Canada...$50 for 5 qt Castrol Edge

[Garak]

Originally Posted By: dblshock
Canadian healthcare and Rx is alot cheaper, quit complaining.

That's true, but it's not that our tax on oil (or any ordinary retail product) is 50%, either. We get hit on a fair bit of pricing, some worse than others. Oil and tools are two of the worst examples. I remember posting a link in a thread some months back comparing a runout dial indicator, same brand, on both sides of the border. The version in the States was around $40, and in Canada, was over $450. You can come across a lot of stuff on Amazon in the States that is less than half what it is here. Books have been a sore spot up here, too.

Without getting political, I can live with tobacco and liquor and gas taxes being rather high here. I get that. But, when a jug of Mobil 1 is at the Regina Walmart for $50 Canadian before tax and the one at the Minot Walmart is $26 US before tax, you see the problem. I certainly get that in most parts of the States, there is significantly more competition than there is here. Online purchasing is also more evolved there. However, North Dakota and Saskatchewan are probably more similar, from a demographics and marketing perspective, than are Saskatchewan and Quebec, for instance. That state and this province are sparsely populated with a lot of open area and a lot of agriculture and similar economic activities. Business taxes are fairly low, so it's not like they have to recoup a giant amount to send the feds and the province. But, I digress....

As StevieC has pointed out, and I've seen myself, I can go to the States and buy a lot of stuff significantly cheaper than up here, even after exchange, and sometimes even duty. The headlight assemblies on my Audi 200 Turbo were something like 1/4 of the price for OEM in the States, too.

 

[newbe46]

Originally Posted By: Garak
Originally Posted By: dblshock
Canadian healthcare and Rx is alot cheaper, quit complaining.

I get that. But, when a jug of Mobil 1 is at the Regina Walmart for $50 Canadian before tax and the one at the Minot Walmart is $26 US before tax, you see the problem.


So apples to apples, $50 Canadian vs $26 USD. What contributes to the difference in price? Crude is priced in an open market I presume, so the barrel of crude bought in Canada should be the same the barrel bought in the States?

What's next, higher operating costs, higher profit margin, tax/duty on petroleum?

 

[sir1900]

The markup on oil is ridiculous but there are enough uninformed folks out there who will buy a jug of their favorite brand of synthetic for $50 and not bat an eye.

I frequently see fools pay $50 for a 4.4L jug of M1 instead of picking up the 5L of PP for $31 (when on sale).

Same with Royal Purple. It is safe to assume Canadian Tire moves a fair amount of RP. You never see any dust on the bottles of RP.

 

[IndyIan]

I guess having high normal pricing and having regular sales allows retailers to match prices to what two different market sectors are willing to pay. No point in charging $28 everyday for oil some people will pay $50 for right? And if no competitors have reasonable regular prices, the retailer doesn't loose the folks willing to buy the product at $28 when they have a "sale"...
They are a bit silly though in having syn and dino oil on sale at the same time, as I can't resist a name brand dino jug at $16.
One thing that is alot cheaper here than the US, is new cars. Often we get the same prices or lower as the US, but in canadian $.

 

[StevieC]

My bypass system going in shortly will make it very cost efficient even if I had to do yearly oil changes.

 

[Garak]

Originally Posted By: newbe46
So apples to apples, $50 Canadian vs $26 USD. What contributes to the difference in price? Crude is priced in an open market I presume, so the barrel of crude bought in Canada should be the same the barrel bought in the States?

What's next, higher operating costs, higher profit margin, tax/duty on petroleum?

None of that applies though, well, except the higher profit margin, since $26 US isn't $50 CDN, and the taxes aren't that significant. I do know within a very tight margin what Canadian Tire and Walmart are paying for oil. They sell their HDEO, for instance, at double the price at regular price I can purchase it from at Imperial Oil or Shell Canada, and that's me walking in off the street without waving a corporate discount.

Those businesses that are using Imperial Oil for service fill for commercial and agricultural equipment are paying half again what I pay. Me claiming that CT and Walmart Canada are marking up 100% is actually generous to them. They're actually marking up by about 4 times the price they pay for the product.

RP, brought up by sir1900, has a lower markup and consequently poorer discounts when on sale. Also, as he indicates, people are dumb enough to pay these prices, which is why these high profit margins carry on. I don't begrudge businesses from making money. As long as people are silly enough to pay that kind of money, it will carry on.

Much of that is Canadian Tire's operating model. You can't just go to Canadian Tire and shop, thinking, oh, I need a jug of QSGB, a Fram Ultra, a genuine Shop Vac, and a Karcher pressure washer. You have to be lucky, or plan ahead by sale, or go in and have brand and/or tier flexibility (i.e. maybe the orange can is on sale, Castrol GTX is an alternative, and I'll take the house brand vacuum), or simply go in and bite the bullet and pay full price. Take a look at Canadian Tire's weekly flyer sometime. You'll see it's filled with 30%-70% off specials, not just on a couple products, but all over the place, from paint to laundry detergent to Christmas ornaments to Coke to motor oil to tools.

I don't mind buying something when I miss a 10% sale. But, if I need something right now, go buy it there because it's "convenient" and see that it goes on sale at 70% off the next week, it's insane. Contractors don't buy there for a reason. If I need a tool right now, I'll go to Home Depot or the parts jobber or even Walmart (since they go stupid mostly on motor oil, not tools). If it's something that can wait, Canadian Tire works. And I admit that at least lately, it's working better, since the website functionality has improved. I can find out how many of each product is available where and quite accurately and reliably. They're also carrying significant quantities of the on sale product, to the point it likely will last the duration of the sale and beyond.

