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United States / Canadian Pricing for DVD & Blu-ray!
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DVD Profiler Unlimited Registrantroop
Save time, see it my way!
Registered: May 23, 2007
Canada Posts: 69
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Can anyone explain why there is such a discrepancy between the US and Canada for the price of DVD's and Blu-ray Discs?

With the two currencies virtually at par, I can't understand why this takes place other than the sellers simply can get away with it.

If you check the prices at amazon.com and amazon.ca, you will see there is usually a significant price difference. Even when one pays sales tax, if you have a larger order it tends to be cheaper to buy from the US.

There are few labeling differences between the discs in question, often suppliers do not even send out a bilingual cover for the disc and the Canadian rating code is on the cover for the US version.

So what is it? Simple greed or is there a good reason for the discrepancy?
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DVD Profiler Unlimited RegistrantStar Contributorwidescreenforever
Under A Double DoubleW
Registered: March 13, 2007
Reputation: High Rating
Canada Posts: 5,494
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Because Americans get $5.50  an Hour  and Canadians  get over $9.00 ..  for handling ...


It has to be the only answer... 
In the 60's, People took Acid to make the world Weird. Now the World is weird and People take Prozac to make it Normal.

Terry
 Last edited: by widescreenforever
DVD Profiler Unlimited RegistrantStar Contributortweeter
I aim to misbehave
Registered: June 12, 2007
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Hmmm...maybe we could meet at the border and trade DVDs and BDs for some cheap pharmaceuticals! 

Is it a holdover from when the US dollar was worth more than the Canadian? The same applies to book.  I'm looking at a Grisham hardcover that is $27.95 US and $33.00 Canadian.
Bad movie?  You're soaking in it!
DVD Profiler Unlimited RegistrantNumerobix
Registered: May 27, 2007
Canada Posts: 8
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Unfortunately the market for DVDs and Bluray disc are control by large chain, that don't really care about small items like movies, they prefer selling you the hdtv.
The DVDs prices should be droping now. But still I see titles at $25. It was a new title. Lets say, it is the price of oil, that drives the price of transport to Canada high... Hum, wrong, we have plants that prints DVDs. We may not print them all though.

As for books, it's different. My bookstore (even though they are making far less money, marging wise on books) is selling me, the english/US books at the US price. So If there is a price on the cover that says  27.95 US$  33CDN$. I will buy it at the lowest price. Because, I imagine, the are eager to sell, and they want my bussiness as a returning costumer. And I'm a nice guy too!
Probably or maybe the distributors had something to do with this too.
And also as Tweeter said; Amazon is another perfect example for it. Unfortunately some titles are not available through amazon.com but only through amazon.ca.

Maybe going Off subject, sorry. But someone told me that the percentage of profit (I don't remember what it was...) on a DVDs TV series was enormous (I don't remember but it was shocking) And still they are selling them (a least some of them) at $50.

Anyway it is like the price of gaz, will we stop buying? We may change some habits... but a good movie title will always sell. So are we stuck with higher prices?
DVD Profiler Unlimited RegistrantStar ContributorWinston Smith
Don't be discommodious
Registered: March 13, 2007
United States Posts: 21,610
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Oh good grief. I was going to stay out of this but why are companies not allowed to make a profit. As someone who spent many years in y younger days involved in retail (brick & mortar) I can give you a rule of thumb for ANY product, the COST to the retailer from the wholesaler is approximately 50% or the MSRP. As we all know very few products can be sold successfully at MSRP, with some very notable exceptions which I shan't go into. out of that discounted price which can take a price to just over 10% over cost, retailers have to pay all of the overhead, taxes, payroll, etc, etc, etc.. Back in my day the "normal" wholesaler profit was his cost +30%. So now we are down to the film distributor and the claim is that they make an shocking amount of profit on TV Series, they may or they may not. Does restoration in any form come free...hardly, computers can restore many media into near pristine condition relatively inexpensively but still not free. The painstaking hand-done restorations are now reserved for the true "gems" and "treasures'. But the digital restoration job done on Mission: Ipossible is certainly impressive given the 40 year old nature of the show. So there is one cost. The originalproduction costs were absorbed long ago, and most actors from that time get nothing to near nothing Pn the form of residuals...but we want more than just the shows, we want goodies, those goodies aren't free, the actors do not involve themselves in thes productions for free nor should they. Then there is the issue of music rights in some cases, notably "Happy Days" and" WKRP", if the distributor had paid for the licenses to play the music as it originally aired the price to the consumer would have been exorbitantly high, in some cases several tens of thousands of dollars or even hundreds for a 5 second clip of music. There is alot involved in the entire process and everyone in the chain has to make money or we have no product to buy, don't forget to add approximately $2.00 to every title for the cost of piracy and shoplifting.

