Mini cheaper for Canada than US

Chrislaf · Dec 11, 2019

Also, it’s still cheaper to order the MM direct from DJIs store (making sure your Country preferences say Canada), than to order it from say Amazon or another Canadian retailer even after paying the exchange. When you order from DJI other than the current exchange rate, what you pay is everything included (taxes, shipping, brokerage fees). When you order from say Amazon.ca, you pay in Canadian dollars which is usually close to the current exchange rate if you paid in US dollars, PLUS the taxes which overall turns out more expensive.

Example:
MM
DJI store US$349 = CAN$459.69
Amazon.ca CAN$459.99 + $59.80(13% taxes) = 519.79

So currently in Canada it is still cheaper to buy from DJI directly.

Chris

ThorDar · Dec 11, 2019

DanMan32 said:
Let's reverse this. For $599CAD, I can get a Mini combo in Canada.
According to Google, If I take that $599CAD to the bank and exchange it, I'd get $459USD. That's not enough to buy the combo in the US as you would be $40 short since the USD price here in the US is $499, not $459.

And I did say as long as I could get through customs with my purchase, meaning not being hit with a customs fee. I'm also excluding taxes in the comparison. We're only discussing retail price.

So why is it $40USD cheaper in Canada than US? Because of the tariff war between US and China. Canada isn't participating in the war.

I see what you're getting at. I thought we were talking about Canadians going to the US to buy it. You're talking about an American coming to Canada to buy it. In that case, it would be cheaper for the American. As you say, you'd save about $40 US on the Flymore. But it has nothing to do with tariffs. It's purely the current exchange rate. The US dollar is worth more than the Canadian dollar in the global money markets. There was period in the 2000's when it was the reverse. It was cheaper for Canadians to buy from the US than locally. That's not the case currently.

anotherlab · Dec 11, 2019

DanMan32 said:
Let's reverse this. For $599CAD, I can get a Mini combo in Canada.
According to Google, If I take that $599CAD to the bank and exchange it, I'd get $459USD. That's not enough to buy the combo in the US as you would be $40 short since the USD price here in the US is $499, not $459.

And I did say as long as I could get through customs with my purchase, meaning not being hit with a customs fee. I'm also excluding taxes in the comparison. We're only discussing retail price.

So why is it $40USD cheaper in Canada than US? Because of the tariff war between US and China. Canada isn't participating in the war.

You don't want to exclude the taxes in the comparison. If you bought the drone locally in Niagara (NY), you would have an 8% sales tax. If you bought it in Niagara (ON), you would have a 15% Harmonized Sales Tax.

Fly More Combo purchased in Niagara (NY) $499 USD + 8% sales tax = $539. Bought online with 4% sales tax = $519
Fly More Combo purchased in Niagara (ON) $449 USD + 13% HST = $507

It would still be cheaper in Canada, but not be much when you factor in driving time and gas costs. And in the (unlikely, but not 0%) chance that they inspect your vehicle, having to pay the duty and the fine would make the trip less than enjoyable for you.

DanMan32 · Dec 12, 2019

ThorDar said:
I see what you're getting at. I thought we were talking about Canadians going to the US to buy it. You're talking about an American coming to Canada to buy it. In that case, it would be cheaper for the American. As you say, you'd save about $40 US on the Flymore. But it has nothing to do with tariffs. It's purely the current exchange rate. The US dollar is worth more than the Canadian dollar in the global money markets. There was period in the 2000's when it was the reverse. It was cheaper for Canadians to buy from the US than locally. That's not the case currently.

No you still don't get it. We're eliminating the exchange rate as a factor by using the same denomination.
We're comparing USD with USD and CAD with CAD. Not USD with CAD where the exchange rate would be a factor.

Even today normally cost of living factor makes goods cheaper in the US for everything else, but not DJI products produced in China and sold by a Chinese company. For DJI products it's the reverse where it's cheaper in Canada. Why do you think this is only for DJI products?

