If you’re a Canadian who has bought something from the States recently, then you know that the Canadian dollar is in the toilet. At the time of writing this post, $1 US = $1.18 Canadian. That’s awesome if you’re in the States and you’re buying Canadian merchandise. (So, Americans, this is a great time for you to load up on AppleCheeks, AMP, Bummis, and Funky Fluff from stores north of the border.) But if you’re in Canada and your favorite cloth diapers are imported through the States, it’s a little less awesome. $1 Canadian = 85¢ USD.
What a Weak Canadian Dollar Means
When the Canadian dollar is weak, it hurts the small cloth diaper retailers who order from the States. The wholesale price to buy a case of bumGenius 4.0 doesn’t change… it’s still the same price in USD, but the diminished value of the Canadian dollar means that it’s costing your local retailer a lot more to buy.
We’re losing Canadian distributors because of the increased import costs. The Canadian distributor of Charlie Banana has severed their relationship. We no longer have a Canadian distributor for CJ’s BUTTer or TotsBots. We’ve just lost our Canadian distributor of Rockin’ Green. All of these things mean that retailers will have to make some decisions. And those decisions will impact you.
Order more to save on the shipping costs
Making larger orders to compensate for the weak Canadian dollar to save on shipping means that they’ll have to tie up more of their budget. They’ll have to let their stock run down more so that they actually have a need to order. It means more items will be out of stock.
Raise the prices
If stores continue ordering as they used to, before the Canadian dollar tanked and we lost distributors, they’ll find that it’s going to cost them a lot more. It’ll cost more to ship. They’ll have to pay more in duty. And they’ll run the risk, of course, of their orders getting caught in customs. But in order to continue running their store as they had in the past, they’re going to have to pass these increases on to you by raising their prices.
Stop carrying some products
A lot of retailers may find themselves saying good-bye to some brands that are not their top sellers. They might find themselves in the position that they can’t afford to import lukewarm sellers; they may trim down their selections… which means less selection for you. Some stores may even close down without your support.
What Can YOU Do?
Be understanding. Remember that while the price of gas dropping is fantastic and wonderful for you (unless you live in Fort MacMurray or your partner works in the oil sands), there are other aspects of running the stores that go beyond shipping. If a retailer increases her prices, it’s not because she’s out to milk you. Raising the prices by 50¢ to a dollar per diaper will not suddenly make her rich… but it may help offset the decreased Canadian dollar enough to help her continue selling the cloth diaper brands that you love.
Have you been impacted by the Canadian dollar?
Image credits: worradmu | FreeDigitalPhotos.Net