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  • More blockades for Canadians going South to shop

    US shopping not easy
    Canadian bargain hunters face roadblocks
    Deborah Tetley , Calgary Herald
    Published: Saturday, October 20, 2007
    Canadian shoppers bargain hunting south of the border for big-ticket items are seeing a growing number of roadblocks erected in front of them.



    As the rising loonie makes shopping in America cheaper by the day, some dealers have been ordered not to do business with Canadians. Calgary's Carla Abraham wasn't going to take no for an answer when she went shopping for a Honda minivan that at $32,000 was thousands cheaper in Montana.



    She got in just under the wire before Honda ordered sales to Canadians be shut down. "If we were talking a $1,000 or $2,000 difference this would not be an issue," Abraham said. "But we're talking more than $9,000. Sorry, I am not that patriotic." Canadians bought a record 112,826 vehicles in the U.S. last year - a number that continues to spike as the dollar remains strong.




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    Font:****Analysts predict that number could increase to 160,000 this year. Canadian buyers aren't the only ones frustrated. Ben Eisinger, owner of Eisinger Honda in Kalispell, Mont., says his manufacturer's abrupt decision last week to prohibit cross-border new-vehicle sales to Canadians will cost him tens of thousands of dollars. "Honda has forgotten the most important element in all of this and that's the customer," said Eisinger, who says he has more than two dozen vehicles languishing on his lot ordered for Canadian buyers, mainly from Alberta.



    "Because of the sheer volume of Canadian orders recently, the manufacturer just stopped it, cut it off - no more sales across the border." Despite the manufacturer's new policy, Eisinger honoured the deal with Abraham, since her transaction was nearly complete, he said. She is taking ownership of her new, American-bought minivan this weekend. "I was damned if I don't and damned if I do," said Ben Eisinger.



    "I hate to say it, but if I didn't do it, someone else would have." It's not only vehicle sales causing a stir. While Honda, Toyota, GM, Acura, Ford, Audi and a growing list of automakers are denying Canadian exports, it's becoming increasingly difficult for Canadians to buy snowmobiles, watercraft and ATVs in the U.S. Quebec-based Bombardier Recreational Products came under fire this week for its regional distribution policy that prohibits American dealers from selling their lower-priced products to Canadians.



    In some cases the price difference is 40 per cent. Bombardier dealers in the U.S. say the company hiked its punitive measures aimed at stopping Canadians from going to the U.S. to buy its recreational vehicles as the loonie reached parity in late September. Bombardier had always required its American dealers to charge Canadian customers a 7.5-per-cent surcharge for purchases but earlier this month the manufacturer told dealers they had to charge 7.5 per cent or $1,250, whichever was higher. A few days later, Bombardier imposed a $3,000 surcharge and a few days after that simply prohibited all sales to Canadians.



    "It's turned into a very touchy situation for us," said Dean Lingelbach, owner of One-Way Marine and Motor Sports in Helena, Mont., which sells Bombardier vehicles. He says about eight per cent of his customers are Albertans - with the call volume increasing daily since late September, when the loonie was first on par with the U.S. dollar. "The prices for Canadians are outrageous, when you look at ours, but I understand the manufacturer not wanting to cut the throats of their dealers up north," Lingelbach said. Robert Taylor, who owns Taylor Bros.



    in Great Falls, is encouraging Bombardier, automakers - even other RV retailers - to reconsider their policies. "The motels here are full every weekend with Canadians looking for a fair deal," said Taylor. "It would be a good move for our economy." Indeed, protecting the interests of Canadian dealers who could lose customers to American dealers selling the same equipment is part of the motive behind Bombardier's move, officials say. Bombardier spokesman Pierre Pichette said the policy is not meant as a slight against Canadians. "We understand the frustrations and we want to be fair," said Pichette, adding the company is reviewing its policy. "But we need to make sure we make the right move so we don't create a lot of turbulence for the market." Consumers' Association of Canada president, Bruce Cran, noted the irony of Bombardier refusing sales to Canadians. "Do they think we are a bunch of dupes that we are putting up with this stuff?" said Cran.



