Whats with Canadian vs US price gap

[t6lock 24]

I tried to do some searching but couldn't find much about this information. Sorry if there's another post about this I couldn't find, would like a link if it does exist.

Anyways, I live in Canada 20 minutes from the border so I can pick up stuff in the states. I know my equipment and use mostly medium to high end gear. I do quite a bit of research on the gear and always wondered why it's so much cheaper in the states, especially when comparing the two, more stuff is made in Canada. Is it the demand is higher in Canada so people try to make a bigger profit? Or Americans have less demand so gear is cheaper? And with the dollar at par, what's stopping me from getting stuff in the states and saving $100+ each on multiple items. I see the x60 skates online on american sites are now $400 where here they are still $700. I wanna get a pair of one95 gloves that are $100 on american online stores but $200 here in Canada.

I know some people must think I'm a noob for asking these types of questions, and I don't blame you :)

[adalbort 1]

I tried to do some searching but couldn't find much about this information. Sorry if there's another post about this I couldn't find, would like a link if it does exist.

Anyways, I live in Canada 20 minutes from the border so I can pick up stuff in the states. I know my equipment and use mostly medium to high end gear. I do quite a bit of research on the gear and always wondered why it's so much cheaper in the states, especially when comparing the two, more stuff is made in Canada. Is it the demand is higher in Canada so people try to make a bigger profit? Or Americans have less demand so gear is cheaper? And with the dollar at par, what's stopping me from getting stuff in the states and saving $100+ each on multiple items. I see the x60 skates online on american sites are now $400 where here they are still $700. I wanna get a pair of one95 gloves that are $100 on american online stores but $200 here in Canada.

I know some people must think I'm a noob for asking these types of questions, and I don't blame you :)

I actually think your question is a very good one. I live in Europe, where equipment is much much more expensive. One could say that has to do with our higher taxes here, and shipping costs. But that argument would not apply to Canada, so your question is sound. I look forward to hearing an answer too :)

[Seven6 0]

What I can tell you is that it isn't the Canadian retailers taking higher margins. Their costs are proportionally that much higher from the manufacturers than their US counterparts. A lot of that has to do with higher duties on certain products and materials in Canada. Skates for example have an 18% to 20% duty on them on top of the higher costs. Then certain materials, nylon for example are taxed much higher so there has always been a large cost disparity on bag, pant & glove costs between Canada and the US.

The ups and downs of the Canadian dollar will never affect retail pricing as the Vendors commit and forecast their dollars at the factories overseas 12 to 18 months out so by the time the product hits the sales floor the costs have been long set in stone.

There are other factors at play but these are a few of the reasons.

[Chadd 916]

This topic pops up all the time, and usually degrades quickly. Let's hope it doesn't happen this time.

The short answer is that Canada taxes gear imports more than the US does. Because of those taxes, the prices are higher in Canada.

[Larry54 243]

This topic pops up all the time, and usually degrades quickly. Let's hope it doesn't happen this time.

The short answer is that Canada taxes gear imports more than the US does. Because of those taxes, the prices are higher in Canada.

That doesn't explain why items Made in Canada are sold at a higher price in Canada than they are in the US, though.

[IniNew 53]

That doesn't explain why items Made in Canada are sold at a higher price in Canada than they are in the US, though.

There's not a whole lot actually made in Canada anymore as far as retail goes.

[Larry54 243]

There's not a whole lot actually made in Canada anymore as far as retail goes.

True, but the few hockey items that are made in Canada are sold at a higher price in Canada than in the US.

[zebra_steve 11]

Don't you pay "VAT" taxes or some other huge % sort of sales taxes to the Canadian Govt at the time of sale? Here in the US we might have anywhere from none to maybe 10% sales tax that goes to Big Brother (we are supposed to estimate and send it in for online sales when the vendor doesn't charge it but who know how many actually do send it). End result is lower price due to lower taxes added on. Not gonna get into the political side of the taxes, just that they may exist and be a big part of the reason.

[wrangler 157]

Don't you pay "VAT" taxes or some other huge % sort of sales taxes to the Canadian Govt at the time of sale? Here in the US we might have anywhere from none to maybe 10% sales tax that goes to Big Brother (we are supposed to estimate and send it in for online sales when the vendor doesn't charge it but who know haw many actually do send it). End result is lower price due to lower taxes added on. Not gonna get into the political side of the taxes, just theat they may exist and be a big part of the reason.

