rendo said: steven787 said: To be fair your taxes on electronic goods (which are paid in wholesale, so you don't even see them) are much higher. US prices add taxes after the retail price, and they are much, much lower.
Ah, the advantages of having no medical coverage, free university system, true social welfare programs, etc. |
Canada throws on taxes after retail too. In Canada, as I said, PS3 6gig retails at $549.99 + taxes (14% btw, a bit more so in Quebec) and the Wii is $279.99 + taxes. What irritates me is that Quebec taxes a tax. First you have the retail price, let's say $100 flat. Anywhere else in Canada it'll come to $114.00 with taxes of 14%. In Quebec they put on the PST which is 8% so it comes to $108.00 then they TAX that amount with the GST, which is 6% so $114.48. An extra .48 cents on the dollar adds up in the end. |
I was talking about Australia, sorry for the confusion.
But to address you issue with Wii Canada or Australia v. US prices, they aren't determined by the exchange rate with the US. Prices are determined by other factors.
The biggest one is exchange rate with the Yen (not the Dollar) Canadian and Australian moneys are growing and US dollar is declining, but those two currencies are more volatile, the USD is steady. So there is more inherent risk.
Also there are other costs. The employees working in the stores selling video games in the US make around $7/hour with no medical/retirement/good unemployment/hour regulations/one week of vacation/etc. I don't know what canadian workers make but I am willing to bet they make more and have better benefits. US minimum wage in CAN$7.00, most provinces hover around CAN$8.20. Australian minimum wage is AUS$13.61 or CAN$11.37.
Fuel is cheaper in the US. Not just for transportation either, The Air Conditioning and lighting in the US is cheaper (thanks to us not ratifying the Kyoto Protocols). Where I live gas is US$2.60 a gallon, that is US$.65 a liter or Canadian CAN$0.69,gas in ontario is what CAN$0.90. Gas in Australia is AUS$1.30/liter, so that would be CAN$1.12 or US$1.01.
Imagine the difference in the cost of flying the Wii's out there (higher airport taxes than US, Higher Fuel), Air Conditioning that Mall, Paying and taking care of benefits for the Warehouse, Drivers, Sales, Management, cleaners, accountants, etc.
US business is cheap to run, and it goes to the consumer. Don't try to take that away :), that's all we get.