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Canada & USA Free Trade

Canada & USA Free Trade

April 7th, 2006  · stk

Consumer Thoughts After Buying a Casio EX-Z850 Digital Camera

The population of the United States is roughly ten times that of Canada. It's no surprise then, that the U.S. has a much more efficient consumer marketplace than Canada. I recently discovered just how much more efficient, after purchasing a Casio EX-Z850 digital camera.

Firstly, I should state that I have no great patriotic allegiance when it comes to making consumer purchases. "Made in the U.S.A.", Canada, China, Taiwan or Mexico, I don't really care. All things being equal, I will buy local, to support the local economy, but in truth, I'm after the best quality/price ratio I can find, with a leaning toward one end of the spectrum or the other, depending on the product. I mean no disrespect to either the U.S. or Canada, as I think both are great. Rather, my experience reflects a growing dissatisfaction over the disparity in pricing, availability, shipping costs, regulations and red tape associated with purchasing products to obtain the best deal.

The EX-Z850 is very new to the marketplace. It was debuted at the PMA Annual Convention & Trade Show in Orlando, Florida, on February 26th (press release). I was happy to get my hands on one at a price well below the MSRP of $399.99(USD), but the convolutions I had to go through, in order to accomplish this, underscores the marketplace differences between Canada and the U.S. This is something that NAFTA is supposed to help fix, but it doesn't really seem to be working too well.

Read on to learn about my purchase choices in Canada, versus the United States and the creative methods employed to obtain the better deal.

- -

New Camera Needed

 Casio EX-Z750

Our existing digital camera, an HP-735, was purchased two years ago. It has served it's purpose, but it has a number of annoyances that precipitated a new purchase: It's not pocket-sized (unless you're wearing cargo pants), it chews through batteries faster than a cow through cud, the two-second shutter delay has caught Alex a number of times, just AFTER we wanted to and you might as well forget accessing anything on the menu for 2 minutes after taking a photo, for that's how long the camera seems to be pre-occupied with writing the image file. The camera freaks out too, from time-to-time, as the menu goes blank, after turning it on, and we have to cycle the on/off switch to get it to behave. Besides, when we're cycling, it would be nice to have two cameras, as we're often separated by a mile or so and whatever opportunity for photo taking is lost, if you're not the one with the camera.

So much for our justifications. :|

The new Casio EX-Z850, despite having nearly 3X the mega-pixel capability as our HP-735, is tiny. (I'll post a photo comparison, after it arrives). According to Mike Davidson it's the size of an Altoids tin. It has a dedicated battery that provides hundreds of photos on a single charge. Shutter lag is "imperceptible". I'm not certain about the write time, but a medieval scribe could probably write faster than the HP camera, so I'm willing to take my chances.

Initial Low Price Investigations

presige

The first place I turn to, when looking for the lowest price on an item that I know I'll purchase, is the Internet. This camera was no exception. Once I had identified the Casio EX-Z850 as the camera I wanted to buy, I visited a couple of shopping bots, to find the best deal.

I'm not a shopping bot guru, but I have seen "BizRate" and recognized it. I gave it a try, typing in "EX-Z850" into the "I'm shopping for [ ]" space. Up came approximately 26 comparisons, ranging in price from $312 to $399 (USD). Prestige Camera came up as the lowest price (at the time $312 - though I suspect that it will only go down from there). I noted that they were a U.S. company and jotted down the price. THIS was my target.

In Canada, purchasing products from the United States has its inherent problems.

First is shipping. It doesn't matter if you live in the outback of Borneo, or the suburbs of Toronto, as far as a U.S. company is concerned, you're "International". To my way of thinking, there's a huge difference. Shipping a package to Borneo requires several plane trips, customs inspections and ultimately, locals have to strap the thing onto the back of buses, water buffalo, bicycles or mopeds, just to get it to its destination. In Canada, there's a simple exchange at the contiguous border and the package then travels pretty much as it did before, only in a slightly different colored mail carrier. However, as far as cost is concerned, Zimbabwe or Vancouver, it doesn't matter. I noted that the International shipping cost from one low-cost camera provider was $99 (USD), fully 1/3 of the cost of the camera! 88|

Second, is import duties. Now I don't know exactly HOW these duties are calculated, I just know that I've been on the receiving end of some pretty innocuous packages and had to pay a whole heck of a lot more than I was thinking I should.

A case in point. Rachel will kill me for telling you this story, but it's germane to my argument. I have a Paul Revere cook set that I brought with me from the States. It's a nice set, but they're not sold in Canada. When Rachel accidentally fried a pot (She put veggies on a steamer tray, but forgot to fill the pot with water. She turned the element on HIGH, only to return and smell 'something burning'. After throwing cold water into the flaming red-hot pot ... it looked the worse for wear, as the bottom was discolored, warped and the aluminum disk at the bottom, had melted). We located a replacement on eBay, for $20 (USD), but shipping was another $18 (USD) and to add insult to injury, we had to pay another $10 (CAD), at the door, for import duties. Our $20 replacement pot was now a $50+ replacement pot, thanks to shipping and import fees.

The Canadian Comparison

London Drugs

To avoid extra shipping fees, import duties and to buy through the Canadian economy, I figured that I would 'buy Canadian'. I called several of the Canadian consumer electronics retail outlets - Staples, Best Buy, Future Shop, London Drugs and Walmart. Most didn't carry ANY Casio digital cameras, let alone the new, EX-Z850 camera. One did - London Drugs. They're a great store and it didn't surprise me that they carried Casio AND that they had this new model for sale. What DID surprise me, was the price - $499 (CAD). Ouch.