    "Bombardier has been subsidized by Canadian taxpayers over great many decades and now they will sell to Americans - and only Americans - for 40 per cent less? That's the reward we get?" Not everyone, however, is upset about Bombardier's stance. Darryl Copithorne is president of the Calgary Snowmobile Club, which has roughly 200 members. He said the group prefers to buy locally. "It's a two-way street," he said. "We give them support and they will take care of us first when we come in for warranty, parts and technical support. That can all be gone if you go outside the border."



    Some American car dealers say the automakers' policy of not exporting to Canada is not entirely new, but due to increased demand from Canadian buyers has only now become more strict - and necessary to enforce. "In 25 years I think I have sold two rigs to Canada," said Greg Hlad, new car manager at Bison Ford, in Great Falls. "Now we're getting all sorts of calls and we have been instructed not to sell new vehicles to Canadians." With a file by CanWest News Service
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  • #2
    Re: More blockades for Canadians going South to shop

    So why didn't they do this when the loonie was at $0.65 USD and Americans were buying Canadian cars in droves?

    Complete ********.
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    • #3
      Re: More blockades for Canadians going South to shop

      I especially like the fact that Bombardier, a CANADIAN company, is holding CANADIAN prices up to 40% higher than american prices.....I guess patriotic loyalty doesn't go both ways either....DOn't they realize if there is MSRP equity across the border we wouldn't have to shop everywhere else?? Are they saying that Ski-Doo that is sold a mountain toys cost more to manufacture than the one in Whitefish? I mean lets get ****** real here......
      2006 Colorado Xtreme | AEM CAI | Walker exhaust | smoked glass | -1" dropped rear | Avic D3 | 8000K HID's
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      • #4
        Re: More blockades for Canadians going South to shop

        Originally posted by Aleks View Post
        I especially like the fact that Bombardier, a CANADIAN company, is holding CANADIAN prices up to 40% higher than american prices.....I guess patriotic loyalty doesn't go both ways either....DOn't they realize if there is MSRP equity across the border we wouldn't have to shop everywhere else?? Are they saying that Ski-Doo that is sold a mountain toys cost more to manufacture than the one in Whitefish? I mean lets get ****** real here......


        seriosuly, bombardier is a fucking terrible company and a discrace to canada.
        what a joke

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        • #5
          Re: More blockades for Canadians going South to shop

          The thing is, its pretty easy for an American or American company to buy the car for you, then sell it to you for a small fee. This won't stop!

          I can't recommend buying a US car enough
          KR
          Porsche 991 Carrera S

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          • #6
            Re: More blockades for Canadians going South to shop

            whats NAFTA?
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            • #7
              Re: More blockades for Canadians going South to shop

              Ya if yu were a smart american you would be opening up a "used" dealer where you act like the middle man.

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              • #8
                Re: More blockades for Canadians going South to shop

                Well we all know Quebec is not part of Canada, that is the main problem. But if they do want to screw Canadian consumers why doesn't the government call in all the loans it has give that company?
                Name: Brent
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                • #9
                  Re: More blockades for Canadians going South to shop

                  This whole situation is just insane and if companies, including Canadians ones are going to treat us like this, then I have no problem sticking it to them. I am going to make my attempt to do all my Xmas shopping outside of Canada this year, even with clothes I am going to try stuff on here see what I like and then source it in the US.
                  Blair
                  Former Cars: '12 Fiat 500, '10 VW GTI, '05 Smart Fortwo, '96 VW Jetta GLX, '02 VW GTI 337.........

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                  • #10
                    Re: More blockades for Canadians going South to shop

                    thats my plan as well.
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                    • #11
                      Re: More blockades for Canadians going South to shop

                      I know I'm going to sound like a noob but where are you going to do all your shopping? Especially clothes and stuff? I want to buy a DS too and I've been thinking about getting one from the US but it doesn't seem any cheaper?

