MAC Pricing in Canada Compared to Other Countries

[Deirdre]

Re: MAC needs to adjust Canadian prices to reflect the Currency!

I already asked the question. I asked if in light of other companies in the retail sector reducing their pricing (ie. Walmart, Chapters-January) would they be having similar price cuts.

I thought their arguments weak. I can think of stronger ones: ie. they bought the stock at under par, and the dollar has since changed (I think companies buy up to a quarter ahead of the retail dates), and until backstock cleared out, this wouldn't be feasable; that to keep MAC in Canada, Canadian pricing would remain in effect, as the American population numbers offset the lower costs of retail items, etc. But anyway, here it is!

Quote:

Dear Valued Consumer, Thank you for taking the time to contact M.A.C. In response to your concern, we hope you can appreciate that our products are not priced arbitrarily, but rather in accordance with the cost of their production. Some of these factors include maintaining a state-of-the-art research and development facility, obtaining the finest quality ingredients, product safety testing, and shipping and distribution costs. We do feel our products offer excellent value for the prices charged at the retail level. Currently, there are two prices for our products. There is a United States price and there is a Canadian Price. Consumers are charged accordingly depending upon their residence. Once again, thank you for this opportunity to respond to your concerns. We hope you will continue to enjoy and have confidence in our quality products. Sincerely,

And to people shopping South, yes, higher retail sucks, but job losses in retail sectors that have lost said business isn't very good either. Ultimately we're propping up the American local economies, whilst allowing ours to go under. I'm still paying the same amount I was a year ago, so I don't see that I'm paying 'extra' per se - it's just the USD has fallen below my own CDN. Does that make sense?

 

[Mac_Mocha]

Re: MAC needs to adjust Canadian prices to reflect the Currency!

That's rough...they should definitely adjust the prices....

 

[BlahWah]

Re: MAC needs to adjust Canadian prices to reflect the Currency!

To be fair, the admin cost to adjust prices would not be worth it if the CDN$ drops back down. We've been at par but not for that long, and I wouldn't worry about adjusting prices if I may have to undo all of it a few months down the road, like Glow posted. As much as I hate the fact that products are cheaper in the States at this moment, as Deidre noted, I'm not actually paying anymore than I would have it the dollar didn't rise.

 

[MaySum]

Re: MAC needs to adjust Canadian prices to reflect the Currency!

Quote:

Originally Posted by ginger9 That's kind of like saying why should the Gas stations lower the Gas prices in sync with the price of where crude oil is trading. Because consumers have rights and should not be gauged. I don't know if I want to get into all of it (ie give an education on purchasing power/economics/currency exchange etc) as this is really a makeup forum. But I'll try to clarify this a bit. Firstly, Canada is just north of the US and we have a Free Trade Treaty between the two countries. Which basically means we don't have the duties nor the import/export regulations that we may have with other countries, not to mention cheaper shipping costs because we are geographically so close. Secondly, I really wish people would read my posts carefully and not put words in my mouth. I said "most" of MAC's products are made/shipped from Canada. Most does not mean all. And I never said I expect prices to be equal globally but I expected a little adjustment in Canada at least. Lastly, I can't comment on how the Sterling or Euro has been performing against the US dollar but I do know that the Canadian dollar is very strong right now and due to our Free Trade relationship with the US there really is no reason to keep prices unchanged other than the fact that the companies want to make more off the consumers. Plainly put, all the Canadian dollar sales Estee Lauder makes will be converted back to US dollar with a significant gain due to the appreciation of the Canadian currency. This is not due to a rise in shipping, production, import costs to MAC. It's purely based on taking advantage of where the currency is. Look at it this way 100 cad dollar used to convert to 88 usd, now 100 cad will get you 104usd. Pretty sweet deal for Estee Lauder dontcha think?

