Canda vs. US exchange rate
Jan 18th, 2007, 09:19 AM
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Canda vs. US exchange rate
We are from the US and are planning possible trips to Winnipeg, Vancouver and Montreal. Our Canadian friends in these cities have considered comming here to the US this summer to Minnesota instead of us traveling there.
I am wondering if Canadian goods and services are cheaper for a US citizen to purchase in Canada or is it cheaper for a Canadian to purchase goods and services in the US. I don't neccessarily need to know the exchange rate but more so the "buying power" compared to each others' countries. Please take into consideration that Minnesota being in the midwest has a lower cost of living than the east and west coast as I imagine it might be in Canada.
thanks,
Jorr
I am wondering if Canadian goods and services are cheaper for a US citizen to purchase in Canada or is it cheaper for a Canadian to purchase goods and services in the US. I don't neccessarily need to know the exchange rate but more so the "buying power" compared to each others' countries. Please take into consideration that Minnesota being in the midwest has a lower cost of living than the east and west coast as I imagine it might be in Canada.
thanks,
Jorr
Jan 18th, 2007, 01:14 PM
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I don't know the answer but it seemed my Mother got some bargains when she went to Arizona for the winters from Canada - everything from linens and cookware to dental floss. We get a kick out of not paying tax when we shop in Oregon and we found gas was cheaper there.
What kind of taxes do you pay in Minnesota? Here in BC, nearly 14% is added to almost everything. I think the answer would vary depending which parts of Canada and the USA were being compared. Hopefully someone else can give you a more knowledgeable answer.
What kind of taxes do you pay in Minnesota? Here in BC, nearly 14% is added to almost everything. I think the answer would vary depending which parts of Canada and the USA were being compared. Hopefully someone else can give you a more knowledgeable answer.
Jan 18th, 2007, 02:38 PM
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You have asked questions that are difficult to answer. I did a Google search for Cost of Living Comparisions.
On the CNNMoney.com website, I found a comparison between Minneapolis and Vancouver. If Minneapolis was the base case, Vancouver’s expenses were as follows:
Groceries : 23% more (that is, more than Minneapolis)
Housing : 23% more
Utilities : 11% more
Transport : 21% more
Health care : 5% less
Mercer Human Resources Consulting does a Cost of Living Survey across many of the world’s cities. I’ve extracted some city names from the Worldwide Rankings for 2006. The top of the list (the smallest number) is the most expensive city. The bottom of the list (the highest number) is the cheapest city.
1. Moscow
10. New York City (most expensive in USA)
47. Toronto (most expensive in Canada)
56. Vancouver
71. Calgary
76. Houston
80. Montreal
90. Ottawa (cheapest of Canadian cities surveyed)
97. Denver
102. Seattle
109. Cleveland
122. Detroit
Unfortunately neither Minneapolis nor Winnipeg appeared on the Mercer list. My sense is that Winnipeg is quite a bit less expensive than Toronto, Vancouver and Calgary.
Without knowing what your and your friends’ incomes are, it’s impossible to know for whom it would be easiest or most difficult to travel (from an affordability point of view).
It also depends on what there is to do and see in a given city. Vancouver, for example, is quite an expensive city on the face of it. Yet, because of its natural beauty, it is possible to go there, walk in the free city parks and nearby wilderness areas, and not spend a cent. Houston, on the face of it, is a cheaper city than Vancouver. But in Houston I pretty much have to spend money.
On the CNNMoney.com website, I found a comparison between Minneapolis and Vancouver. If Minneapolis was the base case, Vancouver’s expenses were as follows:
Groceries : 23% more (that is, more than Minneapolis)
Housing : 23% more
Utilities : 11% more
Transport : 21% more
Health care : 5% less
Mercer Human Resources Consulting does a Cost of Living Survey across many of the world’s cities. I’ve extracted some city names from the Worldwide Rankings for 2006. The top of the list (the smallest number) is the most expensive city. The bottom of the list (the highest number) is the cheapest city.
1. Moscow
10. New York City (most expensive in USA)
47. Toronto (most expensive in Canada)
56. Vancouver
71. Calgary
76. Houston
80. Montreal
90. Ottawa (cheapest of Canadian cities surveyed)
97. Denver
102. Seattle
109. Cleveland
122. Detroit
Unfortunately neither Minneapolis nor Winnipeg appeared on the Mercer list. My sense is that Winnipeg is quite a bit less expensive than Toronto, Vancouver and Calgary.
