see if you're being gapped you know and and if you are then take whatever measures you need to take to to push back on the retailer that's doing it so how do we do on our shop Athan when we tally up our receipts I've saved more than four hundred dollars that's plenty of gas money because now we're about to go shopping for a new car and you won't believe what we find can I sell you a brand new car excuse me can I sell you a brand new car in Canada you so I'm gonna stand the boat here we're gearing up with hidden cameras still in the states as our cross-border shop continues the nice clear picture this time we'll be checking out the second most expensive purchase most of us will ever make a new car if you see the ones in the back end we're testing in two American cities just across the border Bellingham in Washington State and Buffalo New York to see what kind of deals we can get compared to Canadian prices and we're not the only ones shopping around in Vancouver katelyn Maine's looking to why is she in the market for a new car that does not look cool oh because this used to be Caitlin's dream car she loved every part of it the style the color even the built-in Vaughan's did you have a name for it yeah I was a daisy but looks more like a lemon it seems now that's cause a few months after buying it I was running fine for a while and now the engine is shot that's it that's it so it can't drive anywhere nope got to be pushed if you would like to move it this time round Caitlin's thinking a new car would mean fewer headaches it's definitely appealing have you ever owned a new car before no for sure not so it's I mean obviously this the factor of how nice it is but just like the reliability at this point employ would be nice according to Steve Rogers if Kaitlyn wants a deal on a new car she might want to check out the prices south of the border you must be Steve I am America hi Erica quite the ride you've got Roger specialty is finding cars cheaper in the United States and bringing them back to Canada I bought one for my wife the car was 60,000 in Canada and I paid forty thousand in the US for the same car the exact same car we do a little checking online ourselves and find lots of great deals - even after we factored in the exchange rate the manufacturers price for a Subaru Legacy 23 for 95 in Canada same vehicle just across the border mm laughs and there's the Honda CRV it's made in Canada so it must be cheaper here right turns out it's about 3,000 less in the states same goes for the Dodge Grand Caravan it's also made in Canada but sells for 7,000 you know I have a hard time with the fact that I'm paying more as a Canadian just because of where I live and sure enough even the New Beetle Caitlyn would like is cheaper here is a brand-new 2014 beetle in Canada that car is 24,000 and chains right but in Bellingham about an hour's drive here in the state that exact same car is three thousand dollars cheaper really have you ever thought about going to the states to buy a new car it had never occurred to me even though like obviously occurs to me for other stuff to see if Caitlyn really could save a bundle we asked around at those American dealerships first stop the Honda dealership in both cities looking for that CRV made in Canada about 3,000 cheaper here but what are we here Honda does my and it's not lost Honda does not let us sell new cars to Canadian won't sell to Canadians and when we test the Toyota dealerships can I tell you the brand new car excuse me can I sell you a brand new car in Canada strike two the rejection continues at Chevrolet I can't sell you a new car down here in Buffalo and Bellingham we hear the same thing at dealer after dealer Wow what do you think about that that they will not sell the Canadians yeah after I just heard about this awesome deal now it's snatched away from me just as fast that sound fair not at all not fair but not new to Georgina he's the head of the Automobile Protection Association and hears a lot about car companies giving Canadians the cold shoulder to Canadians it's galling when a car made in Ontario costs more and here than in the United States we show Eenie this memo we get our hands on from a car manufacturer a few years ago it strongly discourages American dealers from selling to Canadians says if they do they'll no longer be eligible for program payout or bonuses what do you think of a memo like this it's very handy and evidence he says that car Giants north and south of the border are working together to keep Canadians from buying some cars at cheaper prices if we are going for free trade for the car makers then it should to some degree be free equally free for the consumer under orders not to sell to us but dealers in our test give us all kinds of other reasons for why that's the case so we put them to our expert Steve Rogers starting with the dealer who tells us reason number one it's the long whatever international tariff laws or transaction was then u.s. citizens can only buy a new US Canadian citizens on okay whatever there's no such thing as a Canadian law to prevent a car from from causing hmm how about reason number two you have to live in America if you have a residency in the USA or something you can find a card I don't see how that comes into play with buying a car at all or maybe the problem is reason number three the warranty isn't valid in Canada so you could not sell me a new Santa Fe you wouldn't have a warrant some manufacturers do not honor the warranty in Canada but very few but you'd hate to be the one that doesn't have the warranty true as we search for the reason Canadians are turned away at dealerships only a handful give us the straight goods reason number four the car companies make us do it but they're afraid of everybody from Canada we just come here and buy your cars take them back home and to make sure prices stay high in Canada US dealers who sell the Canadians tell us they can't or reason number five will lose our franchise if Honda finds out that's what happens potentially we could lose appeal yep it's a system that shuts Canadians out of thousands in savings all is strictly just a fictitious line that prevents us from driving across why is there this huge discrepancy in cost it's not impossible to buy a new car in the United States but some car companies sure make it difficult even for a pro like Steve it's absolutely a battle every single - every single time and you're the expert mmm one of the few exceptions to the rule Ford they'll sell a car to Canadians no problem but you have to pay upfront so why are we paying more for cars than our American cousins no one wants to talk about it not the feds and not the car companies we asked Canadians shut out of cheaper deals in the States just doesn't make sense to Caitlyn that's crazy it seems like that's always happening and have other surprises are jacked up all the time for her the car company capers just mean one thing I think I'll be hopping near the bus again how much do you like that especially at this time of year and not so much you

Channel: CBC News

Views: 668,479

Rating: 4.6891999 out of 5

Keywords: Marketplace (Award-Winning Work), Canadian Broadcasting Corporation (TV Network), price, canada, United States Dollar (Currency), cross-border shopping, gouging, free trade, cars, shopping, retail

Id: dLGcI0PtE2k

Length: 18min 57sec (1137 seconds)

Published: Mon Sep 08 2014

Reddit Comments

[u/n0ahbody]

This is a real issue. But they neglect to factor in the exchange rate in most of the products they're comparing. The prices are actually cheaper in Canada now. For example they compare a product that is $379 in Canada and $299 in the US and claim it's cheaper in the US. No, it's cheaper in Canada with a 1.3 exchange rate. You can't just look at the price stickers. You have to factor in the exchange rate. You also have to factor in how much it costs you to drive to the States and back, or else the rip off UPS charges you pay if you have it shipped to you.