So lighten up already. If I have any beef at all with the system, it is the insertion of the middleman (wholesaler) to the process. I am old enough that I can remember when wholesalers were not significant, a retailer could go directly to the manufacturer and buys his goods. Now the ONLY stores that can deal directly with distributors is those stores which can make mega-purchases.

Way back when, I happened to be involved in book sales (paperback) for a company, one of several areas. Back then paperback books were a guaranteed sale, anything that I could not sell, could in essence be returned to the publisher for credit. At the beginning, I was doing what had always been done, ordering 2 and 3 copies and not generating any sales to speak of. One day I recall asking a rep why WaldenBooks was getting their titles two weeks before me, he said "you know those dumps with 36 copies or more in them" they get shipped for release on the date of release, the book sellers which order small quantities get shipped two weeks later. Want to guess what I started doing, IMMEDIATELY, after all anything which was not sold I could get credit on....no brainer.

Ma and Pa Kettle will buy two copies of AVP: Requiem and probably has to sell them at near MSRP, a big boxer will buy 100 copies (at least) per store plus their internet presence. Who gets the best price?

Skip
ASSUME NOTHING!!!!!!
CBE, MBE, MoA and proud of it.
Outta here

Billy Video
DVD Profiler Unlimited Registrantroop
Save time, see it my way!
Registered: May 23, 2007
Canada Posts: 69
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Quoting skipnet50:
Quote:
Oh good grief. I was going to stay out of this but why are companies not allowed to make a profit.

So lighten up already. If I have any beef at all with the system, it is the insertion of the middleman (wholesaler) to the process. I am old enough that I can remember when wholesalers were not significant, a retailer could go directly to the manufacturer and buys his goods. Now the ONLY stores that can deal directly with distributors is those stores which can make mega-purchases.


Skip


Ummm, never said I have a problem with companies making a profit.

I just don't like gouging!

This is about the difference between the US and Canadian prices. As I mentioned, some discs come straight from the USA, so the argument with regard to the number of units produced is moot. Shipping is not a significant factor to explain roughly 30% higher pricing in Canada. I was hoping someone might have some explanation.

By the way, I like capitalism - I like competition too... It seems like there is price fixing going on here and that is not how the free market is supposed to work. In the old days as someone mentioned there was a significant discrepancy between the price of a book in Canada and the US. This could be explained by the difference in currency. As that is no longer an obstacle, books are being priced either the same or closer to the US price.

I hope this trend follows for DVD's and Blu-ray discs; however, the prices on the books didn't start to change until people made a fuss... Perhaps that is what needs done here as well.
Blu-ray Enthusiast!!!
DVD Profiler Unlimited RegistrantStar ContributorWinston Smith
Don't be discommodious
Registered: March 13, 2007
United States Posts: 21,610
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This is purely a guess drawing on my experience in the retail, roop. I don't think there is any deliberate gouging occurring. What is suspect is that dealers more than likely periodically, maybe monthly, quarterly, semi-annually, whatever, adjust their prices relative to whatever currency you might be referring to. It is easier with the internet, but having spent years in the business, the idea of  daily changing my prices based on the exchange would have me climbing walls in short order. You may be able to find some reference to this in websites, if my theory is correct they would not necessarily adjust their prices immediately going the other way, which means you might get a bigger bargain than you should sometimes.

