Pricing in Canada

[cgingras]

In the last few weeks, I've had some questions about the pricing of items at Slot Car Corner Canada compared to the pricing at Slot Car Corner (US). The introduction of the Piranha motor last week (US$8 and CA$10) brought out some more questions. Here's a quick explanation from the Great White North!

Most distributors are in the US. That means that most products I buy are paid in US dollars and are shipped from the US (a lot of distributors have some kind of free shipping program when a reseller buys more than $XX in merchandise; this free shipping thing very rarely applies for Canadian resellers). When a commercial shipment goes across the border, there are also customs brokerage fees to be paid (on top of the usual taxes, which I'm not even considering here).

And of course, the currency conversion also takes place. PayPal, credit card companies and the banks always add a 2.5 to 3.0% fee on the exchange rate.

So, let's do some quick math. :twocents-mytwocents:

As of this morning, the exchange rate is 1.1265 (12.65%). Add 2.8% for the bank conversion fee (15.45%). Then, shipping from the distributor adds (on average) 5% to the total amount of the order (20.45%). And the brokerage fees are also around 5% (25.45%).

So, for all purposes, every item that I buy as a reseller here in Canada is costing me around 25% more (in CA$) than the cost of the same item in US$. For the Piranha motor, that's where the difference between US$8 and CA$10 is coming from.

Now, for most other items, the pricing difference on the website is only 10% (all Slot.it parts, Quick Slicks tires, etc.). And for some other items, the difference is even less than that. That means that buying most items from SCCC in Canadian dollars costs less than buying the same items in US dollars. What's not to like? 8-)

Of course, the exchange rate is always a moving target (moving down more than up these days! :( ) and obviously, pricing on the website can't be adjusted daily. So, I always do things so my customers are on the good side of the equation... it's not easy being a Canadian slot car retailer. But I'm having fun anyway! :lol:

[Retro Racer 44]

Thanks for this, Christian. It is always good to know where our money is going every time we Canadians have to pay more. So much for free trade, eh?

[cgingras]

[CCC]

I've only ordered 4-5 cars so far, but when you consider shipping fee's, duty, etc, when ordering from the US its a good deal. Shipping was always fast.

Curtis

[cgingras]

[chappy]

Christian, first off I feel that what we see in price difference is more than made up for in the service and interest you provide your friends( customers) .
All one has to do to appreciate the value of your slot shop, is buy something from our neighbors to the south.
Exchange rate , bank fees , postage , customs duties , or brokerage fees, and a wait of 2 weeks.
Just like you have to pay to bring the products in , the individual would have to pay also.
Excuse me if im lazy, but id rather you do all that stuff, and I can paypal you in Cdn$ and have the item in 2 days.. Its a no brainer for me.
Thanks Christian for providing us with such a great store and service.
No explanations needed.
Bob