11-15-2007

Why are Canadian prices still higher than U.S. Prices?

Despite the fact that AMSOIL has recently implemented a price discount on all Canadian orders, questions remain as to why Canadian customers are not paying the same or lower prices as U.S. customers.

In today’s world economy it may seem that pricing should be fixed regardless of where the product is made or where it is being sold. However, for many U.S. and Canadian companies this isn’t the case. The primary reason why price parity isn’t possible is that AMSOIL is a U.S. based company selling products in a foreign country (Canada). Therefore, pricing in Canada will be higher due to business and administrative issues that are independent of currency exchange rates. These issues include wages, taxes, import/export requirements, administrative costs, corporate structure and bilingual labeling, just to name a few. These issues contribute to higher costs associated with AMSOIL products sold in Canada. The company will continue to do its best to keep costs down and to maintain fair product pricing for all customers in the U.S. and Canada.