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Thursday, 15 January 2009 14:08

Canadians often complain that products are cheaper in the US.

Since I was in the US (New York city) over New Years, I got a chance to compare prices and, frankly, aside from gas, everything else was pretty much teh same price in $US as in $CDN. And, given the current exchange rate, making it about 25% more expensive.

 Some examples:

Product In New York ($US) In Montreal ($CDN) Comment 
 Gas$1.85 /gallon $0.72 / L ($2.72 / gal) Ok, gas is cheaper. Considering it is now $0.84 / L in Montreal)
 Arm&Hammer Toothpaste$5.39 $2.39 Whoa! I should smuggle a crate of these into the US and sell them out of the back of my car for an obscene profit. 
 Bottled water (500ml)$1.69 $0.89-$1.39  You can get them 3 for a dollar at Dollarama 
 Pokemon booster pack$4.99 $4.99  
 Bakugan$6.99 $5.99  
Apples$1.69 / lb $1.69-$1.99 / lb  
Clementines (5lb, 2.3Kg)$7.99$5.99-$6.99 
 XBox 360$299.99 $299.99  
 Playstation 3$399.99 $399.99  
 DVDsassortedassorted Same price in $US as in $CDN (making then 20% cheaper in Canada, or 25% more expensive in the US)

Maybe prices are cheaper in border towns, but my experience this time (and previous times) has not shown any tremendous savings by crossing the border.

Comments

avatar tin-tin
0
 
 
it actually depends on the currency that you earn :)
avatar richard
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Obviously, dollar for dollar comparisons between different countries is never exact, but ...

Canada and the US have pretty much the same products (the US has more variety because of it larger size), but, on the whole, I tried to compare similar products (or identical products).

The US GDP per capita tends to be higher than Canada's, however, that certainly doesn't explain why toothpaste is more than double the price.

In other cases, you would expect US purchasing volume to be able to reduce cost of goods.

Never mind that most of Canada's trade is with the US, so we get a lot of US products up here - especially fruits and vegetables (though not the clementines).
avatar ghee
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its better to live in Montreal then.

i wonder what are Pokemon booster pack and
Bakugan?

nice to see you again in the blogosphere,Richard!
avatar richard
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Actually, it is better to live in Ottawa, prices are even cheaper there.
avatar CG
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The grass simply always looks greener on the other side. It is said that stuff is cheaper in Russia (which is only 70 km away) but it only applies if you are buying vodka or cigarettes as everything else is cheaper here...
avatar richard
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Sometimes the grass looks greener. Often times, people forget to consider the true cost of living, focussing on only one aspect. It is not uncommon for people living in poorer countries to hear that the minimum wage is (say) per hour and imagine how good their life could be if only the could get to Canada, without realizing that, in Canada, per hour is a miserable wage and certainly not one you can support a family on.

There are other factors affecting cost. 20 years ago, people used to point at how cheap electronics goods (like TVs) were in the US, but ignoring the fact that the US TVs came with only a 1 year (sometimes only 90 day) warranty. Whereas in Canada, a 5 year waranty was the norm. It costs extra to cover the warranty. Now, in Canada, we only have 1 year warranties and the prices are commensurately cheaper.
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