I'm sorry, I did read ur post and understood that u said most and not all manafacturing was in Canada, I was merely pointing out that I didnt see how precisely it was relevant.
Admittedly, I may be on the wrong track, but firstly - as I said the MSFs are made in Italy, therefore to follow ur logic (how I see it) these should be cheaper in Italy than anywhere else (though, I'm not sure where they are packaged so that may remove this point entirely).
Secondly, (my main point) - if the manafacturing is done in Canada, I dont see why prices should be dropped there, surely if anything they should be *raised* in the US? in order to match the manafacturing costs?

oh well, I guess I'll never understand this, mainly cos I'm quite sure it just doesnt work that way. For instance, Molton Brown, a British Company, who manafactuers over here, is about *double* the price over here than in the US! (with prices in pounds basically being converted to dollars without facturing the exchange rate) irregardless of taxes, shipping costs etc etc. This occurs with countless other British companies (e.g. Floris and many more I'm sure). Thats just the way it is, everything is cheaper in the US.

 

[jillianjiggs]

Re: MAC needs to adjust Canadian prices to reflect the Currency!

for those saying you know people who want to buy cars, tvs, etc in the states - wouldn't the taxes and duties you would have to pay at the border completely override your savings?

 

[gigglegirl]

Re: MAC needs to adjust Canadian prices to reflect the Currency!

Referring to your comment JillianJiggs, apparently it can be more advantageous. Of course, you have to see really how much the savings are in the US. From my research (not looked at cars though) I would save several $$ per item, so with a BIG HUGE haul, it'd really help! Plus I don't have some stores like Sephora or Ikea here in Wpg. Duty (to my knowledge) is mainly the sales tax we pay on items in Canada/provinces. IE In Canada GST=6%, PST in MB=7%.

For example, there is an american site who has dual online stores (one for Can, one for US) who's boots are $150 MORE in Canada---so when we are at/near parity with the USD, we are getting GOUGED!

 

[cinnamongurlee]

Re: MAC needs to adjust Canadian prices to reflect the Currency!

so if they aren't going to lower prices in Canada, perhaps MAC should increase the prices in the US to reflect the drop of currency value.

i don't think that it would be a popular vote, and yes that was a joke. ( i don't think anyone's prices should be increased) but it might help others understand that Canadians are being gouged on the value of retail goods

 

[rouquinne]

Re: MAC needs to adjust Canadian prices to reflect the Currency!

Quote:

Originally Posted by MaySum I'm sorry, I did read ur post and understood that u said most and not all manafacturing was in Canada, I was merely pointing out that I didnt see how precisely it was relevant.

it's relevant because there is NO duty or tarrifs on the product here in Canada like there is in other countries.

and our dollar has been rising against the US currency over the past year, so it's not like this is a surprize to anyone.

i wrote to MAC and got some song and dance about how they try to be competitive.

i will be going to the US to buy the product made just outside Toronto....

and we are not at/near parity - we are getting close to 10% above the US dollar!

 

[SMMY]

Re: MAC needs to adjust Canadian prices to reflect the Currency!

One thing that no one here has brought up is the relative size of the two markets. I have no idea, but I would imagine sales in the US are much greater than sales in Canada. EL probably keeps prices lower over here because the sheer amount of sales here allows them to and still turn a hefty profit. I am curious to know what the difference in sales for MAC is in the US versus Canada?
And I know it's not fair and I'm not defending it, but MAC is a business first and foremost. It isn't in the business of being fair as much as delivering products to the consumer at prices that the consumer will purchase them at. If they were losing sales significantly in Canada due to their pricing strategy, I'm sure they would consider readjusting it, but I imagine that isn't the case.

 

[zoe__]

Re: MAC needs to adjust Canadian prices to reflect the Currency!

i know. For the euro too , 1 euro= over 1.4 dollars but a lipstick is 14 dollars and 17 euros, go figure

 

[caroni99]

Re: MAC needs to adjust Canadian prices to reflect the Currency!

Quote:

Originally Posted by SMMY One thing that no one here has brought up is the relative size of the two markets. I have no idea, but I would imagine sales in the US are much greater than sales in Canada. EL probably keeps prices lower over here because the sheer amount of sales here allows them to and still turn a hefty profit. I am curious to know what the difference in sales for MAC is in the US versus Canada? And I know it's not fair and I'm not defending it, but MAC is a business first and foremost. It isn't in the business of being fair as much as delivering products to the consumer at prices that the consumer will purchase them at. If they were losing sales significantly in Canada due to their pricing strategy, I'm sure they would consider readjusting it, but I imagine that isn't the case.

