I was at Future Shop last night and I was looking at the new iPod Touch, and other than being blown away by how amazing it is, I was also struck by another emotion. Annoyance. The price for the 16 GB model is set at $449.99 (CAD), and I know that it retails for $399.99 (USD). While this wouldn't normally upset us Canadians, something significant has changed. THE CANADIAN DOLLAR IS WORTH MORE THAN THE US DOLLAR:
Figure: The USD fall from grace.
So why haven't retailers reflected this in their pricing? I've compiled a price comparison chart between more-or-less Canadian/US counterparts Future Shop and Circuit City for several electronics item (assuming 1 CAD = 1.02 USD):
| item |
Futureshop
(CAD)
|
Futureshop
(USD) |
Circuit City
(USD)
|
Savings (CAD)
|
%
|
| Apple iPod Touch 16 GB |
449.99 |
458.52 |
399.99 |
58.53 |
12.8% |
| Apple iPod Touch 8 GB |
329.99 |
336.24 |
299.99 |
36.25 |
10.8% |
| Microsoft Xbox 360 Elite |
499.99 |
509.47 |
449.99 |
59.48 |
11.7% |
| Nintendo Wii |
289.99 |
295.49 |
249.99 |
45.50 |
15.4% |
| Halo 3 |
69.99 |
71.32 |
59.99 |
11.33 |
15.9% |
| Panasonic TH50PX75U |
2299.99 |
2343.58 |
1699.99 |
643.59 |
27.5% |
| Toshiba HD-A2 |
299.99 |
305.68 |
279.99 |
25.69 |
8.4% |
| Sony KDL40XBR4 |
2899.99 |
2954.95 |
2799.99 |
154.96 |
5.2% |
This table definitely makes it compelling to get in a car and make a trip to the US for some shopping, especially when you factor in the differences in sales tax as well. For example, in Ontario where I live there is 14% sales tax, and if I were to go across the border in to New York State where they have 8.75% sales tax and buy a new 16GB iPod Touch, I would save me almost $90 factoring in the price difference and sales tax. The Canadian iPod would cost me $523 whereas the US iPod would cost only $435 for a total 17% savings.