Yeah, the question is how much, if any, tax, is levied on Canadian exports to the U.S. If that amount is significantly less than the tax a Canadian would pay on a Canadian purchase, then that may be your difference, there. Usually this is part of the terms of a tax treaty between the countries involved, so political pressure can have an effect.

The fact that some U.S. retailers can't ship certain goods to Canada indicates that a disparity in taxing retail sales does exist.

[M.W. 0]

Another factor is that Canada is enormous, but has very few people in it. I'm not sure about the hockey industry, but in the bike industry where I work, you end up with the double whammy of that causing high transportation costs, as well as distributors buying in smaller volume.

[shotty 7]

theres an 18% duty on sporting goods, on top of the fact that most canadian entities of large companies usually operate separately from their international or US counterparts... meaning they may have slighty higher costs due to the lower quantities of goods they "import", among a whole host of other things.

[Larry54 243]

Don't you pay "VAT" taxes or some other huge % sort of sales taxes to the Canadian Govt at the time of sale? Here in the US we might have anywhere from none to maybe 10% sales tax that goes to Big Brother (we are supposed to estimate and send it in for online sales when the vendor doesn't charge it but who know how many actually do send it). End result is lower price due to lower taxes added on. Not gonna get into the political side of the taxes, just that they may exist and be a big part of the reason.

Put it this way, in addition to the much higher retail prices in Canada compared to the US, add around 15% sales tax on top of that.

[ponder 0]

Since most gear is made in places like China anyways, it wouldn't be as much about trade between Canada and the states as it would be each country's import taxes on the goods when they're shipped in from China. Canada tends to be a bit more protectionist, the States a bit more free market, maybe when a piece of gear is shipped from the factory in China to the distributor in the US/Canada there's a low import tax for it to enter the States, but a high import tax for it to enter Canada?

I have nothing really to back this up, but I also feel like part of the issue is a sort of pricing hangover from when the Canadian dollar was relatively less valuable. Before it made sense to charge $130 CAD for something that would cost $100 US in the States, as that used to be the same amount of money in either country. Now that the Canadian dollar is relatively stronger you'd think Canadian prices would come down, but if people can avoid dropping their prices they will, especially in a market dominated by just a few manufacturers. I'm not saying the vendors are pocketing all that extra cash, but that every step along the way products going to Canada are sold at slightly inflated prices because nobody wants to lower their prices just because the Canadian dollar is (maybe temporarily) stronger.

[Captain Sane 2]

I could be wrong (probably am), but my guess is that the difference used to be because of the exchange rate being so in favor of the USD, but when the U.S. economy tanked, the Canadian dollar became pretty much even with the USD, but retailers haven't (and won't) adjust their prices in Canada.

[HockeySavants 5]

My friend said that Vapor XXX sticks are selling for 199 still in Europe, that must suck

and the reason is that european shops for the most part don't offer "clearance" for the most part like North American stores. If they buy an item at a certain price, they expect to get the anticipated profit in return.

[Hermans 9]

Labour costs and payroll taxes paid by the employer at the retail level are fairly steep in most Canadian markets and that will have an effect on pricing to some degree.

The previous discussion on sales tax is a moot point. Canadian prices, by law, are shown pre-tax as are most USA prices so other than exchange it should be apples to apples.

[stuie7 6]

My friend said that Vapor XXX sticks are selling for 199 still in Europe, that must suck

and the reason is that european shops for the most part don't offer "clearance" for the most part like North American stores. If they buy an item at a certain price, they expect to get the anticipated profit in return.

199 What? You'd be very lucky to get a top-end stick like a Vapor XXX (although old) for $199 in Europe, 199 Euros is more realistic.

One thing I've noticed when it comes to buying gear across Europe, the prices are pretty much even across the UK, Sweden and the Czech Republic. However, the demand for the gear, average salary and taxation system in these countries varies greatly. It shows poor foresight on behalf of the companies who set their prices, the average of 200 Euros for a high-end OPS in the Czech Republic is much higher to that of the UK or Sweden (Obviously none of these countries use the Euro, I'm just trying to simplify it for arguments sake); meaning that your average Czech is going to have to work MUCH LONGER to get the same money for the same stick.

[nickerjones 8]

Also don't forget that Canadian side of equipment manufacturers (ie Bauer warrior Easton) have made it virtually impossible for big name Internet discounters to sale gear. Places like hockey monkey here in the states can Sell gear here for cheaper than a lot of places. You can't do it there do to company restrictions.

