Shopping is cheaper in the U.S.: An excellent way for me to limit my shopping urges

FB @ FabulouslyBroke.com

– January 13, 2012Posted in: Money

It all started while I was looking for a black sweater in a decent price range.

Specifically, a pullover, perhaps with 3/4 length sleeves, in a nice fabric.

I saw this lovely sweater online at J. Crew (love the blue too!), but the minute I looked at the prices, I knew I wouldn’t be buying it, let alone buying any more clothes in Canada.

Let’s just take a look, shall we?

$65 USD for the sweater, $8.95 flat rate shipping (I could also go in-person in Toronto), but free shipping if you order over $175.

But wait!

For Canada, the price jumps up a whopping $21 USD, never mind the fact that they have a bloody store here IN TORONTO (Yorkdale mall), and they don’t even offer free shipping, but it is $1 extra:

Conclusion? I am not buying clothes in Canada any more. I can hold off, and this is a huge motivation to NOT shop.

I will only buy Canada-only products or second hand items

Aside from shopping on Etsy (love!), I will only go into those stores that don’t exist in the U.S., and/or are not U.S. owned at least.

For instance, Lululemon prices are about the same in the U.S. as they are in Canada, save for a couple of bucks, but nothing like a 30% price jump.

I also like independent designers, which is why I frequent stores on Queen Street and I like knowing the designer is in Canada, for instance.

I am not squeamish about secondhand items, although I know some people are (I totally respect that). If I can save money off the retail price of something, why the heck not!?

Even better if I can buy from fellow friends

I am patient, and frankly this stuff is unnecessary

Besides, I don’t really need any of this stuff.

I “need” a black or navy sweater, but to save 30%? Heck yes, I’ll be patient and wait all year if it takes all year.

This applies to everything I want to buy, even travel stuff. I’d rather wait and go across the border and save a good 30% or more, than buy it now and not really have an immediate use for it.

USA versus Canada: Taxes and Currency Exchange

We’ve been flirting around par (above and under) recently, and while I understand that they cannot put a fixed retail price based on a hope that the CAD and USD will be about the same (seeing as the numbers have been fluctuating since 2000), 30% is really quite a price gouge, especially since I can just wait and cross the border to buy it.

Not to mention the fact that Ontario charges a very unfriendly 13% sales tax, compared to the 8.25% in Texas, or 4% in New York, including this little gem:

On September 1, 2007, New York State eliminated sales tax on all clothing and shoes if the single item is priced under $110.

Wuh-WHAT!?

I know where I’ll be shopping from now on.

All this means for me, is that I will not be shopping as much, reminding myself that there is a 30% premium on U.S.-owned stores, and if I don’t need it right this instant, I can wait.

Thank you J. Crew, for your 30% price hike for Canadians. You’ve saved my wallet!

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Tags: 30% Hike, Border Shopping, Canada, Clothes, Currency, Exchange Rate, Limiting my purchases, Shopping, Stop Shopping, USA, Wardrobe, What I am not buying

About the Author

Just a girl trying to find a balance between being a Shopaholic and a Saver. I cleared $60,000 in 18 months earning $65,000 gross/year. Now I am self-employed, and you can read more about my story here, or visit my other blog: The Everyday Minimalist.

http://twitter.com/AmericanVIPShop AmericanVIPShoppers

If you want to purchase anything from the USA, use http://www.americanvipshoppers.com to help you with all your personal shopping needs.
Karie

I just came back from Rochester, NY for a sports tournament. Lots of people went shopping big time. We went to Target and a sporting goods store. We got good deals but I think we totally over bought and most of the things we didn’t need. Some things were really cute and some food like cookies and cream pop tarts and other things can’t be found in Canada. I feel pressure to buy stuff because I don’t know when I’ll be coming back. I would prefer to buy off season or on sale in Canada a little at a time and I think the prices are comparable. Second hand is great. If people eat in a restaurant or sleep in hotels – they are using “used” bedding and cutlery so what’s the big deal buying second hand? Just wash it. I do have to say some people wash their stuff in heavily perfumed washing detergent like Gain and I cannot get that perfume smell out. Tried washing it three times and put it outside in the cold over night but perfume smell won’t go away. That’s a bit of a bummer when buying used!!
Karie

