If I buy the veritas edge trimming plane... In CDN it's $180, in US it's
$125. Know go to your fav currency conversion website and do the
conversion, it's $13 CDN or $10 US cheaper to buy it in US dollars. I
checked a few other items and found various differences in prices. But
always the same result, the item was cheaper in US currency. I found that
the difference wasn't consistent, therefore I can rule out a mathematical
conversion bug in the website. Kinda sucks when a Canadian company sells at
a higher price to its own country men than to the US especially Canadian
I also noticed that the Lie Nielsen edge plane is cheaper or the same price
as the veritas (depending on which currency you view it in). I think I'll
buy the Lie Nielsen
Well, the Canadian dollar has been gathering strength lately. Maybe the Lee
Valley prices haven't been adjusted yet to reflect that change. With
fluctuating prices, there's always going to be one country price that is
more expensive than the other. You're never going to get exact parity.
We price once per year, for each catalog, and hold our prices. We certainly
try to forecast exchange rates as best we can. When we priced last summer,
the US dollar was stronger than it is now. New product (being added now) is
being priced at a working rate of 1.3 .
In addition - operating cost and fulfillment costs (including taxes) are
different by country - just because it's convenient to order from multiple
coutries, doesn't mean that pricing structures are as mobile. Normally, our
US pricing (under a stable exchange rate) is a few percent higher than
Canadian pricing - which reflects the additional processing work we perform
to operate across the border, and the duplicate facilities and operations we
have to perform.
Believe me - US consumers were not happy with the Veritas price increases
they received this year...
It's also human nature that your reaction is YOU are being
overcharged....the truth is - the US market is being undercharged - and we
(Lee Valley) are absorbing the difference.
Overall - the US market has not yet seen the effects of the drop in
purchasing power of the US dollar - few Pacific Rim suppliers have passed on
price increases, having absorbed losses in the hope that the exchange
differences would be temporary...that is starting to change now, with
products priced in US dollars starting to increase in cost.
Robin, I hear you. As a small internet company that sells primarily in the
US we price our product in US dollars. We have been unable to increase our
prices because of competition. This resulted in over 20% reduction in our
Canadian income after conversion. It is starting to hurt.
Yup - what people also miss is that we've also dropped our prices (overall)
in Canada too - so US revenue takes a hit, and Canadian gross revenue also
takes a hit, albeit a smaller one...guess that's what one calls making the
worst of a bad situation ;)
Volume's doing just fine fine though (insert wry smile here) - this is the
year of doing more work for fewer dollars...
To the OP: that LV prices once per year actually saves them money, from a
business standpoint, and that savings is passed along to you. If you expect
them to alter their prices with every hiccup in the exchange rate, then you
will see a rise in prices in both currencies. If is ain't broke...
I just had to reply to say that I think it's really cool of you to
follow up like you did. From working with other companies (and not
just ww'ing stores), the OP's comment would have gone unnoticed. But
I really like the fact that you take the time to respond to customer
issues...and even just some "run of the mill" inquiries--in the NG.
It shows that this isn't just a business for you, but something you're
personally interested in and passionate about.
And, as an aside, the same comments go for Steve Knight (C;
Being an economist, I occasionally check the difference, just for the
hell of it. A little more than a year ago, when the loonie was going
down to $US0.62, Canadian prices at LVT were considerably lower than
in the US. Now that the US dollar is tanking, Canadian prices will be
higher until the next price adjustment. So we do win sometimes and the
Yanks lose and vice versa.
LVT is stuck in the middle. They're losing on their Canadian-made
stuff selling to the US, but they might be winning on imported stuff
sold in Canada that is paid for in $US (depending on when they have to
pay for it and whether they have hedged their currency risk). But, in
the past, when the loonie that was dropping, they certainly took a
hit. These are the effects of exchange rate risk, a real problem for
any exporter outside the US.
One way of reducing that risk is to buy or sell futures contracts (or
options on futures) in currencies. That way, you can be guaranteed a
certain exchange rate in the future. Then you let the speculators take
True. For you Murricans, now is the time to buy all that LVT stuff
you've been drooling over. Sorry, Robin, but it will increase your
revenue, assuming you're not selling at a loss. :-)
Also, a number of Pacific rim countries, China being the prime example
(and some Latin American countries), have tied their currency to the
US dollar. So there might not be much of an effect on US retail
prices, unless those countries give in to US pressures to revalue
Replace "no" with "yk" for real email address
My apologies to you Mr. Lee. I should have email you directly as some had
Let me clarify why I said what I said. When I noticed the difference the
first thing I attributed it to was the strengthening CDN dollar and
weakening US dollar... But! I checked other items and found that the
differences between the US price and CDN price were not consistent as they
should be if it were simply due to rising and falling dollars. E.G. Part
Number: 05P27.01; US price: 65; CDN price: 89; US to CDN conversion: 86.
Part number: 05P27.02; US price: 74; CDN price: 99; US to CDN conversion:
98. Part number: 05P22.01; US price: 99; CDN price: 139; US to CDN
conversion: 131. Part number: 05P25.01; US price: 159; CDN price: 219; US
to CDN conversion: 210. Part number: 23P01.01; US price: 79; CDN price:
115; US to CDN conversion: 104. If these numbers make any sense... The
difference ranges from $1 to 11 on the US to CDN conversion but the these
conversions are not proportional to the part numbers over all price,
therefore I ruled out currency rate fluctuations.
On a side note. After reading the descriptions a little bit closer on the
Lie Nielsen and Veritas edge planes the Veritas appears to be a more
improved and over all a better plane than the Lie Nielsen. I won't hold out
for a gray iron version - if anything your admitting to the discontinuing of
the bronze version will only increase its collectability in the future.
Any chance Veritas will be including a skew angle plane with adjustable
fence anytime in the future?
True - but where the cost increases are going to come from are the external
resources purchased for production - scrap steel, ore, machinery, tooling,
and most of all - transportation... while tied to the US dollar, their US
dollars buy less....
Perhaps you prefer that there are US-owned companies operating in Canada
that sell to the US at _higher_ prices than they sell to Canadians. The
result is that US retailers near the border can't compete with sellers
in Canadian cities - cross-border shoppers prefer to drive and save.
Free trade ain't fair trade.
PS - As I understand it, Canadians pay for those drugs in the long run
with preferred patent laws. Keeps the generics away longer. That's part
of the deal that the govt made with the drug companies. Lower profits
for a longer period.
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