Americans seem to be getting a better deal from Lee Valley.

[Robert]

Based on conversion rates we Canadians are getting the short end of the stick, from a Canadian company.

[Buck Turgidson]

Yes, but your beer is better.

[Paul Kierstead]

I noted that as well. In some fairness to LV, setting a price is extremely difficult for an annual catalog business; you have to take some guesses as to what the exchange rates will be for the whole year and take some kind of weighted average (business is not the same the whole year). Purely web businesses have it easier of course; they can change prices daily.

Given that my experience with LV has them pegged at extremely honesty and good service, I will give them a break this time and assume that they believe that the C$ will go down (or american dollar up, either way...) in the following months. I would like to hear from them though.

PK

[Stephen M]

So, let me get this straight; you're pissed that your the loon is worth more these days?

BTW, you could use a US credit card and place order in US$ if you really wanted to.

Come to think of it, my brother-in-law Jaques (In Montreal) had me order a center-finding rule from them on my last order. I thought He just wanted to save the shipping :-)

Robin has addressed this directly (I think) within the last year in this forum. If you google it I'm sure it's there somewhere.

They set prices annually and take there lumps one way or another with the exchange rates. I'm sure that they do not only have to be concerned with US/CDN rates, but also the currencies of suppliers.

Such is life in a world economy.

[Robert]

It could hurt them. I rarely order from the US because of border hassles but some of the prices right now make it downright enticing.

I spent a large chunk of my Christmas funds at Lee Valley last year without even looking around much at all. But right now I'm spending a lot of time at

:)

[Robin Lee]

Hi Stephen -

Thanks for the clear and correct explanation - yes - we set our rates in June, and hold for a year...

Not only do we eat exchange differences, but cost increases from vendors - and with the price of steel and fuel increasing, it's not insignificant.

The only "error" in your post is that Robert can't purchase from us in Canadian dollars - the currency we trade in is based on the destination (or point of delivery).

Cheers -

Rob Lee

[Robert]

Actually at the moment it's their Canadian customers taking the 'lumps'.

Unless it's possible to use a Canadian credit card and order in US funds. Anyone try this?

[toller]

A few years ago I drove up to Rattlesnake Point in Ontario to go climbing. Around Hamilton my partner and I discovered that we thought the other was bringing the rope. We stopped at a sporting goods store and bought a US made rope for C$135. Turns out the price here is US$135 and the rope company didn't bother to print a Canadian price list! So, they were selling in Canada at a 25% discount.

Just in general, MEC in Toronto sells many products at a third less then they are sold for here, but they have an agreement with the manufacturer not to ship to the US.

So, it cuts both ways.

[Robert]

It would cut both ways if Lee Valley had Canadian competition but they don't. At least not in mail order or online. If I lived in a large city this probably wouldn't be an issue. I will likely spend around $1500 online this Christmas between companies like Futureshop, Mark's Work Wearhouse, and Lee Valley. I rarely visit the stores, in fact I've never seen a Lee Valley and haven't been in a mall in 10 years. I shop online, mail order, or not at all.

[Stephen M]

No. Since presumably most of LV's expenses are Cdn$. Perhaps this is overly siplistic but if LV sets their prices based on a certain gross profit margin, the Canadian Customer pricing stays "right-sized".

As the value of the loon increases, LV's margin on a US sale goes down. Because LV is ultimately paid in Cdn funds; LV takes it in the shorts. Of course if the Loon goes down LV gets a bonus.

The Canadian customer does not get "shafted". Perhaps they do not get the same attractive pricing which is currently available to the US market, but they are not paying a premium.

I just hope that the Loon does really well for the next couple months while LV recalibrates their prices. Then when the pendulum swings back the other way, I'll use my Wife's Cdn credit card for all of my LV purchases.

*God I love LV* so many ways to buy great stuff.

-Steve

[Robin Lee]

Robert -

Are you comparing our prices with our competitors in either country, or just just contrasting our prices in US and CDN dollars?

AFAIK, we're competitive in either country....against vendors in that country.

We can either float prices daily and make the exchange rate work exactly - or fix prices and tolerate exchange differences, until we can correct them - which for us, is annually.

Cheers -

Rob

[Robin Lee]

Lot's have tried - none have succeeded....

No one's "taking lumps"...well, besides us. American customers are getting a deal .... as Canadian customers do when the exchange runs the other way...

Cheers -

Rob

[Slowhand]

I don't think I want your headache... er, I mean business for Xmas anymore

SH

[Robert]

I guess the difference is that most American companies have a fixed US price but for Canadians they apply the exchange rate. This has caused some items from the States to become pretty good bargains.

Or just offer free shipping in Canada until Christmas.

[Robert]

Maybe a little 'free shipping' to sweeten the pot? As you probably know many companies offer free shipping at Christmas. I take advantage of these free shipping offers especially from the big book stores.

[Ba r r y]

Whaa?

Have you actually tried American micro brews, or just Budweiser and Miller products?

Barry

[Prometheus]

No one's taking lumps ordering from LV at all, as far as I can tell. Sure beats the heck out of Woodcraft or Rockler!

[Rob Lee]

So we're taking a beating on exchange losses in the US, and offering free shipping helps - how?

We don't operate shipping as a profit center now (which means our current shipping charges do not cover the cost of shipping, let alone "handling")....

Fraid you're stuck with fixed, already competitive prices - and excellent service.

Best we can do....

Cheers -

Rob

[mp]

A lot of imported goods are priced and purchased in US currency, regardless of the point of origin and the final destination. For example an engineer's square made in India and shipped directly to Canada might be priced and paid for in US dollars, even though no one in the US is involved in manufacturing or distribution.

If the value of the Canadian dollar rises against the US dollar, Lee Valley's inventory takes a hit from Canadian sales and a double hit from US sales.

[Dave Balderstone]

Curse you.

And, where's my Saskatoon store?????

djb