Interesting thought.

Sephora in Canada has already started to drop prices in store to the same level of prices in the U.S.

I notice that things on the (Canadian) MAC website that in the past would have sold out in days are still there months later...also I don't know about anybody else but I was at a pretty popular mall on Saturday and it was damn near empty the only place in the mall that was crazy was Wal-mart who announced that they would be lowering prices and charging the US equivalent.

I have some gift certificates remaining so I will buy MAC here but once those are gone I will just purchase in the US...My b/f is American and travels to the US at least 3x/month...I can't justify paying more for something I can get for significantly cheaper elsewhere.

Retailers in Canada are definitely feeling the pressure as more Canadians cross the border or shop online.....it will be interesting to see what MAC does.

 

[user79]

Re: MAC needs to adjust Canadian prices to reflect the Currency!

Well, you might as well wait for hell to freeze over if you think MAC Canada is going to lower their prices. If anything, they will raise US prices to match. It wouldn't be business smart to come down in price for a product that is selling well. They would only come down in price if they are making losses.

 

[BlahWah]

Re: MAC needs to adjust Canadian prices to reflect the Currency!

Quote:

Originally Posted by caroni99 Sephora in Canada has already started to drop prices in store to the same level of prices in the U.S.

Oh really? *drumming fingers together*

 

[ginger9]

Re: MAC needs to adjust Canadian prices to reflect the Currency!

Quote:

Originally Posted by SMMY One thing that no one here has brought up is the relative size of the two markets. I have no idea, but I would imagine sales in the US are much greater than sales in Canada. EL probably keeps prices lower over here because the sheer amount of sales here allows them to and still turn a hefty profit. I am curious to know what the difference in sales for MAC is in the US versus Canada? And I know it's not fair and I'm not defending it, but MAC is a business first and foremost. It isn't in the business of being fair as much as delivering products to the consumer at prices that the consumer will purchase them at. If they were losing sales significantly in Canada due to their pricing strategy, I'm sure they would consider readjusting it, but I imagine that isn't the case.

What is happening is the Canadian Consumers are basically taking on the burden of the currency disparity. MAC hasn't raised US prices nor lowered Canadian prices even thought the CAD is worth more now. And yes, the US market is bigger than the Canadian and hence we got the short end of the stick.

I get the whole EL is there to make a profit blah blah. but I as a consumer have a right to voice my opinion and not just "accept" it because "this is what is it". Yes I am one but together we are many. Even if I know they won't change anything, I choose not to buy any MAC from Canada it's as simple as that. I'm not forcing anyone to do the same, it's my opinion.

Also I'm checking out Sephora if they've made adjustments...and if this is true they get my business.

Let me just say if they decided to raise MAC prices in the US there will be riots on the streets of America!

 

[VDUB*BELLA]

RANT: MAC Canadian pricing vs US pricing

Since the Canadian dollar is virtually on par with the American dollar it is beyond me why MAC has such a huge gap in pricing differences.

For example;

Blush:

US $17.50 vs. CDN $22

Paintpots:

US $16.50 vs CDN $20

182 Buffer Brush:

US $45 vs CDN $55 !!!!!!!!!!!!

Hey MAC!
What gives??

Especially MAC is manufactured half an hour away from me and are a Canadian company
To me this is so unjustifiable. Especially after all the media hoopla surrounding Canadian prices compared to US prices which resulted in many companies having to adjust the prices to compete with business going south of the border.

Here's what they have to say:

Quote:

Thank you for taking the time to contact M.A.C. While we appreciate your concern, M.A.C does not set the retail prices at which our products are sold. The net price we charge the retailers for our products is based upon the cost of their production and distribution. Some of the factors that impact these costs include maintaining a state-of-the-art research and development facility, obtaining the finest quality ingredients, producing technologically advanced formulations, and conducting product integrity testing. Additional factors that affect the cost of the product include costly shipping expenses, the cost of fuel, currency fluctuations and customs duty or tax. For decades, M.A.C has been recognized for providing innovative products of the highest quality. We believe that our products offer excellent value for the price. Please be assured that your comments regarding Canadian prices have been noted and will be circulated to our Management executives, so that this matter may be appropriately addresses. We very much appreciate the effort you made to share your experience with us, and we certainly value you as a consumer. Once again, thank you for this opportunity to respond to your concerns. We hope you will continue to enjoy and have confidence in our quality products. Sincerely, Fanta Kamara Representative Global Consumer Communications

Thoughts?