Skip
ASSUME NOTHING!!!!!!
CBE, MBE, MoA and proud of it.
Outta here

Billy Video
 Last edited: by Winston Smith
DVD Profiler Unlimited Registrantroop
Save time, see it my way!
Registered: May 23, 2007
Canada Posts: 69
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Skip,

I hope what you say is true. It did take some noise to get the price of paperback books to match currency. Walmart instantly started charging the US price on the covers. Some stores had the double pricing removed. As always you have to shop around as well, rewarding those that charge less and hope to make a profit by gross sales.

What I also did was send a note to Amazon.ca, to give them a chance to respond.

Here is a copy of what I asked.

[i]Dear Sir:

I was wondering if you can explain to me the price discrepancy between your Canadian and USA sites for Blu-ray discs. With our respective currencies virtually at par, I wonder why, when many of the discs come from the USA, that there is any significant difference in the retail price. I would be most interested in your response.

Thank you.
[/i]
I will post the reply I receive when it comes in...

Roop
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DVD Profiler Unlimited RegistrantStar Contributormdnitoil
Registered: March 14, 2007
United States Posts: 1,777
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I too was led the believe that price adjustments for currency occur on something like a bi-annual basis.  Of course, it won't shock me to find out that it really works more like the gas business.  The second some bad news occurs on the market, the price at the pump jumps, however it takes months when the reverse is true. 
DVD Profiler Unlimited Registrantroop
Save time, see it my way!
Registered: May 23, 2007
Canada Posts: 69
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Here is the response I received from Amazon.ca - about 3 hrs turnaround... that's pretty good. They even so much as suggest I buy from Amazon in the USA...

Quote
"Thank you for writing to Amazon.ca with your feedback about our prices.

I'm sorry for any misunderstanding. Prices on Amazon.ca do not reflect prices on Amazon.com, regardless of the current exchange rate. While many of the items we offer on the Amazon.ca website are also offered on Amazon.com, the prices of items offered on both sites may not be the same.

Also, I have forwarded your message to the appropriate department in our company for their consideration.

Many factors in the Canadian marketplace, including what we pay to our own suppliers, affect the prices that we charge at any given time our customers on Amazon.ca. This may result in different prices on Amazon.ca and on Amazon.com for the same item.

We are committed to offering our customers low prices. We also strive to provide a broad selection, including a large number of import CDs, videos, and DVDs; the prices on these titles are often higher than the prices on domestically-produced releases.

We realize that from time to time, our customers will be able to purchase a title from another store at a lower price than ours. Though price is obviously a very important factor in any purchasing decision, we feel that the best reason to buy from Amazon.ca is the quality of customer service we provide.

Of course, you're also welcome to purchase from Amazon.com if you'd prefer. If you do decide to purchase from Amazon.com, note that international orders may be subject to international shipping charges as well as customs fees.

Thank you for shopping at Amazon.ca.

Please let us know if this e-mail resolved your question:

If yes, click here: (link removed by me)
If not, click here: (link removed by me)

To contact us about an unrelated issue, please visit the Help section of our web site.


Best regards,

Sivabalasubramanian R. Amazon.ca Customer Service. "

End Quote

Well, nothing here that I didn't know already; however, I do like that they are forwarding it on for further consideration...

My bet is that if they get enough of these letters, it may have an effect.

Perhaps any other Canadians that have the time may take the chance to let Amazon know their feelings? Can't hurt!

Roop
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DVD Profiler Unlimited RegistrantStar ContributorTomGaines
Registered Sept. 24, 2001
Registered: March 13, 2007
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Germany Posts: 2,005
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It is normal, that prices stay the same even though your currency has now a different value compared to another. All these years, where the Canadian Dollar was worth less than the US Dollar nobody complained about the higher prices. Just because the US economy is now so weak, that the US Dollar has currently become such a weak currency, doesn't mean that the Canadian prices will be adjusted to it.
What do you think would happen, when the Canadian prices would drop because the neighboring country has currently a weak currency, but then the US Dollar would gets strong again and the Canadian prices have to be adjusted again (to a higher value)? How many complains would there be?