DanMan32 · Dec 12, 2019

anotherlab said:
You don't want to exclude the taxes in the comparison. If you bought the drone locally in Niagara (NY), you would have an 8% sales tax. If you bought it in Niagara (ON), you would have a 15% Harmonized Sales Tax.

Fly More Combo purchased in Niagara (NY) $499 USD + 8% sales tax = $539. Bought online with 4% sales tax = $519
Fly More Combo purchased in Niagara (ON) $449 USD + 13% HST = $507

It would still be cheaper in Canada, but not be much when you factor in driving time and gas costs. And in the (unlikely, but not 0%) chance that they inspect your vehicle, having to pay the duty and the fine would make the trip less than enjoyable for you.

End result that's true, but the argument is about base retail price difference using same currency.
For customs, they definitely would have an issue since you're circumventing the tariff.

ThorDar · Dec 12, 2019

DanMan32 said:
No you still don't get it. We're eliminating the exchange rate as a factor by using the same denomination.
We're comparing USD with USD and CAD with CAD. Not USD with CAD where the exchange rate would be a factor.

Even today normally cost of living factor makes goods cheaper in the US for everything else, but not DJI products produced in China and sold by a Chinese company. For DJI products it's the reverse where it's cheaper in Canada. Why do you think this is only for DJI products?

You can't eliminate the exchange rate. That's the point I'm making. If you live and work in the US and you get paid in US dollars, you'll get more per US dollar in Canada than you would in the US. The reverse applies to Canadians. If you live and work in Canada and get paid in Canadian dollars, you'll get less per Canadian dollar in the US than you would in Canada.

DanMan32 · Dec 12, 2019

That's not having to do with the exchange rate then. Exchange rate is ratio between USD and CAN. What you just described is difference in cost of living. Refer to my comparison of prices in NYC Vs Florida. Exchange rate is an attempt to account for cost of living difference between countries using different currencies, but goods have different value differences.

Things sold "nationally" tend to have the same price even though regionally priced items will have differences. IOW the Mini price in Los Angeles is the same as in Florida, even though items like food or gasoline are more expensive in LA.

Still, the difference in DJI pricing between our countries (using same currency) is in the opposite direction as other goods.

ThorDar · Dec 13, 2019

DanMan32 said:
That's not having to do with the exchange rate then. Exchange rate is ratio between USD and CAN. What you just described is difference in cost of living. Refer to my comparison of prices in NYC Vs Florida. Exchange rate is an attempt to account for cost of living difference between countries using different currencies, but goods have different value differences.

Things sold "nationally" tend to have the same price even though regionally priced items will have differences. IOW the Mini price in Los Angeles is the same as in Florida, even though items like food or gasoline are more expensive in LA.

Still, the difference in DJI pricing between our countries (using same currency) is in the opposite direction as other goods.

The same principles apply within Canada. Some prices are set by the manufacturer and are the same across the country, like the Dji Mavic Mini or The Big Mac. The Mini is sold at numerous retailers and it's the same price everywhere, $459 for the basic and $599 for the Flymore + tax, (the tax varies from province to province). Other things, like fuel and food, can and does vary from one area to another.

The discussion we're having is the difference in price on an item that is fixed by the manufacturer between countries. Two entirely different comparisons.

One of the reasons this has been confusing is that Dji has chosen to display the price for Canadians on their website in US dollars. If you check some of the other countries prices, many are displayed that countries native currency, such as Australia ($799 AUD for the Flymore). When a Canadian or Australian, for example, orders from the Dji website, what is charged to their credit card is in their dollars. IE, I know someone who ordered the Flymore combo, the creative kit and Refresh from the Dji website and his credit card was billed $678 even though the total on the order page would have been $506 US. The $678 was close to what he would have paid had he purchased it at a local Canadian retailer.

The exchange rate is not a ratio nor based on inflation,, though inflation can be one of multiple factors that determine the rate. Here's a good explanation of what it is and how it works: