Marketplace Article on Canada Pricing

[Huz-Z]

Hi All,

I'm wondering if any of you saw the recent CBC Marketplace article on the difference in retail prices between Canada and the US. It aired last Friday, February 8.

One of the conclusions they came to was that in many cases, manufacturers are setting prices higher in Canada simply because they always have done so and the market here will bear those prices.

I find this troubling because I feel that prices in Canada are too high and we are being gouged. Its not necessarily the fault of the guys at yuor local dealer, but perhaps the guys at corporate head office who set the prices to begin with.

In any case, I'm interested to know how many of us Canucks imported our Z4 from the US versus how many bought their Z4 here, either new or used.

As for me, my car was imported. I estimate that I saved in excess of $15,000 over buying the car in Canada, when I did the import thing back in 2009.

[MZHammer]

My car was imported from the US, but not by me. I am the second Canadian owner, so I can't comment on pricing disparity in this case.

I didn't see the CBC Marketplace episode and the details that were presented, but this is not an new issue....maybe just popular again. It does amaze me how only part of the story regarding our inflated retail prices, is actually communicated. Manufacturers will often price items higher (sometimes greedily high) up here and we need to expect to pay a SMALL premium, simply because servicing a relatively small population, spread over an extremely wide area is expensive. Let me be clear, I don't necessarily like this and I do find it frustrating, as a consumer at times, so I do my share of cross-boarder shopping (ebay, amazon, drive to Buffalo NY).

I work for a manufacturer (not auto related) that does business in both the US and Canada. One of the best kept secrets that I have seen first hand, is the difference in the "back-end" programs (support dollars for marketing, markdowns, advertising, etc that often end up as retailer profit dollars, rather than an investment in the manufacturers' business) that Canadian retailers enjoy, versus their US-based peers. Typical Canadian programs commanded by our retailers are in the 12-15% range, while a strong program in the US is around the 7-8% range. So, a 4-8% gap at the cost level (to cover the additional program), quickly becomes an 8-16% retail price difference, once retailer margins are applied. Not once have I seen this issue communicated in the media.

I am not a bleeding heart for manufacturers and I realize loads of them are unscrupulous, but I just find it disappointing when the entire burden is directed one way, when in fact it should be shared by the ones often doing the finger pointing (and pretending to take a stand against cross-boarder pricing disparity).

/rant

[3point0]

FWIW i bought my Zed as the second owner from a local audi dealer. The PO was a local too. I found at the time that the prices between the US and Canada were pretty similar not withstanding the cost of duties and mods required would have actually made an import more expensive. I bought the car last year in may.

As far as the generic small population large country issue, that is touted a lot as the main reason for price disparity, but when a local canadian business can sell product in the states for $3 a pound and the same stuff is $8 a pound in Canada, mere steps from where the business is located, you won't be seeing me buying it from the canadian vendor. There is definitely gouging going on. I wonder what the prices are like in Alaska versus the lower 48?

[MZHammer]

Originally Posted by 3point0

FWIW i bought my Zed as the second owner from a local audi dealer. The PO was a local too. I found at the time that the prices between the US and Canada were pretty similar not withstanding the cost of duties and mods required would have actually made an import more expensive. I bought the car last year in may.

As far as the generic small population large country issue, that is touted a lot as the main reason for price disparity, but when a local canadian business can sell product in the states for $3 a pound and the same stuff is $8 a pound in Canada, mere steps from where the business is located, you won't be seeing me buying it from the canadian vendor. There is definitely gouging going on. I wonder what the prices are like in Alaska versus the lower 48?

I guess I was more referring to US-based companies selling into Canada, which is what I am most familiar with. In no way was I implying that geographical scale should result in a price that is 166% higher like you describe, or that it is the real/biggest factor relating to disparate cross-border pricing. Rather, if the item were $3.25-3.50 in Canada, while only $3.00 in the US, it would be "reasonably" explained. That's pretty sad if a Canadian company is charging Canadians more than double what they sell for in the US.

[3point0]

Given the often complicated import procedure for stuff into canada from the US I do feel that your example of $3.50 for a $3.00 item is fair. I still shop in the us for a lot of groceries though

[inTgr8r]

Leased my roadster locally, only because of the huge 'trunk' money available at the time.
Even with that, the back end buyout was in the 43k range which was WAY out of range compared to US prices in the 30k range.

I bought my coupe in the US.

[aerobod]

The $20,000 ($10,000 BMW Canada incentive matched by dealer) off the Canadian list for my new 2007 Z4M when it was sitting on the lot in Feb 2008, was enough to bring it in line with US prices with the incentive available in the US at the time.

[boydgti]

My car came from the US and was imported to Canada by the previous owner. I wish I had a Canada car though. Mirrors that fold in are so cool and or course the MPH speedo are a pain, but very leavable lol

[Caddyshk]

Originally Posted by boydgti

My car came from the US and was imported to Canada by the previous owner. I wish I had a Canada car though. Mirrors that fold in are so cool and or course the MPH speedo are a pain, but very leavable lol

Mirrors that fold in? The only option I ordered was Assist with Bluetooth...

[M_Rated]

I imported mine last January from Washington state. It was quite easy. I figured I saved $8,000.

It's been stored for the winter, but I figure I'll have it back out in about 3 weeks. I so can't wait.

[inTgr8r]

Originally Posted by Caddyshk

Mirrors that fold in? The only option I ordered was Assist with Bluetooth...

& lights that stay on all the time

[Caddyshk]

Originally Posted by inTgr8r

& lights that stay on all the time

Yup - not even an option

[boydgti]

Thought I read somewere that the mirrors folded in with power on Canadian car, might be mistaken on that 1 lol

[inTgr8r]

Originally Posted by boydgti

Thought I read somewere that the mirrors folded in with power on Canadian car, might be mistaken on that 1 lol

That's correct.
Strictly a manual function though with no auto reverse curb view.

[Huz-Z]

My buddy has a Canadian 3.0Si and it has power fold up mirrors. They don't tip on selecting reverse though.

[Daemonblitz]

For some reason no e85/e86 has the tilt upon selecting reverse. I don't know why BMW decided to do that.

[Huz-Z]

Originally Posted by Daemonblitz

For some reason no e85/e86 has the tilt upon selecting reverse. I don't know why BMW decided to do that.

Now that would be a handy feature to have. If it were possible to program the car to do this, I guess someone would have posted a "how to" by now. Too bad!!

[Caddyshk]

Originally Posted by boydgti

Thought I read somewere that the mirrors folded in with power on Canadian car, might be mistaken on that 1 lol

It was an option with premium package IIRC.

[Huz-Z]

Originally Posted by Caddyshk

It was an option with premium package IIRC.

My buddy's car definitely has the premium package, so I think you are quite correct. But no bluetooth. I know many folks don't like the Z4's factory bluetooth, but I've found it to be quite acceptable - at least on my car.