Try this experiment. Go to your friendly bank and pick up $100 U.S. Then go into your nearest Chapters. Pick up a book by Oprah Winfrey called O’s Guide to Life. The price is on the cover: $29.95 U.S., or $37.95 Canadian. Hand over $30 U.S. The cashier won’t take your American money. The vague excuse is that inventory was ordered and paid for before the dollar hit parity. A cashier at another store punts the problem off to the manufacturer. If the manufacturer sent a rebate, then yes, we’d lower the price.
And this policy is not just in book stores. It’s all across the board. Which is why Finance Minister Flaherty is out there trying to convince Canadian retailers to lower their prices to reflect the rise in the dollar. (It hit $1.04 relative to the American dollar Friday.) Flaherty says we should shop around for the best prices.
Shouldn’t the Canadian consumer get any benefit from this situation?
What’s your experience with the favourable Canadian exchange rate?