Loonie Hits 47-Year High; Update - Broke $1.10 today!

[Claeren]

Originally Posted by Bobblehead

I still want to know the business logic behind this. If they would sell to Canadians before, why stop now? Theoretically, they should be able to get even more Canadian business since their prices are relatively cheaper for us.

It is usually the head office trying to "protect" their Canadian sellers.

Remember that Oakley (or Ford or GM or whatever) has sold millions (or billions) in product to franchises/retailers/distributers/etc in Canada - franchises/retailers/distributers/etc that often paid LARGE amounts for the rights to do so.

In order to keep them in business they are blocking American sales - an option available to them in their American re-sale contracts.

Of course that also guards the profit differential between the two markets, IF it exists.

Short term thinking, but short term is what pays the bills today...



Claeren.

[blankall]

Originally Posted by oilers_fan

But these places are completely blocking their websites. Try going to oakley.com.

It totally sucks. They just want you to got to Oakley.ca. In all honesty duties, shipping, and the increased corporate tax rate in Canada probably do account for some of this cost, but not all of it....

From their perspective they really have no reason to want to decrease prices. Oakley is the kind of brand people will buy because there is no real substitute. Fans of Oakley's want Oakley's. So you are either stuck paying the extra cash or buying from a US retailer. Either way they move product. They either gain the extra cash from you buying from them on the .ca site, or they end passing on the hassle of international trade to a retailer.

[Regorium]

Not to be too much of a downer, but I know at least 3 manufacturing plants that have closed in the last month. A lot of US customers have returned to getting their stuff back home or abroad because of how high the prices are now.

Crazy how one end of the country is absolutely prospering in this, and the other end is about to go into recession because of it.

Worst part is, we're really not seeing the increased buying power as many people in the thread have pointed out.

[BlackArcher101]

Originally Posted by Regorium

Crazy how one end of the country is absolutely prospering in this, and the other end is about to go into recession because of it.

Are you saying the west is prospering because of the high dollar?

[mykalberta]

Originally Posted by Machiavelli

Yeah, I bought something on Ebay a couple of days ago and cried tears of joy when I noticed that I paid less than the US price.

It's a beautiful thing.

Yes, yes it is.

[mykalberta]

Originally Posted by Cowperson

I think it's pretty ironic that gasoline, the one thing where there seems to be universal concensus that the price is rigged, seems to be the only product in Canada that appears to be reflecting the strength of the Canadian dollar versus the USA dollar.

Gasoline prices in Canada appear to be the same at $90 USA oil as they were at roughly $60 USA oil two years ago.

Cowperson

While I havent really paid attention to gas prices (I only fill up maybe once a month). The COOP gas bar on 16th Ave NE price has actually stayed the same or gone down a bit while the cost / barrel of oil has gone up.

Not sure if that has to do with low demand but take it for what you will.

[mykalberta]

Just saw this on CTV

http://ctv2.theglobeandmail.com/serv...N/ctv-business

EDC predicting low of 0.85 next year on lower commodity prices.

Personally I dont see Oil dropping to $65/b for any lenght of time. The Oil Minister for Qatar indicated on BBC world yesterday said he could easily see $100/b oil and that would be a "bargain".

[Claeren]

Originally Posted by Regorium

Not to be too much of a downer, but I know at least 3 manufacturing plants that have closed in the last month. A lot of US customers have returned to getting their stuff back home or abroad because of how high the prices are now.

Crazy how one end of the country is absolutely prospering in this, and the other end is about to go into recession because of it.

Worst part is, we're really not seeing the increased buying power as many people in the thread have pointed out.

I don't understand the reasoning here.

How long were you expecting these plants to stay open? 3 more years? 5 more years?

Canada's future is not in manufacturing, it just is not. Beyond a few time sensitive products and specialty items anything else is a bonus. But really the high dollar has just sped up only slightly what was going to happen anyways.

IF manufacturing was that important in Canada's economy now and in the future than the dollar woul dhave already dropped to reflect that fact. The very fact that the dollar is still high despite the pressure on manufacturers is proof that manufacturing is now a niche part of the Canadian economy.




Claeren.

[Bobblehead]

Originally Posted by mykalberta

Just saw this on CTV

http://ctv2.theglobeandmail.com/serv...N/ctv-business

EDC predicting low of 0.85 next year on lower commodity prices.

Personally I dont see Oil dropping to $65/b for any lenght of time. The Oil Minister for Qatar indicated on BBC world yesterday said he could easily see $100/b oil and that would be a "bargain".

From EDC's April 2007 forecast:

EDC expects a decline in the Canadian dollar to between 83 and 84 cents U.S. by the end of 2007 before easing further to between 82 to 83 cents U.S by the end of 2008. The easing of the Canadian dollar reflects EDC’s projected decline in the price of oil to USD 55 per barrel in 2007 and a further drop to USD 50 in 2008.

http://www.edc.ca/english/docs/news/...room_12605.htm

So EDC seems a little off.

[chris lindberg]

Hmm, some say up and some say down?

[Nehkara]

1.0532 this morning.

[return to the red]

Originally Posted by Nehkara

1.0532 this morning.

could see another big jump as the U.S. is expected to lower rates again

[FLAMESRULE]

Originally Posted by return to the red

could see another big jump as the U.S. is expected to lower rates again

They just cut 0.25% off, down to 4.5%. With more cuts expected to come.

Dollar at 1.054:1

[Nehkara]

Just started jumping up again now after news of the rate cut... 1.0550

[Nehkara]

1.0559

[return to the red]

1.0567...look at it go

[Nehkara]

1.0572

[return to the red]

Originally Posted by Nehkara

1.0572

are you watching it in realtime or do you have to keep hitting refresh

[Nehkara]

Originally Posted by return to the red

are you watching it in realtime or do you have to keep hitting refresh

I am refreshing.

[return to the red]

Originally Posted by Nehkara

I am refreshing.

says you