Without knowing what your and your friends’ incomes are, it’s impossible to know for whom it would be easiest or most difficult to travel (from an affordability point of view).
It also depends on what there is to do and see in a given city. Vancouver, for example, is quite an expensive city on the face of it. Yet, because of its natural beauty, it is possible to go there, walk in the free city parks and nearby wilderness areas, and not spend a cent. Houston, on the face of it, is a cheaper city than Vancouver. But in Houston I pretty much have to spend money.
Jan 18th, 2007, 03:16 PM
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The answer (but not the one you wanted to hear) is yes and no. In other words, it depends on what you buy. In past years, Canadians would drive from Winnipeg to Minnesota to buy Christmas presents because it was so much cheaper. During that same time period, we found many things cheaper in Canada, even with the taxes, than here in Minnesota.
Jan 18th, 2007, 04:38 PM
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The Mercer cost of living listing seems in line with my European travel experiences. However, given that the index was computed with a relatively cheap £, I wonder what impact today's rates of exchange would have on the index?
The index I read was computed with a relatively cheap pound Sterling: $1.76 = £1.00 The current rate of exchange right now is about $1.98 US or $2.32 CA = £1.
In London that £7.00 pizza for one may seem like a good buy until I realize it is costing me $14.00 US.
Or a £20 dinner looks innocent until my mental calculator reads $40.00.
If Moscow is more expensive than London, I cannot not afford to go there!!
The quality of living listing is the one I disagree with the most. Washington D. C. was listed well up on the list. I could not wait to move away from there and every time I go back, I celebrate the fact I don't have to stay!!
The index I read was computed with a relatively cheap pound Sterling: $1.76 = £1.00 The current rate of exchange right now is about $1.98 US or $2.32 CA = £1.
In London that £7.00 pizza for one may seem like a good buy until I realize it is costing me $14.00 US.
Or a £20 dinner looks innocent until my mental calculator reads $40.00.
If Moscow is more expensive than London, I cannot not afford to go there!!
The quality of living listing is the one I disagree with the most. Washington D. C. was listed well up on the list. I could not wait to move away from there and every time I go back, I celebrate the fact I don't have to stay!!
Jan 18th, 2007, 04:56 PM
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Some economists use the Big Mac Economic Index to compare countries.
Canada and the USA are pretty close.
Taking theecxchange rate into account, mid-range hotels are cheaper in teh USA; middle-lower restaurants, some of which are not operatingin Canda or are few in numbr, are less expensive int he USA. Denny's, for example.
Gascosts more in Canada, after you giure out how to translate liter and gallons and miles and kilometers.
A dress on sale at Winners is comparable to a similar dress in the USA. A good digital camera is the same price in either country, but one brand of extra lenses is much higher in Canada, and other brands are the same as the US.
A loaf of sliced white bread is probably cheaper in the USA>
And so on.
BAK
Canada and the USA are pretty close.
Taking theecxchange rate into account, mid-range hotels are cheaper in teh USA; middle-lower restaurants, some of which are not operatingin Canda or are few in numbr, are less expensive int he USA. Denny's, for example.
Gascosts more in Canada, after you giure out how to translate liter and gallons and miles and kilometers.
A dress on sale at Winners is comparable to a similar dress in the USA. A good digital camera is the same price in either country, but one brand of extra lenses is much higher in Canada, and other brands are the same as the US.
A loaf of sliced white bread is probably cheaper in the USA>
And so on.
BAK
Jan 18th, 2007, 07:59 PM
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I am an American living in Canada, whose clients are mainly American. I primarily get paid in U.S. dollars and travel back & forth between the 2 countries a couple of times a month.
I can tell you that I have found taht almost without exception it is cheaper to buy goods in the U.S.
With the exchange rate hovering at around .85 CDN or 1.15 U.S., the seemingly accepted 30% markup for goods in Canada makes it really not even close (look at the tag on any book ... or item at a store such as The Gap that has identical merchandise in both countries and you'll see about a 30% difference in marked prices).
Not to mention that taxes tend to be higher (14% in BC vs. 5% in my original home state)...
Also, and this may be the biggest factor -- for some reason the U.S. has bigger, better and more frequent sales. More buying power/competition I guess has something to do with it. As an example, I recently saw a pair of Nine West shoes I liked in the U.S., marked at $39.99 US on sale (from a regular price of $59.99). I didn't buy them, but after thinking about them (ha!) went to the Nine West store here in BC to see if they had them. They did - and they were marked $129.99 CDN.
