For those who still want a 2011..Decide QUICK
10/28/10, 01:40 PM
#21
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Another reason is because of climate; Mustang sales tend to drop faster in winter here but the southern half of the US isn't affected so much and you can drive the car year around.
The third reason is just numbers and population. 300M potential customers vs 30M potential customers. Who do you want to keep happy?
10/28/10, 01:42 PM
#23
10/28/10, 01:43 PM
#24
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Three reasons, a lack of them keeps the pressure on the price you can ask (as I said, the cheapest GT you can get in Canada is $39,000 MSRP -- There is no basic GT here with cloth seats, ours is the equiv. of your "Premium" but still starts $5G higher.)
Another reason is because of climate; Mustang sales tend to drop faster in winter here but the southern half of the US isn't affected so much and you can drive the car year around.
The third reason is just numbers and population. 300M potential customers vs 30M potential customers. Who do you want to keep happy?
Another reason is because of climate; Mustang sales tend to drop faster in winter here but the southern half of the US isn't affected so much and you can drive the car year around.
The third reason is just numbers and population. 300M potential customers vs 30M potential customers. Who do you want to keep happy?
As to MSRP, why is it higher now that the loonie is par and there is "free trade"?
10/28/10, 01:52 PM
#26
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Gee,which country has the foreclosure mess because of people being unable to make payments?.....and which country has people who whine and cry because they cant afford gas when it gets higher than $3/gal?
10/28/10, 02:09 PM
#27
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The MSRP isn't higher "now" as opposed to then, what has happened is that the value of the CAD had risen vs the USD. This is where you need to understand about currency trading and international labour. When I make $100G CAD in a year when the dollar is trading at $0.70 I make the equivalent of $70,000 USD. But if the dollar rises to par I make the same $100,000 as a person in the US.
Now, did I get a raise? NO. My mortgage is still "X" amount of dollars, a loaf of bread or a gallon of milk or my car payment remains the SAME. But to a US-owned manufacturer, it's good and bad -- I can pocket the exchange swing if especially if I produce in the US. HOWEVER if I produce in Canada, my labour costs and any parts I procure there cost more.
You seem to misunderstand the premise of what "free trade" actually means. What it actually means is that goods produced in either country are not subject to tarriffs as they pass from one country to another, that doesn't mean that the price in both companies have to be the same. All it's done is lowered the price that manufacturers have to pay as their goods cross borders. To the average citizen, nothing has changed.
Ford of Canada sets their prices and ordering options according to what they feel the market will bear. The Canadian Mustang order guide is about half the thickness of the US one, and the pricing on all of it is higher.
10/28/10, 02:21 PM
#28
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^ he's got it right,
and to add to it, the reason they didn't change the price when the canadian dollar raised is for the simple fact that currency is always changing. They can't change teh price everytime the dollar goes up or down
and to add to it, the reason they didn't change the price when the canadian dollar raised is for the simple fact that currency is always changing. They can't change teh price everytime the dollar goes up or down
10/28/10, 02:21 PM
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If its "what the market will bear" then neither par or NAFTA are in play.
Sure they can. They do all the time on numerous products and especially commodities. If I buy something on ebay from outside the US and pay thru paypal the currencies are converted and I pay accordingly. I just bought a book from England and got boinked.
Last edited by cdynaco; 10/28/10 at 02:25 PM.
10/28/10, 02:36 PM
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10/28/10, 02:43 PM
#31
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Right. I do understand friend. That's exactly why I don't get why MSRP is higher in Canada at this time. There are no tariffs and the product is exported from the US with the dollar and loonie at par give or take a bit. I would think that MSRP would be the same (or very close).
If its "what the market will bear" then neither par or NAFTA are in play.
Sure they can. They do all the time on numerous products and especially commodities. If I buy something on ebay from outside the US and pay thru paypal the currencies are converted and I pay accordingly. I just bought a book from England and got boinked.
If its "what the market will bear" then neither par or NAFTA are in play.
Sure they can. They do all the time on numerous products and especially commodities. If I buy something on ebay from outside the US and pay thru paypal the currencies are converted and I pay accordingly. I just bought a book from England and got boinked.
Most car companies forbid their dealers from selling cars for export ,although there are ways to work around that....I purchased a vehicle in the us 3 years ago and saved $15000 cdn after allowing for all of my costs.
10/28/10, 02:49 PM
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Sure they can. They do all the time on numerous products and especially commodities.
I live near the border -- I have no problem crossing the border.
3 years ago I bought a 60" Sony XBR2 widescreen, after shopping and price comparisons, I bought it at Sears in Niagara Falls NY. Why?
