Looney value - prices should be down

[Karlin]

Due to the rise in the value of the Canadian dollar [aka "looney"], the cost to consumers in Canada for goods from the USA should be going down.

Prices are NOT going down for those goods, the retailers are keeping the new-found profits for themselves. Maybe if we asked every store manager to lower prices wherever the cheaper costs for imports allows... maybe if we ask real nice?

Ha Ha, Riiiiight

 

[Toro]

It generally takes about 18 months or so for movements in the currency to manifest in consumer prices.

 

[gc]

...the retailers are keeping the new-found profits for themselves...

If that were true, you (or anyone else) could open up your own store and charge less than everyone else, and everyone would come to your store, making yourself (or anyone else) a nice profit.

OR, it's the in the best interest for retailers to lower their prices below their competitors, and again everyone would go to them and they would make a nice profit. Why do you think Wal-Mart is so successful?

Supply and demand...it's that simple.

 

[IdRatherBeSkiing]

This was last months news. It is supply and demand. We are still silly enough to demand stuff from Canadian retailers and the price of gas is high enough to make the trip to Buffalo not quite worth it. If the price of gas goes down expect to see more cross-border shopping, plummet in demand, and then the Canadian retailers whining to the government.

Right now they are all choosing to keep the profits. If store B does not reduce their prices, store A doesn't have to either as long as we Canadians are stupid enough to buy from either. If we buy from the internet or road trip from store C in Buffalo, A & B will be forced to reduce their prices.

 

[Just the Facts]

How do you delete a post?

 

[Dreadful Nonsense]

In the last year imports went from a 65 cent dollar to buy to a 95 cent dollar it's really almost 30 cents on the dollar.....if you bought a korean computer for a grand last year it should be 300 bucks cheaper this year...plain and simple....

 

[Just the Facts]

It generally takes about 18 months or so for movements in the currency to manifest in consumer prices.

Increases in the value of the dollar take 18 months to manifest, decreases result in higher prices just in anticpation of the decrease, the value doesn't even have to actually fall - quicker than instantaneous.

 

[Dreadful Nonsense]

How do you delete a post?

edit to the point of 4 characters....been doing a lot latlety and am good at it

 

[gc]

Our dollar is compared to the American dollar. Is it that our dollar is increasing, or that the American dollar is decreasing, or both? Compared to the Euro, our dollar has gone up...but not by that much it seems.

 

[IdRatherBeSkiing]

The only other factor in higher prices is high gas prices. Shipping costs would be higher now. Of course that would affect the States as well.