Again, not even close.
On the flip side, you'd definitely get a hotel room in Winnipeg and Vancouver cheaper than the big cities in the U.S. -- NY, LA, DC, etc.
That's just my experience, anyway.
I can tell you that I have found taht almost without exception it is cheaper to buy goods in the U.S.
With the exchange rate hovering at around .85 CDN or 1.15 U.S., the seemingly accepted 30% markup for goods in Canada makes it really not even close (look at the tag on any book ... or item at a store such as The Gap that has identical merchandise in both countries and you'll see about a 30% difference in marked prices).
Not to mention that taxes tend to be higher (14% in BC vs. 5% in my original home state)...
Also, and this may be the biggest factor -- for some reason the U.S. has bigger, better and more frequent sales. More buying power/competition I guess has something to do with it. As an example, I recently saw a pair of Nine West shoes I liked in the U.S., marked at $39.99 US on sale (from a regular price of $59.99). I didn't buy them, but after thinking about them (ha!) went to the Nine West store here in BC to see if they had them. They did - and they were marked $129.99 CDN.
Again, not even close.
On the flip side, you'd definitely get a hotel room in Winnipeg and Vancouver cheaper than the big cities in the U.S. -- NY, LA, DC, etc.
That's just my experience, anyway.
Jan 19th, 2007, 08:27 AM
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xandohead09, I checked the back of my wall calendar. The price in Canada is 70% higher. Even when factoring in the exchange rate its probably 60% higher in Canada.
Sounds like the east and west coast no mattter if in Canada or US is more expensive but generally cheaper in US as a whole. Maybe my friends on the east and west may want to come here and take advatage of some great shopping prices but then we would like to go to Vancouver and Montreal and would have to cut back a bit on spending.
Sounds like the east and west coast no mattter if in Canada or US is more expensive but generally cheaper in US as a whole. Maybe my friends on the east and west may want to come here and take advatage of some great shopping prices but then we would like to go to Vancouver and Montreal and would have to cut back a bit on spending.
Jan 19th, 2007, 11:17 AM
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jorr, I thought about my post last night. I really wanted to come back to say that Canada is an amazing place to visit and you should definitely do it if you can! I absolutely love it and Winnipeg, Vancouver and Montreal area all lovely and diverse experiences. (However, based on your question about cost only, I still stand by my original post!)
Jan 19th, 2007, 12:55 PM
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I've been to Ontario several times over the past few years and I really don't see a big cost difference between there and California. I think it depends on what you're buying and what store you're buying it from.
Books, etc. are definitely overpriced, but I wonder if it's just because they pre-price them to guarantee a really good exchange rate.
When I visit, I don't find that my money goes that much quicker than it does when I'm home, but then I'm pretty frugal to begin with and watch my money carefully.
I definitely wouldn't not go simply because it might not be cheaper than at home unless the only reason you're going is to stock up on cheap goods.
Books, etc. are definitely overpriced, but I wonder if it's just because they pre-price them to guarantee a really good exchange rate.
When I visit, I don't find that my money goes that much quicker than it does when I'm home, but then I'm pretty frugal to begin with and watch my money carefully.
I definitely wouldn't not go simply because it might not be cheaper than at home unless the only reason you're going is to stock up on cheap goods.
Jan 22nd, 2007, 10:32 AM
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I think that "stuff", such as clothes, shoes, electronics, books, magazines, cosmetics are cheaper in the US. But the cost of services such as accomodations, entertainment, transportation is generally cheaper in Canada.
Jan 22nd, 2007, 12:10 PM
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jorr, we in the Midwest do have less costly goods, IMHO than coastal USA. Period. Services as well, but not in all cases.
My trip to Toronto was the most per day I ever spent outside the USA borders. And I've been to 8 to 10 European countries, but not London.
The only thing I bought there was a pair of sunglasses. Food and gas were especially higher priced.
My trip to Toronto was the most per day I ever spent outside the USA borders. And I've been to 8 to 10 European countries, but not London.
The only thing I bought there was a pair of sunglasses. Food and gas were especially higher priced.
Jan 26th, 2007, 08:58 PM
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Just a warning, if you are buying outside the US and using a credit card to pay with, you will be charged 3% of whatever your total purchase is. I found this out the hard way on a very expensive purchase. So, in essence, if the exchange rate is 1.17, you are actually only getting 1.14.
