REVscene Automotive Forum - View Single Post - ELI5: The US-Canadian price disparity

Marshall Placid · 05-08-2013, 01:53 AM

Specifically, I see that you are asking about "US Retaliers" charging more in Canada, and not Canadian owned businesses charging more in Canada.

1-Distribution costs since Canada has one of the lowest density for population in the world. For example, even though there are large cities in Canada, there are not as many large cities NEAR these large cities such as in the US.

2-Currency fluctuations hedge. The CDN dollar used to be $1.50+ to $1.00 USD.

3-And one of the posters mentioned about tariffs. I think there are duties on milk produced in the USA being imported into Canada.

4-Smaller market

5-Milk, in my opinion, is price inelastic. So, Canadians will continue to buy milk even though the price increases, so retailers will and can charge more. There is no real substitute to milk.

05-08-2013, 01:53 AM	#12
Marshall Placid Revscene.net has a homepage?! Join Date: Jan 2013 Location: Richmond Posts: 1,295 Thanked 1,934 Times in 494 Posts Failed 31 Times in 15 Posts	Specifically, I see that you are asking about "US Retaliers" charging more in Canada, and not Canadian owned businesses charging more in Canada. 1-Distribution costs since Canada has one of the lowest density for population in the world. For example, even though there are large cities in Canada, there are not as many large cities NEAR these large cities such as in the US. 2-Currency fluctuations hedge. The CDN dollar used to be $1.50+ to $1.00 USD. 3-And one of the posters mentioned about tariffs. I think there are duties on milk produced in the USA being imported into Canada. 4-Smaller market 5-Milk, in my opinion, is price inelastic. So, Canadians will continue to buy milk even though the price increases, so retailers will and can charge more. There is no real substitute to milk.