Don't forget to factor in Tariff rates and the fact that many haven't been addressed or changed for years. Also the cost of regulations/legalities in Canada drives our prices up.
That may be true, but that's what free trade was supposed cover in most areas of retail. Understand that US retailers in Canada use the Canadian market to improve their overall gross profit. I'm an executive headhunter in Canada (with a specialty in retail) and I can tell you there isn't a retailer here that doesn't do it. The Canadian Retailers just jump on board for even greater gross profits because they can and we, as Canadians, take it.
We buy a lot of aftermarket bike stuff online in the US and have it shipped to a Buffalo address (aka postal box). Not only is the item significantly cheaper, less taxes, but it's usually free shipping as well to anywhere on the US main land. I would love to better support Canadian retailers but I just can't justify it when the price difference is that staggering. When you cross the border and declare it, they usually say, have a nice day !!! They always seem to be looking for alcohol and cigs!!!
For the ladies on the forum, many of the expensive cosmetics we buy (only sold at Holt Renfrew/The Bay ... BTW that is totally by purpose ... these two companies will not sell high end brands unless they are exclusive to them ... this way they cut out everyone else and keep the prices high) are at least 30 to 40% cheaper at Macy's, Nordstrom etc. Same with clothes/shoes especially. As more and more US retailers and designer retailers are arriving in Canada, you will see that they all do the same thing. Target is failing miserably because they grossly under estimated that Canadians are very well aware/versed at pricing, product quality, and assortments between the borders. You can buy the same crap Target sells up here at Wallymart for less. The assortments at Target in the US are totally different to the assortment in Canada. Canada (in the retail business) is known as the bigger gross profit centre for a lower end of product. BTW, when the Canadian consumer complained to the US Target President his answer was ... then shop in the US ... REALLY!!! What kind of answer is that when you just arrived in a new country and want to succeed. Lowes did the same thing when they arrived.
Sorry ... I'm ranting now
Lower wages in the US really hasn't that much to do with it. I pay the same in NYC as I would in retirement town Florida.