For the past few weeks, as the Loonie has inched higher in value, Canadians have been aiming sights across the border to take advantage of their strong currency and the US prices that are often inexplicably lower than those in Canada.
A four-litre jug of milk in Woodstock, New Brunswick, costs $6.70. Ten minutes west, across the border in Houlton, Maine, the equivalent amount of milk costs only $3.89. The latest Harry Potter book costs $45.99 in Woodstock, but only $34.99 in Houlton. Why these prices are showing savings of 24% to 42% across the border while the dollar reached parity is beyond most experts.
For Canadians who don't want to or can't make the drive, the online market is becoming a much more attractive shopping site for everything from watches and clothing to high-definition TV sets and online software.
While no one measures Canadian cross-border spending, virtual or otherwise, Paulina Sazon, a direct-marketing strategist at Canada Post, said the volume of shipments through the Canadian postal service’s special service for American retailers has increased 38 percent.
Following a meeting with the U.S. treasury secretary, Finance Minister Jim Flaherty said the high dollar makes it easier for Canadian companies to import technology.
The good news for Canadian businesses is the ability to take advantage of online software in USD and the opportunity to save thousands of dollars as of late.
Online software vendors are taking note to the increased volume in sales calls and inquiries, and are expecting increased sales to compensate for the imbalanced US dollar.
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