US price on sale? $2500+NY sales tax+exchange+Canadian sales tax=$3300
Same TV in Canada? $4500+tax = $5200
Even the little things are vastly different. I have subscriptions to Esquire, Maxim, Popular Science and Popular Mechanics. Im Canada, the cheapest subscriptions for 2 years would be about $220. Solution? I order a subscription through Amazon. Well Amazon.com doesn't ship magazines to Canada. But there's a workaround ... I have the subscription address set as a public library in NY, and before the first order ships I contact the publisher and change the shipping address to mine! Cost: $70
If I buy something on ebay from outside the US and pay thru paypal the currencies are converted and I pay accordingly. I just bought a book from England and got boinked.
Last edited by OAC_Sparky; 10/28/10 at 02:52 PM.
10/28/10, 03:12 PM
#34
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No I don't think they change prices everyday. But they certainly can adjust to stay in range (leaving 'wiggle room') on a reasonably frequent basis.
Sounds to me like some Canadian retailers need to take a course in "competing in the free enterprise system 101" because they are losing profits due to their monopolistic greed. Course that plays into the US Fed's strategy to talk 'strong dollar' while letting it wither so as to increase exports and cross border purchases.
Then again, to be fair, perhaps there are more levels to this since the TV example was not manufactured in Canada. Perhaps the US to China/Japan/etc. exchange rate is different from the Canada to China/Japan/etc. exchange rate and that increases Canadian prices above and beyond the loonie to dollar par?
Last edited by cdynaco; 10/28/10 at 03:35 PM.
10/28/10, 04:02 PM
#36
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Agreed. But to have such a higher MSRP for such a long time (you've been at or near par for a few years now correct?) shows its more about greedy margin.
Right. We're not talking about value. Its the same book. We're talking about out of pocket costs to the consumer. Its the same Mustang. Manfuctured in the US, exported to Canada, at a time when the exchange rate is at or near par. Shouldn't be such an extreme diff in price. So its Canadian dealers (and/or Ford dictate), not currency.
No I don't think they change prices everyday. But they certainly can adjust to stay in range (leaving 'wiggle room') on a reasonably frequent basis.
Sounds to me like some Canadian retailers need to take a course in "competing in the free enterprise system 101" because they are losing profits due to their monopolistic greed. Course that plays into the US Fed's strategy to talk 'strong dollar' while letting it wither so as to increase exports and cross border purchases.
Then again, to be fair, perhaps there are more levels to this since the TV example was not manufactured in Canada. Perhaps the US to China/Japan/etc. exchange rate is different from the Canada to China/Japan/etc. exchange rate and that increases Canadian prices above and beyond the loonie to dollar par?
Right. We're not talking about value. Its the same book. We're talking about out of pocket costs to the consumer. Its the same Mustang. Manfuctured in the US, exported to Canada, at a time when the exchange rate is at or near par. Shouldn't be such an extreme diff in price. So its Canadian dealers (and/or Ford dictate), not currency.
No I don't think they change prices everyday. But they certainly can adjust to stay in range (leaving 'wiggle room') on a reasonably frequent basis.
Sounds to me like some Canadian retailers need to take a course in "competing in the free enterprise system 101" because they are losing profits due to their monopolistic greed. Course that plays into the US Fed's strategy to talk 'strong dollar' while letting it wither so as to increase exports and cross border purchases.
Then again, to be fair, perhaps there are more levels to this since the TV example was not manufactured in Canada. Perhaps the US to China/Japan/etc. exchange rate is different from the Canada to China/Japan/etc. exchange rate and that increases Canadian prices above and beyond the loonie to dollar par?
It really gets insulting when you compare the prices of vehicles made in Canada and exported to the USA...ie Acura MDX is about $12-$13000 more in Canada versus USA for essentially the same vehicle.
Part of it also ,is that wages are generally a lot higher in Canada versus USA.
10/28/10, 05:17 PM
#38
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I actually remember when the TBird was first sold here, people were coming over the border to buy them...like...paper bag full of money-type of buying.
If Ford of Canada found anyone selling one to the US market, they were subtracted one allocation from the next year.
The dollar would have to stay at parity or higher for an extended ammount of time, and a noticeable change in domestic sales before they'd change their pricing.
If Ford of Canada found anyone selling one to the US market, they were subtracted one allocation from the next year.
The dollar would have to stay at parity or higher for an extended ammount of time, and a noticeable change in domestic sales before they'd change their pricing.
10/28/10, 07:09 PM
#40
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Now , about this allocation thing, well i'm a bit surprised, all summer long, my local ( largest in this area ) Ford dealership had no problem whatsoever getting ( ordering) Mustangs for customers, they still have some on the lot as of today. I guess it all depends on how many cars you sell on a month's basis or something.