One store's opinion on the dollar

[Robert1950]

Here's one music store's thoughts on the current rate of exchange and buying musical instruments:

http://kaosmusiccentre.com/Kaos_Music_Centre/Exchange_Rate_Art..html

[Maxer]

Seems to make some sense. Reading between the lines, the message is "expect a slight lowering of prices, but keep your pants on."

[Geek]

All the more reason to take our business to the USA.

[violation]

All the more reason to take our business to the USA.
Road trip! :banana:

Side note, I got this e-mail today: "AXE Music Incorporated is using savings achieved with the rising buying power of the Canadian dollar, to cut prices on most all items at both of its brick-and-mortar superstores in Calgary and Edmonton, and at www.axemusic.com, the Canadian leader for online music making!".

Then they add this link: http://www.axemusic.com/axe_slashes_prices.asp

[Crossroads]

All the more reason to take our business to the USA.

remember that the Canadian dollar has not appreciated against other foreign economies that it is the greenback that has devalued. American importers will/are being faced with paying higher prices from overseas.... meaning that it will soon be costing more to import into the US.

[Geek]

Road trip! :banana:

We gotta get a VW "Hippie Bus" for such an adventure. We'll spray bomb geetah's and amps (or reasonable facsimile's of) and the Guitar's Canada logo on it, pile as many of us we can fit in it (remove the seats, they waste valuable space) and HEAD'ER ON DOWN SOUTH!!!! :rockon2:

[noobcake]

Road trip! :banana:

Side note, I got this e-mail today: "AXE Music Incorporated is using savings achieved with the rising buying power of the Canadian dollar, to cut prices on most all items at both of its brick-and-mortar superstores in Calgary and Edmonton, and at www.axemusic.com, the Canadian leader for online music making!".

Then they add this link: http://www.axemusic.com/axe_slashes_prices.asp

Yeah I received an e-mail from axe too. I gotta say, AxeMusic is probably the best major online Canadian guitar retailer, they actually seem to listen to their customers:smile:

[Michelle]

Yeah I received an e-mail from axe too. I gotta say, AxeMusic is probably the best major online Canadian guitar retailer, they actually seem to listen to their customers:smile:

Me too. I like AXE, I've had good dealings with them, I noticed that a left-handed ESP B255 in delicious black cherry is like $489, pretty sure it was near $700 earlier this year.

I like Geek's idea! Better make it a school bus though. Merry Pranksters! :wave:

[Michelle]

Arghhhh! It's $448!

http://www.axemusic.com/product.asp?numRecordPosition=1&P_ID=12844&PT_ID=67

I'm gassin now, EMG Hz pups, 3-band active eq, neck-thru, 24-fret......better get to work, frig.

[Paul]

I think that KAOS is actually pretty close to the truth. The only things that are getting dramatically cheaper are things that are sourced in USD. This is a function of the USD getting weaker on the world markets, not the CDN$ getting stronger.

While the price of oil is going up, it's going up in USD, and so is the CDN$, so we are not being hit as hard as the US. Also the Chinese currency floats within a fixed range pegged to the USD, so Chinese imports are getting a bit cheaper for us. The challenge is that exchange rates have changed dramatically much faster than a container ship can be filled, floated to Hongcouver and unloaded. As a retailer do you sell your stock based on what you paid for it, or what it costs to replenish?

Items where the source currency is the Yen really won't see much of a swing in price. The CDN$ vs. the Yen, (or the Euro), has not seen the steep climb like with greenbacks.

Those of us who ordered a Rickenbacker at a 70 cent exchange rate are actually going to get a decent deal when the instrument finally comes in. I've been waiting since Feb/Mar of '05 for a 370/12.

[Starbuck]

Well I'm going on the weekend to check my fav store out to see if I see a difference cause on their site it says....


"We've adjusted our prices to reflect our Canadian dollar."


http://www.theartsmusicstore.com/

[RIFF WRATH]

Is the "going south" hippy cruise bus sanctioned by guitars canada cruise dept?
cheers
RIFF

[dwagar]

uh, on the Kaos site, since when do we pay 7% duty on US mfg product? Maybe on Asian import, but US should be duty free under NAFTA.

[ne1roc]

Well I'm going on the weekend to check my fav store out to see if I see a difference cause on their site it says....


"We've adjusted our prices to reflect our Canadian dollar."


http://www.theartsmusicstore.com/

:rockon: Yup, its my favorite guitar store too! A long drive from Mississauga but worth it!

[FenderMan]

uh, on the Kaos site, since when do we pay 7% duty on US mfg product? Maybe on Asian import, but US should be duty free under NAFTA.

You are correct. If it is American made we don't pay the extra duty. If you call Canada Revenue (or customs now I guess) they will give the full details on any guitar/bass you want to import. I did that once and they wanted to know country of manufacture and the dollar amount. I gave that to them and they came back in a couple of minutes with all the charges I needed to be aware of. They also warned me of using couriers that charge import fee above and beyond what is required by law (without mentioning UPS directly of course).

[FenderMan]

:rockon: Yup, its my favorite guitar store too! A long drive from Mississauga but worth it!

Looks like a fun store. Wish we had something like that here.

[Paul]

uh, on the Kaos site, since when do we pay 7% duty on US mfg product? Maybe on Asian import, but US should be duty free under NAFTA.


They may be referring to PST or GST, which is usually due on imports from the US. Duty/tariff is payable depending of the country of origin, not the country from which we imported it. Even if Line6 is a US company, if the product is mfg. in China, and shipped to us from a US warehouse, the Candian Border Services Agency will treat the item as Chinese in origin.

For what I buy, I find I get better total value for my money dealing with a local brick and mortar place where I have a good relationship with the staff. Musicians Friend may honour warranties on an amp, but if I deal with a local store, I KNOW that if my under-warranty amp fails they will make sure I'm taken care of before I leave the store with a back-up amp. You don't get that kind of service through mail order/interweb purchases.

[gproud]

I'm a little outraged to see one of our online fx sellers has suddenly switched his pricing from US to Canadian. I've never agreed with Canadian Online stores charging in US in the first place, but whatever. But to see 1 suddenly switch his prices to Canadian $'s because he's taking a bath on US $'s is a big middle finger to the consumer as far as I'm concerned. And no, as far as I can see, he hasn't adjusted his prices any; he's just changed the currency. The few pedals I've been interested in are the same price in CAD that they were in US.


edit: I should mention that it's only a certain line that I was looking at where I noticed the sudden change in currency. I have no idea if it's across the board or not. Still not ethical business practice IMO.

[zontar]

I don't like buying guitar stuff online--I want to see it in person.
But some things are okay--and I do want a couple of smaller things, but would probably just order from a store.
I doubt I'd find them cheaper online once I pay for shipping & handling.

But if I were shopping online, I'd go through a US site right now & take advantage of the dollar.
If the Canadian sites aren't co-operating with us, why should we help them out?

[suttree]

Next, Canadian’s earn a significantly higher wage then Americans making the cost of selling product in Canada higher then the US. Also, we as employers have to pay Employment Insurance, Canada Pension, Employer Health Tax and Workplace Safety Insurance for all employees making our workforce far more expensive the a typical American equivalent.

this is a huge oversimplification. that article was really just ad copy. bottom line is this: the store needs to see a certain profit to remain open. i don't (and i suspect most of us don't) begrudge them a reasonable profit. but like jroberts says, there's a limit. i always go to my local store with a price on something to see if they can/will match it. they usually come close enough to make it possible to justify.