[Larry54 243]

Also don't forget that Canadian side of equipment manufacturers (ie Bauer warrior Easton) have made it virtually impossible for big name Internet discounters to sale gear. Places like hockey monkey here in the states can Sell gear here for cheaper than a lot of places. You can't do it there do to company restrictions.

What do you mean by "company restrictions"?

[Viking 1]

I get why there would be some price difference (transportation costs, import duties and taxes); but even given that, the price difference seems pretty huge. If the '$225/$275 top-end OPS ratio' were accurate, it would be a pretty good improvement, actually. Currently, an S19 is $230 on hockeymonkey, and $320 on Pro Hockey Life's website. I don't believe that the import duty, and transport cost amounted to a nearly 30% price difference. Stuff takes forever to get marked down in Canada too - with the S19 still in mind, a lot of stores are still selling the S17 at full price, or very close to it. It's hard to believe there's any reason behind all of this other than just "Canadians will pay more." I won't - for price reasons, I try to rely on e-bay, closeouts, and pro stocks for a lot of my stuff, and try to just really get a lot of use out of everything I buy - but I guess some will.

I don't know how anyone affords to play hockey recreationally in Europe. When I was a kid, I remember a team of Swedish kids were at my rink for a tournament, and my dad talked to some of their parents, and they said they were buying their kids full sets of equipment while they were here, as well as buying 2 or 3 pieces of some items in bigger sizes for when the kids got older just because the stuff was so much cheaper here.

[Larry54 243]

I get why there would be some price difference (transportation costs, import duties and taxes); but even given that, the price difference seems pretty huge. If the '$225/$275 top-end OPS ratio' were accurate, it would be a pretty good improvement, actually. Currently, an S19 is $230 on hockeymonkey, and $320 on Pro Hockey Life's website. I don't believe that the import duty, and transport cost amounted to a nearly 30% price difference. Stuff takes forever to get marked down in Canada too - with the S19 still in mind, a lot of stores are still selling the S17 at full price, or very close to it. It's hard to believe there's any reason behind all of this other than just "Canadians will pay more." I won't - for price reasons, I try to rely on e-bay, closeouts, and pro stocks for a lot of my stuff, and try to just really get a lot of use out of everything I buy - but I guess some will.

I don't know how anyone affords to play hockey recreationally in Europe. When I was a kid, I remember a team of Swedish kids were at my rink for a tournament, and my dad talked to some of their parents, and they said they were buying their kids full sets of equipment while they were here, as well as buying 2 or 3 pieces of some items in bigger sizes for when the kids got older just because the stuff was so much cheaper here.

Why else would the big manufacturers forbid U.S. online retailers to ship their products to Canada?

[Chadd 916]

Why else would the big manufacturers forbid U.S. online retailers to ship their products to Canada?

Because Canadian retailers have to pay more to get it. They can't afford to compete with the US based dealers and websites. This conspiracy theory stuff is the reason all the other topics on this have been shut down, let's not have it happen again.

[Larry54 243]

Because Canadian retailers have to pay more to get it. They can't afford to compete with the US based dealers and websites. This conspiracy theory stuff is the reason all the other topics on this have been shut down, let's not have it happen again.

Well, I never said that the Canadian retailers were pocketing the difference.

[zebra_steve 11]

Labour costs and payroll taxes paid by the employer at the retail level are fairly steep in most Canadian markets and that will have an effect on pricing to some degree.

The previous discussion on sales tax is a moot point. Canadian prices, by law, are shown pre-tax as are most USA prices so other than exchange it should be apples to apples.

When someone tells me, "I paid $200 for this (fill in the item).", then I figure that is the money they put down on the counter, not the price quoted on the tag.... Maybe you think differently but I consider any money that left my possession is part of the "cost" of buying said item.

[SolarWind 23]

I personally wonder if the situation is slowly improving since it appears that the gap is closing?

I used to buy from the US in the past, but looking at my recent purchases:

2011 youth Dolo: $59 from Monkey, I got it for $60 @ cyclone taylor

skates vapor X20 youth are 79 down south, but ~90 here - given the free sharpening, warrantly + heat molding makes it a comparable if not a better deal

even for the top of the line stuff: TotalOnes are 899 list in Canada (799 in the US), but you can always get a pretty good discount on these if you ask, and again given the other goodies (starpening, molding etc) it makes it a comparable buy

Not to mention it's much more pleasant to buy local where you can feel the stuff, try it on etc versus shipping & picking it up from the US.