As a Canadian consumer, I’m used to getting the short end of the stick once in a while.  It’s not uncommon to find that something is 15-20% more expensive here than it is across the border; the foreign exchange rate is typically quoted as the reason, even though we’re pretty close to par with the US dollar (at the time of writing, USD$1 = CAD$1.06323 per XE.com).  Sometimes, though, the price difference is so ridiculous that you have to hope that it’s a pricing error.

Case in point: Photek’s Softlighter II was recommended by Shawn on NSOP as a versatile light modifier.  Looking at the 46” SL-5000 model, with a removable 8mm umbrella shaft.  MSRP on this item is USD$84.50; “street price” at B&H Photo is USD$59.95 for this particular unit.  To buy two and have them shipped via USPS International Express Mail (USD$65) would come to USD$184.90, or CAD$196.60 at today’s exchange rate.  It’s safe to figure about CAD$200 all-in after you factor in credit card forex fees.

Okay, fine.  But I prefer to support Canadian retailers when I can – especially since it avoids delays at the border and idiotic grey-market warranty issues (that’s the topic for another post, though).  One of my favourite sources for photographic gear, Vistek, offers the SL-5000 (per Photek’s site, Vistek is their only authorized dealer in Canada).  The catch?  They want CAD$130 for one unit.  The all-in price for two, after taxes and shipping?  CAD$288.59 – about CAD$90, or 44% more.  Taking shipping out of the equation at both retailers, you’re looking at twice the price.  Huh?  That can’t be right.

So, I e-mailed Vistek to find out what the story is.  Here’s their reply (verbatim):

Thank you for your email. This is to confirm that we fully understand, in these economic times, that people are looking to get the most for their dollar and are more able and willing to do comparative shopping than ever before so we try to price match whenever possible. Though the internet has opened a whole new world of cross-boarder shopping manufacturers, unfortunately, still look at North America as a separated marketplace attaching uneven pricing to items sold in the US versus those sold in Canada, as such we are simply not able to match American pricing.

Please note that most manufacturers maintain this by not honouring cross border warranties as well. For example, Nikon Canada will not service items under a Nikon US warranty. Please be sure to confirm that your warranty will still be valid if purchasing from an international retailer.

Sounds to me like they’re suggesting that their hands are tied, since pricing is set by the manufacturer.  So, I e-mailed Photek as well with the same question.  Their reply (verbatim):

WE SUPPLY OUR DEALERS AT THEIR SPECIAL PRICING....WE HAVE NO SAY AS TO  WHAT PRICE THEY  DECIDE TO SELL .

I AM SORRY THAT WE CANNOT BE OF ANY FURTHER ASSISTANCE.

Okay, so Vistek vaguely implies that Photek is to blame, and Photek less-vaguely implies that Vistek is to blame.  Of course, without seeing any dealer price lists, it’s hard to know who’s doing responsible for the markup, and since these price lists are confidential, it’s bound to remain a secret.

I’m not trying to imply that Vistek is a bad retailer (they’re fantastic), or that Photek is trying to screw anyone (I doubt it, and certainly haven’t done enough research to assert that), or that B&H is a fantastic vendor (they’re okay).  Many industries (or manufacturers within said industries) are still operating on the basis of outdated foreign exchange rates and therefore don’t see a 50% markup for Canadian markets as unusual.  Other industries and retailers have done their best to bring pricing in line with current rates.  The fact remains that most Canadian consumers will react with their wallets, either shopping in the US, or avoiding overpriced products from certain manufacturers altogether.

What would you do?  Buy from the US, or look for a more fairly-priced competitor’s product in Canada?