Tag Archives: comparison

Are prices in Canada higher than in the United States?

I’ve noticed that many prices seem to be lower here in the United States than in Canada. Am I imagining it? With the help of my Canadian friend Annette (an experienced shopper), I decided to find out.

Methodology

I selected a basket of 20 common retail items (food, alcoholic beverages, and fuel), and compared the prices for these items in Vancouver, Canada (my home) and San Antonio, Texas (my location when this crazy idea struck me). Annette and I gathered regular retail prices (not sale prices) not including sales taxes from comparable retail outlets (to the extent that they are available in both cities) within a few days of each other. The American prices were converted to Canadian dollars at the current exchange rate. Where quantities or package sizes differed, the prices were adjusted to equivalent volumes.

Findings

The table below shows the items we checked, the U.S. price, the Canadian price, and the percentage difference of the Canadian price compared to the U.S. price.

Product U.S. Canada Percnt
Frosted Flakes (760g box) $3.92 $7.23 84.6%
Cheerios (396g box) $2.90 $5.02 73.3%
Milk (3.78L = 1 gallon) $4.32 $4.56 5.4%
Eggs (12 Large Grade A) $1.71 $2.63 53.5%
Coors Light beer (24×355 ml cans) $20.39 $43.99 115.7%
Corona Extra beer (12 x 330 ml bottles) $13.25 $25.69 93.9%
Yellowtail Cabernet Sauvignon (750 ml bottle, Australia) $5.07 $12.99 156.2%
Woodbridge Merlot (750 ml bottle, California) $8.64 $13.99 61.9%
Coca Cola (12 cans) $3.04 $5.97 96.4%
Coca Cola (2 Litre bottle) $1.41 $1.87 32.9%
Chicken thighs skin-on, bone in (per pound) $5.04 $4.98 -1.2%
Ground beef (85% lean, per pound) $3.25 $6.28 93.0%
Ground beef (89% lean, per pound) $3.79 $7.98 110.3%
Ground beef (93% lean, per pound) $5.08 $9.88 94.5%
Bananas (per pound) $0.49 $0.58 18.5%
Fuji Apples (per pound) $1.70 $1.19 -30.1%
Yellow Onions, medium (per pound) $2.43 $1.28 -47.3%
Russet Potatoes (per pound) $0.90 $0.48 -46.5%
Gasoline (regular, per Litre) $0.91 $1.34 47.9%
Diesel fuel (per Litre) $1.01 $1.41 39.4%

Analysis

Vancouverites are paying a lot more!

Of the 20 items on the list, 16 were more expensive in Canada. 3 produce items were significantly cheaper in Canada (apples, onions, & potatoes), and there was a trivial difference in the price of chicken thighs. All other items were between 5% and 156% more expensive in Canada.

The price differences were the biggest for wine and beer (61% to 156% higher). The probable reasons for this are: a government monopoly on alcohol distribution in British Columbia, high government taxes on alcoholic beverages, and restrictions and tariffs on importing alcohol into Canada.

Grocery items (other than the few that were cheaper) were between 5% (milk) and 110% (ground beef) more expensive in Vancouver, with the remaining 9 items between 18% (bananas) and 96% (Coca Cola) more expensive.

Vehicle fuel was priced 47% higher in Canada for regular gasoline and 38% higher for diesel fuel. This is due, in part, to higher taxes.

I recognize that this was a very limited sample size (20 items, 2 stores, 2 cities, none of which were randomly chosen), and so few general conclusions can be drawn from these results. But it does confirm my suspicions. In my experience, groceries, alcohol, and fuel are consistently more expensive in Canada than in the United States.

Why is this the case? What can Canadian consumers do about it? Stayed tuned for more on this topic.

The Search for our RV (Part 2)

After several weeks of researching motorhomes and narrowing down my list (see The Search for our RV (Part 1)), there were still 10 different models we were considering, with nothing significant to separate them.  With a bout of analysis paralysis coming on, we applied a bit of intuition and started to focus on the ones that we simply liked the best.  Feeling the need to step back a bit, Diane suggested that we go down to Seattle for a night to inspect and drive a couple of our preferred units.  Sometimes a change of perspective is all one needs.  Besides, what problem can’t be solved by a night away in nice hotel, a seafood dinner overlooking the water, and plenty of wine?