 

[CaraAmericana]

Re: RANT: MAC Canadian pricing vs US pricing

http://specktra.net/f165/mac-needs-a...urrency-83362/

 

[kalikana]

Re: MAC needs to adjust Canadian prices to reflect the Currency!

Yup, I noticed that Sephora started dropping some of the prices.

I know, it frustrates me too. And I hate how strict Canadian customs is now. I know they have to be, but still.. ugh. lol.

 

[gigglegirl]

Re: MAC needs to adjust Canadian prices to reflect the Currency!

I wish Sephora would drop many other things! I notice b/w US and Canada some things aren't so bad (2 or 3 bucks, fine) but I want to get the Stila Cherry Crush lip stain--thats 24 in the US and 31 in Canada! GRRR! I'm thinking I'll wait til I make a trip.

 

[VDUB*BELLA]

Re: MAC needs to adjust Canadian prices to reflect the Currency!

Since the Canadian dollar is virtually on par with the American dollar it is beyond me why MAC has such a huge gap in pricing differences.

For example;

Blush:

US $17.50 vs. CDN $22

Paintpots:

US $16.50 vs CDN $20

182 Buffer Brush:

US $45 vs CDN $55 !!!!!!!!!!!!

Hey MAC!
What gives??

Especially MAC is manufactured half an hour away from me and are a Canadian company
To me this is so unjustifiable. Especially after all the media hoopla surrounding Canadian prices compared to US prices which resulted in many companies having to adjust the prices to compete with business going south of the border.

Here's what they have to say:

Quote:


Thank you for taking the time to contact M.A.C.

While we appreciate your concern, M.A.C does not set the retail prices at
which our products are sold. The net price we charge the retailers for our
products is based upon the cost of their production and distribution. Some
of the factors that impact these costs include maintaining a
state-of-the-art research and development facility, obtaining the finest
quality ingredients, producing technologically advanced formulations, and
conducting product integrity testing. Additional factors that affect the
cost of the product include costly shipping expenses, the cost of fuel,
currency fluctuations and customs duty or tax.

For decades, M.A.C has been recognized for providing innovative products of
the highest quality. We believe that our products offer excellent value
for the price.

Please be assured that your comments regarding Canadian prices have been
noted and will be circulated to our Management executives, so that this
matter may be appropriately addresses. We very much appreciate the effort
you made to share your experience with us, and we certainly value you as a
consumer.

Once again, thank you for this opportunity to respond to your concerns. We
hope you will continue to enjoy and have confidence in our quality
products.

Sincerely,

Fanta Kamara
Representative
Global Consumer Communications

 

[Meryl]

Re: MAC needs to adjust Canadian prices to reflect the Currency!

Quote:

Originally Posted by ginger9 Even if I know they won't change anything, I choose not to buy any MAC from Canada it's as simple as that. I'm not forcing anyone to do the same, it's my opinion. Also I'm checking out Sephora if they've made adjustments...and if this is true they get my business.

I've been keeping an eye on Sephora prices (I actually keep the USD and CAD prices written in a little notebook that carry I in my purse, since I can't remember numbers

) and as far as I can tell, they have not lowered prices. I'm checking out the expensive skin-care lines, such as DDF, Peter Thomas Roth, MD Formulations, etc and they are still 31% higher than the States.

Prescriptives is much worse. The new serum I wanted was 60% more at Holt Renfrew than at Saks or NM. I don't usually make a fuss at cosmetic counters but when I heard the price, I told the SA I would go to the States to purchase.

Actually that's not true. I'm not going to the States at the moment, but I wanted him to know I wouldn't purchase until the price went down. Although I know it won't happen.

When I asked about it at Sephora, the SA said it wasn't their doing, that the cosmetic companies set the prices for Canada.

No one wants to take the blame. Or the responsibility.