You see patriarch wasn't really complaining about slow shipping, he was just
sorta pointing it out.
Not really a complaint, just an observation and a suggestion how to resolve it
in his favor.<g>
Well then I'm no longer complaining about Canadians getting the shaft on Lee
Valley prices either.
I'm just pointing it out, making an observation.<g>
IF I had a complaint, it wasn't that shipping was slow. It was that I
couldn't get instant gratification.
Shipping has so far always been as promised, and very reasonably priced.
Were I to order by telephone, and not by the web site, I likely COULD have
gotten faster shipping methods. But I didn't, I don't, and I still think
they, LV, do a great job.
It is clear that Lee Valley has decided to charge higher prices to
Canadian consumers harder because the Canadian market is simply less
competitive than the US market. I am a Canadian living in the US and
longtime Lee Valley buyer/supporter. When the 2004/2005 catalog came
out, I was struck by the very high spread between US and Canadian
pricing. An example is the Canadian-made Veritas Low Angle Block
Plane - $99 in the US $139 in Canada (Implied exchange rate of
$1.404). In June 2004 the US dollar was $1.32 Canadian, 8% lower than
the spread implied by the catalogue differentials. The Dollar hasn't
closed at $1.40 since August 2003. Hard to imagine the catalogue
pricing is based on some proprietary view of future exchange rate
changes, but Lee Valley could hedge away currency risk in any case.
If you really want to see how hard Canadians are getting boned, check
out Bosch appliances, or, Tegs tools prices on most things, but Fein
tools in particular, for a cold douche. By the way, I don't believe
in the concept of "fair" prices. Companies are in the game to
maximize profits, if Canadians have fewer options, it follows that, in
general (not General, btw) they will face higher pricing.
It may seem clear to you but it is not to me.
Could be other reasons. Perhaps the cost of getting the goods to Canada is
higher than getting them to the US shipping warehouse. I don't know if any
tarriff or duty is involved.
I do know we ship a lot of goods to CA at US prices and the customer is
paying more in total than the same thing sold in the US by the time he pays
I have enough to keep me busy running my own business so I'm not going to
try to run Lee Valley and make policy for them also.
There is not much room for interpretation here. The item in question,
as I stated, is made in Canada. I chose the block plane as an example
to isolate everything but the exchange rate and any remaining
arbitrary cost differential. If anything, it should be more expensive
in the States, since it is made in Canada. Seems unlikely it could
cost less to get to the good to Canada when it is made there. I am
not making a moral statement, nor a political one, just pointing out
the economic reality driving the price difference.
yeahbutt. you are comparing todays's exchange rate to pricing that was set
on an exchange rate that was probably set some time ago. Rob already told us
that they set that in June, but that may be '03 in this case once you figure
in the lead times for catalog production.
According to the Bank of Canada:
June 1, 2003 1.3685
June 1, 2004 1.3695
So basically we're talking about a 3% difference between their pricing and
the exchange rate at the time the prices were set.
I just don't see where the there is a conpiracy to screw the locals here.
On 29 Oct 2004 07:46:54 -0700, firstname.lastname@example.org (JohnD) wrote:
Robin has made it perfectly clear Canadians pay more because the market supports
He also made it clear he can't lower the Canadian price because he need the
higher profits to subsidize the lower prices he charges Americans.
It's business. If Lee Valley can become a big player in the US they don't really
need Canadian customers.
Does the scale and geographic diversity of the market have no effect?
Fixed costs, specific to the country, spread over a smaller sales base?
Recall also, in the US, Lee Valley ONLY has the web/catalog sales model to
support, without bricks and mortar retail.
Subsidized health care? Technical support lines in French Canadian? Local
Doing business across ANY border is a puzzle. This is one reason that
NAFTA was proposed, and, in some form, instituted. Notice just how easily
that project went together.
Notice how almost all threads devolve to politics?
Understanding pricing decisions in different, yet related and connected
economies is inherently political.
And it seems only in contentious election cycles that politics is a
Politics is the very messy process whereby people make decisions on how
they will deal with a complex, uncertain world. Thank whatever belief
system you espouse that we have those options.
Funny, I live in Ontario, I don't even *have* an employer, yet I get
Health Care covered. Two explanations:
- You are dead wrong
- You two are talking about different things. "Health care" from a
"plan" such as is offered by an employer, is additional health care
which covers such things as dentistry, travel coverage, a portion of
eyewear and prescriptions (especially). These things are not covered by
the government. The government plan covers operations, doctors visits,
etc; mostly everything except the ones I listed. Travel coverage is a
bit weird and too complex to go into here. The employer does *not* pay
for this care; it is out of conventional gov revenue.
Third alternative - you don't understand.
OHIP is payed for by employers. Unemployed are still covered. Self
employed have (had?) a loophole that let them off the hook as well.
At one time the OHIP costs were split 50/50 employer/employee and
unemployed had to pay directly. Now it is 100% employer and the
unemployed get coverage regardless.
You're right - I left out the federal part (the ever declining part
until recently) and whatever comes out of general revenue. However,
to the earlier poster's comment, the employer does not get off scott
free. There are costs to the employer, though likely lower than that
paid to private insurers by US employers.
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