 |
|
|
|
|||||
Volatile
Canadian Dollar Leading to Higher
|
October 27th, 2008 With the wild swing in the Canadian dollar over the past year, increasing to an all-time high of $1.10 in November 2007, and then late today dropping to a low of 77.59 cents (US), over time most products that are imported will go up in price if the dollar stays low as is now being predicted. It is unlikely that Canadian distributors will do much to change prices before and during the important holiday shopping season, since current inventories were purchased when the dollar was stronger. If the dollar remains low however, importers will be forced to raise prices to cover the rising cost of goods bought in US Dollars. Items typically held in limited inventory such as higher end professional cameras would be more likely to be affected first. In an article that appeared in today's The Globe and Mail newspaper "Retailers bite the price bullet for Christmas", Wynne Powell CEO of London Drugs, is quoted as saying that "already some camera suppliers have warned that they will have to raise prices in mid-November if the loonie (Canadian dollar) remains weak". "They're all holding off, hoping the dollar will recover," Mr. Powell said. "It's a great time for people to get out and buy. ...Come next year there could be a reflection of those price increases, just like there were price decreases when the Canadian dollar went well." www.theglobeandmail.com Popular US Offers:
As an example, major US photo specialty retailer B&H Photo is currently listing the Canon EOS 50D digital SLR body without a lens for $1399 US compared to Henrys (a trusted Canadian retailer) advertising the same camera for $1449 Canadian. Given the current exchange rate difference between the Canadian versus US dollar, the Canon EOS 50D body only should actually be selling for around $1776 CAD at Henrys, in order to be on par with the B&H Photo price (based on 1.27 CAN to the US dollar). The difference between the B&H Photo price for the Canon EOS 50D once converted to Canadian Dollars. and the current Henrys advertised offer is about $330 CAN. ($1776 - $1449) Looking at it the other way around, the price of the Canon EOS 50D camera body is only about $1120 US at Henrys, based on the current rate of exchange. ($1449 CAD x 0.775 exchange rate to US $) Digital SLR Best Sellers:
|
||||
|
|