The top reason I bought from a distributor for so long was because, as per previous mention, before improvements, Canadian Tire would advertise PYB, for instance, at $12 a jug. The sale would start Friday morning. CT would bring in a couple boxes of jugs. I wouldn't get the flyer until Sunday, while the discounted product was gone half an hour after opening on Friday. I end up being in Canadian Tire Sunday afternoon for nothing, looking at oil for regular price, which I can do at any time. Sometimes a rain check was possible, many times it wasn't; rain checks are a hassle in either instance.

Chasing a sale is bad enough. Chasing my own tail is worse.

 

[newbe46]

Impressive, that is a pretty spot on analysis/rant of CT business model. I do mean this wholeheartedly, nothing sarcastic.

Looking at the number of CT shopping bags under my kitchen counter, I guess I was too brainwashed by CT and never really second guess why I chose to buy from them.

 

[irv]

CT is great if you don't mind waiting for things to go on sale, and they usually do, especially oil, which I see quite often.

For the need it now things, just keep your bill and as long as it's within 30 days (I believe?) take your bill in and get the sale price.

I personally prefer CT over WM because in my neck of the woods, CT seems to have the things I need more so than what WM does, including oil.

Not that I have frequented the WM just west of me in Whitby maybe more than twice, but if one gets the chance to compare 2 that are close together, you will see each store carries a different variety of things so maybe that is why I prefer the CT that is close to me over the WM that is close to me?

I also like PartSource, which is basically CT, as with my last PUP purchase at $31.99, that was a much better deal than the PP at CT for $39.99.

A little bit of leg work/Google searching can save one a pile of money if one takes the time.

 

[StevieC]

The only thing that bugs me about CTC is trying to get on-sale items. I always have to go the day before the sale buy it at regular price and then go back the following day when it is on sale and get a refund of the difference because usually they won't have enough of the sale item and won't give you a rain check.

I have 3 CTC's within a short driving distance from me and they are all like that.

 

[irv]

Originally Posted By: StevieC
The only thing that bugs me about CTC is trying to get on-sale items. I always have to go the day before the sale buy it at regular price and then go back the following day when it is on sale and get a refund of the difference because usually they won't have enough of the sale item and won't give you a rain check.

I have 3 CTC's within a short driving distance from me and they are all like that.

I don't work Fridays so that isn't usually a problem for me but there have been times when I have went in right before the sale ends, like the following Thursday, and have found what I was looking for.
I believe it was the last time I was in when I noticed none on the shelfs. I thought they were sold out but then I asked a sales guy, who said he would check in the back, and sure enough, he came out with the 2 jugs I requested.

 

[dgunay]

Insurance, wireless plans, internet, groceries (especially veggies) and car parts are generally more expensive in Canada. You need to be patient to find a deal.

Originally Posted By: irv
CT is great if you don't mind waiting for things to go on sale, and they usually do, especially oil, which I see quite often.

For the need it now things, just keep your bill and as long as it's within 30 days (I believe?) take your bill in and get the sale price.

I personally prefer CT over WM because in my neck of the woods, CT seems to have the things I need more so than what WM does, including oil.

Not that I have frequented the WM just west of me in Whitby maybe more than twice, but if one gets the chance to compare 2 that are close together, you will see each store carries a different variety of things so maybe that is why I prefer the CT that is close to me over the WM that is close to me?

I also like PartSource, which is basically CT, as with my last PUP purchase at $31.99, that was a much better deal than the PP at CT for $39.99.

A little bit of leg work/Google searching can save one a pile of money if one takes the time.


I've got 3 jugs of PP 5w30 for $26.xx (Canadian pesos) each from CT - $10 MIR = $17.xx few weeks ago. I doubt you can find PP 5w30 in US cheaper than $15 (usd).

 

[Garak]

Originally Posted By: newbe46
Looking at the number of CT shopping bags under my kitchen counter, I guess I was too brainwashed by CT and never really second guess why I chose to buy from them.

I have very few problems with Canadian Tires products. The tools are great. I may not be enthusiastic about Motomaster wipers, tires, or filters, but there is a lot of good stuff in their stores and generally reasonable selection. As irv points out, there's nothing wrong with their selection. I've bought a lot there over the years, too. When I need something that one would consider a "hardware" or home item, Canadian Tire is a good choice to go to if you want a very good chance at finding the product and don't want to be running all over the city on a hunt. If you're in a pinch, they'll have it.

You know, though, when they have a high end, lifetime warranty/lifetime calibration warranty torque wrench on sale twice a year for 80% off, that's not a loss leader, but probably a ridiculous markup in the first place. Basically, you can equip a garage very nicely with Canadian Tire tools - very nicely. Just don't plan to go in and do it in one day. You had better spread it out over several months to capture as many specials as you can.

StevieC: Try their website a bit more. It's improved, believe it or not. For those who don't mind going back for when the price changes, ordering online for pickup would be an improvement. Perhaps your local stores are stocked as poorly as ours used to be when a sale began. Their online parts catalog is nowhere near what you're used to seeing online from the competition, but at least for most items, you can order it for pickup, or at least find out how many is at whatever location, and that number seems to be accurate. They seem to be confused as to whether they want to allow buying oil on special online for pickup or not. Sometimes the button is there, other times it says store purchases only.