Dollar for dollar
Ever since our dollar soared above parity with the U.S. dollar there has been talk about high prices and those retailers and companies that are not reflecting the loonie’s change in status.
Some are starting to come around now. Even a few major retailers have announced they’ll drop prices here. But is it worth crossing the border to do a little shopping now?
I’ve never been a big cross-border shopper. I’ve been a few times but - speaking only for myself and not in judgment of anyone who goes regularly - I find that the pain of waiting at the border and the restrictions on what can come back take a lot of the fun out of doing it by car, into New York State. I also believe in doing most of my shopping near where I live and put my cash into the local economy and support the jobs of my neighbours. But that’s my own perspective.
But this past weekend on a quick trip into the U.S. I discovered that business news can travel slowly, depending on where you go. I was putting five dollars worth of gas into a motorcycle and I was told it would cost me double. Yes, two of our dollars for one of their dollars. Five bucks would cost me ten.
I said with a smile, “But our dollar is worth more than yours!”
The woman at the counter replied, “But I don’t KNOW that!”
I stared at her stupidly for a minute. And then I handed her a ten. And then I decided that news doesn’t travel as quickly as I think it does.
Pity.
October 22nd, 2007 at 10:05 am
Pity, dollar for dollar.
Pity that you and all other Canadians travelling to the U.S. are getting caught by some clueless retailers and don’t seem aware on how to defend yourselves from this type of rip-off.
If you use your debit or credit cards you are not subject to the wims of a retailers’ conversion rates but that of your financial institution here in Canada which will be based on the conversion rate on the day of the transaction.
Happy U.S. shopping.
October 22nd, 2007 at 4:31 pm
Hey Allan,
I’m aware that using my credit or debit card would bypass this issue. I actually conducted this test with Canadian currency as an experiment to see what would happen, lest you think I went through the weekend happily handing over double what I should have, for all of my purchases!
Cheers,
Lisa
October 24th, 2007 at 7:26 pm
Hey Lisa,
Didn’t assume that you went through your weekend handing out double the actual price of anything and everything you bought. This is a very hot topic these days in the news and my comment was more aimed at your loyal readers who may not be aware of these often overlooked considerations.
The last time our dollar had this level of respect, Canadian consumers made the same complaints about not receiving a fair exchange when shopping in the US.