                      Also, I was told that last year you couldn't buy stuff on Amazon.com if you had a Canadian address, they would send you to Amazon.ca which only had about 10% of the products.
                      Jay

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                      • #12
                        Re: More blockades for Canadians going South to shop

                        Originally posted by Tuna View Post
                        Also, I was told that last year you couldn't buy stuff on Amazon.com if you had a Canadian address, they would send you to Amazon.ca which only had about 10% of the products.
                        i buy stuff from amazon.COM all the time, and it shows how F*ckin stupid it is because it 's a whole nother account from amazon.ca
                        Dylan
                        (Made from bits of real panther.)

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                        • #13
                          Re: More blockades for Canadians going South to shop

                          Originally posted by Coker Rat View Post
                          i buy stuff from amazon.COM all the time, and it shows how F*ckin stupid it is because it 's a whole nother account from amazon.ca
                          Cool, well that's good to know because I've been lookin at some stuff on there.
                          Jay

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                          • #14
                            Re: More blockades for Canadians going South to shop

                            Amazon.com will work for a lot of stuff, but somethings they will not send up here, but you can use a package service to re-direct, like Package Express as mentioned in a previous thread.

                            A DS seems to be hard to get for that much cheaper as the price is only about $10 or so different which probably means its not worth while.
                            Blair
                            Former Cars: '12 Fiat 500, '10 VW GTI, '05 Smart Fortwo, '96 VW Jetta GLX, '02 VW GTI 337.........

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                            • #15
                              Re: More blockades for Canadians going South to shop

                              OTTAWA -- Finance Minister Jim Flaherty is urging Canadian retailers to lower their prices to reflect the strong dollar, but many merchants object, saying they're being unfairly criticized for costs they don't control.

                              "My job really for the government is to say to the retailers that you should move your inventory prices as quickly as you can to reflect the reality that the Canadian dollar is much stronger than it was even a few months ago," Flaherty told CTV's Question Period Sunday. "Their prices as soon as possible should reflect the increased purchasing power of the Canadian dollar is a vis-a-vis the U.S. dollar."

                              Flaherty will meet Tuesday with the Retail Council of Canada, the Hudson's Bay Company and other industry representatives to discuss the challenges of the high dollar and how to deal with it.


                              Finance Minister Jim Flaherty buys a new pair of Canadian-made ice hockey skates for his son John, at a hockey store in Whitby.
                              Reuters

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                              Font:****Many Canadian shoppers have been outraged by the fact prices for goods on this side of the border are still much higher than those in the U.S., despite the fact the loonie has been at or above par for about a month.

                              "I think people should be very angry," said Bruce Cran, president of the Consumers' Association of Canada. "I think we should also be angry that the government has been completely silent while we're being ripped off."

                              In response to a massive backlash and increase in cross-border shopping, some Canadian retailers have started lowering prices. For instance, Zellers announced on Friday it was cutting prices on about 250 household products, while Wal-Mart Canada is going to sell some video games at the same price they're being offered in the U.S. BMW Canada Inc. also said it will offer customers cash rebates as an incentive to purchase cars in Canada.

                              But while the finance minister says it's up to Canadian stores to lower their prices and give consumers a break, retailers are fighting back, saying their suppliers are charging outrageous rates.

                              "We're basically saying to multinational suppliers, stop treating us like second-class citizens," said Diane Brisebois, president of the Retail Council of Canada. "The retailers are not getting a break."

                              Canadian merchants are put in a difficult position no matter what they do, according to Brisebois. If they lower their prices to consumers to better reflect the strong dollar, they'll lose money. But if they keep prices the same, they will lose customers to the U.S.

                              Brisebois said the council has requested meetings with the Canadian Manufacturers and Exporters and the Canadian Importers Association to urge them to provide fair prices to Canadian retailers.

                              Flaherty said one of the best ways for Canadian shoppers to see prices come down is to avoid those merchants who continue to charge high prices, despite the strong dollar.

                              "Quite frankly the biggest pressure is from consumers, shopping around, making sure they look for the best deals," Flaherty said. "Some of the retailers have lowered their prices. Some have been slower than others, so there are shopping opportunities for Canadians there."
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