Or do I misunderstand something here and the two currencies are a special case? Are the two economies especially entwined where it is understood that the Canadian Dollar has a specific correlation to the US Dollar which has now be changed?


DVD Profiler Unlimited RegistrantStar ContributorWinston Smith
Don't be discommodious
Registered: March 13, 2007
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Historically speaking the US dollar has weakened from time to time, Tom. Just as it has versus the Pound Sterling. In the longer view however while there have been such fluctuations before the general trend has been for the Canadian Dollar to be in the range of about 20 to 30% discount from the US Dollar, just as historically the Pound Sterling usually runs in the $1.75 to $2.00 range. I would expect longer term to see a return to this general area...time will tell.

Skip
ASSUME NOTHING!!!!!!
CBE, MBE, MoA and proud of it.
Outta here

Billy Video
DVD Profiler Unlimited Registrantroop
Save time, see it my way!
Registered: May 23, 2007
Canada Posts: 69
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Quoting TomGaines:
Quote:

Or do I misunderstand something here and the two currencies are a special case? Are the two economies especially entwined where it is understood that the Canadian Dollar has a specific correlation to the US Dollar which has now be changed?


Tom, I am not an economist. Here is my guess though. For some time now the Canadian Dollar has been, in my opinion, undervalued against the US Dollar. I think the intent was to give us an advantage in trade as the US and Canada are respectively each others largest trading partners.

Over the past year or so, due to a number of factors, Canada has been unable to maintain what I think was a deliberate attempt to keep our dollar low. Politics aside Canada has also been steadily reducing its deficit when a number of other countries, particularly the US, have been increasing theirs.

Canada continues to have a trade surplus with the US because we are actually their major supplier of crude oil. We also export a great deal of other natural resources to much of the world. We have a relatively small population for such a large country 30 million people for the second largest geographic area... That said, the US and Canadian currencies are tied together and I think it is unlikely there will be a shift back to the old days of the Canadian currency being allowed to remain undervalued.

At the cost of manufacturing jobs (we tend to pay higher wages in Canada for that type of job) and a number of other factors, we still have a lot of resources to sell. Personally, I think we are not as good as we could be about secondary industry, but that will have to change with time.

When you have an elephant next door (no reference intended to US Politics  ) Our economy will always be directly impacted by our southern neighbours.

That said, I want to pay the same for my DVD's and Blu-ray discs!!!
   
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DVD Profiler Unlimited RegistrantStar Contributorbigdaddyhorse
Registered: June 21, 2007
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What this means is all you Canadians in Windsor and the surrounding areas need to come over to Michigan and buy your discs. Our state needs the financial help, and you guys need the now sale prices our week dollar offers. Plus you get those cool single language covers, the bi-ligual ones look nasty to me.
I'll meet someone at the Detroit/Windsor border with an order of Blu-Rays for a small fee plus gas. It has to be on the US side though, Canada won't let me in seeing how I'm a "menace to society". Not sure how a 17 year ago drunk driving makes me a menace, but they said it does.
DVD Profiler Unlimited RegistrantStar Contributorbob9000
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Registered: March 13, 2007
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I always head down to the Alexandra/Arlington area every year to take advantage of Black Friday. I have been doing it for years, and with the higher dollar the last couple years have been SWEEEEET. But I find that outside of amazon.com, a lot of the regular priced stuff is not much different most of the time. Despite a MASSIVE difference in the SRPs, retail-wise if you are canny and prudent you can usually find a more-or-less equivalent price up here. Especially in Alberta where there is no provincial sales tax (not that I live there anymore    ). Amazon.ca IS a massive rip-off compared to Amazon.com however.
 Last edited: by bob9000
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