dblooh7
06-25-2006, 10:50 AM
Now that the canadian dollar has climbed significantly since the posting of pricing for new sleds what does everyone think will happen to pricing? Eg Yam Apex USA $10,599 Canada same sled $13,799. Considering the current exchange rate that seems to be way overstated. At current pricing this is about 30% exchange rate while the current exchange is about 12%. Anyone else have thoughts on what may happen with pricing?
trailblazer
06-26-2006, 01:41 PM
If you're talking about Yamaha, I doubt you'll see any changes as it's the U.S. $ that is weaker, not the Canadian $ being stronger compared to the Japanese Yen.
If you're talking about U.S. or Canadian built sleds, I doubt you'll see any changes as the manufacturers set their prices well before any delivery dates and currency rates fluctuate on an hourly basis. It would really enrage their customers to buy a sled at a particular price and then have them drop the price just because of currency rate fluctuations. That's the gamble the manufacturers take. Sometimes they win and sometimes the consumers win. It's no different with car pricing. They're made all over the world but they don't change sticker pricing based on currency exchange rates.
You may see closer scrutiny of dealer records as they aren't allowed to sell to cross border shoppers.
If your figure of a 30% price difference between U.S. and Canadian prices is correct, us Canadians could go buy our sleds in the U.S. with dollars we only paid 10% to buy. It would give us a 20% price advantage. That would bankrupt many Canadian dealers. Therefore manufacturers have agreements with their distributers not to sell to cross border clients. Usually, that's not monitored very closely as the exchange rate pretty well detered customers from doing so. That may change with a minimal difference as we have now.
Jeff
revrnd
06-26-2006, 04:02 PM
Actually a few years ago I saw a notice in a Polaris dealership that they would only repair US model sleds that were registered in the US.
I guess that's why identical 'doo sleds have a US model number and a Canadian model number. The dealer can tell where the sled was sold.
This is a good post as there has been a bit written in the papers about US made goods sold in the US not coming down in price due to the currency change we've seen.
dblooh7
06-27-2006, 07:26 AM
The big issue I see is the increased margin by the manufactuer due to currecy exchange rates with the US dollar dropping. Many of the parts are made off shore (especially China) where the purchasing of these goods is in US dollars. The main reason for the large variance in pricing from US to Cdn was because of the exchange rate. If anything if the product is made here in Canada the item should go up in price in the US market. The other issue I see is the large increase in 2 major areas in China, 1 being cost of raw materials (ie copper, plastics) and the recent increase in wages. What concerns me is why canadians are not seeing any downward movement on pricing with the weaker US dollar and secondly why in the US the prices of many things have not become more in line with Canada. This will encourage cross board shopping like never before. If someone has any information on how to import sleds from the US with all the steps that would be great addition to this thread.
Thanks