Having exhausted the retail outlets, I turn my attention to the Internet. Trying to identify Canadian-only websites is tough. If one goes to www.google.ca, there's a radio button for "Canadian Only" web pages. It doesn't work. It invariably turns up U.S. sites as well. But, I gave it a go anyways.

I see now that the Future Shop now has this camera, but it didn't at the time I was looking for it. I also see that The Source has one for sale now, but again, it wasn't available when I was looking. At the time, the ONLY Canadian camera store that was selling the EX-Z850 was Henry's. Regardless, even now, their prices are ALL identical - $499.99 (CAD).

So, in Canada, the availability was less and the price was substantially more. [For those that don't know $499.99 (CAD) is roughly equivalent to $436 (USD)] All things considered, the camera cost in the U.S. was ($312) ... fully 28% less expensive.

Getting Creative

I bought the camera for my parents as a gift. They're coming to visit later this month. I'm hoping that they'll forget to take the camera, when they leave!
;)

If I had simply followed a straight-forward path and paid $99 (USD) for shipping and suffered through who-knows-how-much in import fees, one might argue (correctly) that it would have been less expensive to buy the one at my local London Drug Store. BUT, because I'm from the U.S. to begin with, I have allies there (my parents). :D

So, I concocted a new plan. I would ship within the U.S., to another U.S. destination. This cut the shipping fees from $99 to $25 (which I still thought was a tad steep, especially considering that they advertised $15 shipping fees on the shopping bot I used). I was so jazzed to get the camera, that I didn't question it. There was no State sales tax, as I was shipping from N.Y. to California (where there would have been a 7.25% National sales tax, had I bought it from my local London Drug Store).

Total cost to Scott for the gift? $312(USD) + $25(USD) shipping = $337 (USD). Had I purchased it and then shipped it up? $312(USD) + $99(USD) shipping + $???(USD) import fees = $411+ (USD). Had I bought it locally? $499.99(CAD) = $436(USD) + 7.25% National Sales Tax ($37 CAD) = approximately $468 (USD). Hmmm. Which do you think is the better deal?

I've saved $100+ USD on a $337 USD purchase, nearly a third, by being "creative". It's just too bad that one must play these games, in order to get the best deal. Shouldn't the border be more open? Isn't NAFTA supposed to allow for help in this regard? While I would have preferred to purchase locally, I'm all for getting the best deal, even if it means that I get it for my parents, instead of myself.

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Updated: 3-Jun-2006
Web View Count: 25288 viewsLast Web Update: 3-Jun-2006

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1.flag RON BAYNES Comment
06/03/06
I'm living in Canada and coincidentally was looking for exactly the same camera. So I was fascinated.

One question about the total cost of buying in Canada for delivery in Canada. The total you give is approximately: $473 USDA. That should be $473 CAD shouldn't it?.

RB
2.flag stk Comment
06/03/06
Ron,

London Drugs wanted $499.99 CAD for the camera (about $436 USD). GST would be $37 CAD (not USD). The London Drug total (at the time): $537 CAD (or $468 USD).

The Canadian dollar has strengthened since then and camera prices have come down some: London Drugs - ($449.98 CAD); Prestige Camera - ($285.00 USD).

Hope this helps.
3.flag Scott Comment
01/08/08
Looking at buying new Panasonic camera and came across this great story. Will be checking out this Casio camera on cnet. I agree it really sucks buying things in Canada now the dollar is at par you can really see how much we overpay. None of the big internet co like amazon will ship to Canada. I can see the border from my house. Thinking it is worth a trip in my boat and still pay duties and still be ahead. So much for free trade. Cheers
Scott
4.flag stk Comment
01/08/08
LOL, yeah, free trade! Taking your boat across the strait to make a purchase doesn't sound too bad though. ;) :p
5.flag JI Comment
01/11/08
I came across what appears to be a Canadian site the other day http://www.cross-bordershopping.com that offers Canadian Internet shoppers shipping from any store on their site. They use a package forwarding service that costs $25 to sign up for, but the savings to be had even with this cost make it worthwhile, not to mention the wider product selection.
6.flag stk Comment
01/11/08
JI -That link looks like a "click-through" middleman, but more interesting, was the US Global Mail service link, a mail-forwarding service in Houston, TX. Canadians can sign up & get a Houston, TX address (Box#, Suite#, Office# or Department#), suitable for FedEx, UPS and DHL deliveries.

Of course, there are fees for this, but it means you can order US products, ship them to a US address & then have them forwarded to your Canadian address.

Depending on volume and savings, you might still come out way ahead. It means the whole U.S. market is open to you (no more "we can't ship internationally" or "it'll cost you an arm and a leg").

I've found as far as shipping is concerned, Canada is considered "international" (many companies say "nope" or apply the same rates as if I were shipping to Zimbabwe or India).

Thanks for the comment!
7.flag John Reid Comment
01/20/08
Interesting, I am setting up an estore based in Canada but it will probably be of little use to Canadians, sad isnt it?

Most suppliers currently wont ship "international" which of course includes Canada and it may not be worth it anyway what with the shipping and duties (which I am trying to get a handle on).

Suppliers will ship to a US address for me to forward but I would have to fund a shipping operation in the US to do this, which isnt feasible.

I really wish there were a way around this so I can provide Canadians with the same (cost effective) access to my products but I dont see how as of now.

I bought one of those Roomba robotic vacuums a while back and was handed a bill for $90 for duty by the courier, I almost fell over !!