We inspected 5 Class C motorhomes (those built on a van or truck cab and chassis) in detail:

Winnebago View showing front and right side.

Winnebago View 24J

The View has good aerodynamics and the best fuel economy.  The driver seats rotate and it has the highest quality interior of these motorhomes.  Unfortunately, it only has a 2=burner stove and no oven, so these would need to be changed.  It is also the most expensive.

Winnebago Access showing front and right side.

Winnebago Access 26Q

The Access is the largest of these motorhomes.  It has a queen-sized, walk-around bed in the rear.  It also has good Winnebago quality.  It has the most counter, closet, and storage space, and the largest water and propane tanks.  It is also 8.5 meters (28 feet) long and has the worst fuel economy of the bunch.

Forest River Sunseeker showing front and right side with slide extended.

Forest River Sunseeker 2450s

The Sunseeker has a full Queen=sized bed with Serta mattress, and heated enclosed tanks and dump valves. It is one of the most popular Class C motorhomes in North America, offering good value with a lot of features for the money.

Forest River Solera showing front and left side with slide extended.

Forest River Solera 24s

The Solera has a long electric awning and a large slide.  It is similar to the Winnebago View but of lesser quality and has a lower price.

Jayco Redhawk showing front and left side

Jayco Redhawk 26XS

The Redhawk was just introduced this year.  It has a 32 inch flat screen TV and some other flashy features but cannot be ordered with any options. It is the cheapest of the RVs we considered, abd appeared to be of very low quality.

I compiled a list of 411 desirable features that Class C motorhomes might have.  We then completed this checklist (a spreadsheet actually) by reviewing the manufacturer’s specifications for each motorhome in detail.  Based on the knowledge I gained from How to Select, Inspect, and Buy an RV, also from RV Consumer’s Group, we physically inspected  each of the units.  Four were in BC – 2 in Kelowna, 1 in Abbotsford, and 1 in Langley, and 1 was in Mt. Vernon, WA (north of Seattle).  An inspection takes about 1 to 1.5 hours, and involves getting underneath and into every nook and cranny of the motorhome. Note that doing this can be hazardous to your health, as I learned during an inspection in Kelowna when I stood up into the corner of an extended slide from a neighbouring RV.

Closeup of Patrick's head with bandage pulled back to revearl a large wound on right temple

RV shopping is dangerous business!

The RVs we were considering are based on 2 different chassis.  Two are based on the Mercedes-Benz Sprinter 3500 chassis which is shorter, narrower, lighter, has a 6-cylinder Turbo diesel engine, and is much easier to drive.  Three are based on the Ford E450 chassis which is 12 inches longer, supports motorhomes that are 10 to 12 inches wider, has a 12-cyclinder gasoline engine, and drives like a tank.  Sprinter-based motorhomes get 12-17 miles per gallon (mpg) using more expensive diesel fuel and the Ford only gets 8-11 mpg.  Sprinters also cost about $10,000 more, a difference in price that cannot be made up in fuel savings over the life of the RV.  On our upcoming North American trip, I estimated that a Sprinter would save us about $2,300 on fuel versus the Ford.

The biggest single influence on our decision was the test drive.  I drove one motorhome on each of the two chassis.  The Sprinter was much easier to drive and park, though it sways noticeably when driving over bumps, when walking around inside, and in high winds.  This is something that can be improved with after-market products like sway bars, enhanced shocks, air cushions, and stabilizer jacks, which could add as much as $6,000 to the cost of the motorhome.  The Ford felt rock-solid, but it was heavy, and I could hear the huge engine draining my wallet when we drove up hill.  Because it is wider it was harder to make turns while staying completely in my lane, and although we could barely fit its width in a parking space, we wouldn’t be able to open the doors if there were vehicles in the adjacent spaces.  Since Diane plans to drive the RV this trip, she wanted a Sprinter, but was concerned by the swaying.

In the end, we decided to buy a new RV in the United States. The cost of a new RV was significantly lower than an equivalent unit in Canada.  Even with the extra expenses associated with getting it back to and into the country, it cost the same as a used RV in Canada.

Which motorhome would you have selected?  In my next post I’ll reveal which one we chose!