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  • “Country Pricing” Hurts the Bottom Line for Canadian Businesses. Fight Back with U.S. Purchasing and Cross-Border Cross-Docking.

“Country Pricing” Hurts the Bottom Line for Canadian Businesses. Fight Back with U.S. Purchasing and Cross-Border Cross-Docking.

By: Elliott Smith
A recent report from the CBC highlights what Canadian entrepreneurs have long known: things cost more in Canada.
According to the CBC:

Canadians are paying far more than Americans for the same products because of a systemic and unjustifiable markup scheme by many manufacturers, a retail expert says.

A Marketplace report on Canada-U.S. price gaps found Canadians paying higher prices — more than double in some cases — for the same retail goods because of an industry phenomenon called “country pricing.” (Read the full article here)

Frustrating as this is, it’s a known issue to most Canadian business owners. It’s why many Canadian business leaders choose to make large purchases in the United States.  And, it’s why UCanTrade offers cross-border cross-docking to reduce the costs of making equipment and inventory acquisitions south of the border.
Canadian entrepreneurs can achieve substantial savings by making their large purchases in the United States, and taking advantage of the lower cost of merchandise stateside. UCanTrade can help realize the full benefit of these savings by offering cross-docking services for BC companies to take advantage of free or reduced shipping rates offered by American suppliers.
UCanTrade, Inc. president Jim Pettinger has been in the cross-border warehousing and logistics business for almost three decades, and he’s seen the shift towards increased US purchasing by Canadian businesses. According to Pettinger, “More Canadian companies are now looking at more and more purchases in the U.S. In some cases, U.S. suppliers provide free shipping to a U.S. address. In other cases Canadian companies want to consolidate several small shipments into a larger one to minimize customs clearance costs. This is where UCanTrade can step in and provide cross docking services and work in conjunction with our client’s Canadian Customs Broker to expedite this process at a low cost.”

Country Pricing Pettinger adds that recently, UCanTrade was able to help a Vancouver, BC-based company save money on shipping costs with cross-docking services for a major acquisition of industrial equipment. UCanTrade’s client purchased a quantity from an American supplier, a supplier that offered free delivery to a U.S. address, but charged steep rates for international delivery to Canada. From our 20,000 square foot warehouse in Ferndale, Washington, we were able to receive the shipment on behalf of the Canadian client, and hold the equipment until a truck was sent down from British Columbia to pick them up. Our client was able to utilize our facility to cross-dock and take advantage of a supplier’s offer of free shipping to a U.S. address, dramatically reducing the cost of their equipment purchase.

Country pricing is a frustrating fact of life in Canada. But savvy Canadian businesses can get the upper hand by making purchases in the United States, and working with UCT to cross-dock and take advantage of favorable domestic shipping rates. Call UCanTrade today to find out how our expertise in cross-border cross-docking can help your British Columbia business fight back against “country pricing” and protect your bottom line.
TradeTips blog is published by UCanTrade, Inc., your cross-border experts since 1984.
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UCanTrade
Website: www.UCanTrade.com
Phone: 360-380-6900
Email: info@UCanTrade.com
Twitter: @UCanTrade

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Logan West