I just came back from Rochester, NY for a sports tournament. Lots of people went shopping big time. We went to Target and a sporting goods store. We got good deals but I think we totally over bought and most of the things we didn’t need. Some things were really cute and some food like cookies and cream pop tarts and other things can’t be found in Canada. I feel pressure to buy stuff because I don’t know when I’ll be coming back. I would prefer to buy off season or on sale in Canada a little at a time and I think the prices are comparable. Second hand is great. If people eat in a restaurant or sleep in hotels – they are using “used” bedding and cutlery so what’s the big deal buying second hand? Just wash it. I do have to say some people wash their stuff in heavily perfumed washing detergent like Gain and I cannot get that perfume smell out. Tried washing it three times and put it outside in the cold over night but perfume smell won’t go away. That’s a bit of a bummer when buying used!!
Karie

I just came back from Rochester, NY for a sports tournament. Lots of people went shopping big time. We went to Target and a sporting goods store. We got good deals but I think we totally over bought and most of the things we didn’t need. Some things were really cute and some food like cookies and cream pop tarts and other things can’t be found in Canada. I feel pressure to buy stuff because I don’t know when I’ll be coming back. I would prefer to buy off season or on sale in Canada a little at a time and I think the prices are comparable. Second hand is great. If people eat in a restaurant or sleep in hotels – they are using “used” bedding and cutlery so what’s the big deal buying second hand? Just wash it. I do have to say some people wash their stuff in heavily perfumed washing detergent like Gain and I cannot get that perfume smell out. Tried washing it three times and put it outside in the cold over night but perfume smell won’t go away. That’s a bit of a bummer when buying used!!
http://www.junkboattravels.blogspot.com/ Jackie

I totally agree with you and only buy my clothes in the States. My last shopping spree was in October in Washington PA where there is NO sales tax.
I just wait until we plan a mini vacation and then shop. Next time will be March in Hilton Head.
And I agree we really don’t need all this stuff.
http://twitter.com/prairieecothrif Miss T

I actually find that even with shipping things are often cheaper online and from the US. We shop a fair bit online and still save. I guess it really depends on what you are shopping for and where you are buying it from.
http://twitter.com/IAmDebtProject AmericanDebtProject

If you come down to the US to shop, forget New York and come straight to New Jersey! There’s no sales tax at all on clothing and shoes (but there is for electronics and jewelry, but still less than NY). When I studied abroad in Spain, I went crazy shopping at Zara and Mango, but I have never once bought anything from them in the States, so expensive here! I just tell myself that someday I’ll go back to Spain and do my shopping there
Phalene

http://www.nyc.gov/html/dof/html/business/business_tax_nys_sales.shtml

tax. Starting on April 1, 2011, clothing and footwear under $55 will be exempt
from the entire sales tax.

http://www.FabulouslyBroke.com FB @ FabulouslyBroke.com

Thanks for the clarification.

I read the article here: http://www.nypost.com/p/news/business/no_sale_for_nyc_tax_WNgDofnwe6q6BM1rzzHzPJ
A 4.5 percent New York City tax remains exempt for purchases below $110.
But as you noted: City sales tax rate is 4.5% but total Sales and Use tax of 8.875 percent.

So anything under $55 will now be exempt from 8.875% taxes

Gets better than better.

http://budgetgradstudent.wordpress.com/ Mary

This is my big thing with shopping: no matter how much it is on sale, I don’t actually need most of what I say I do. So, even though I found a pair of great black boots for a steal, it doesn’t change the fact that they are pretty darned similar to my current pair, which are in decent shape. Also, charging way more for shipping in Canada even though there are stores there? Not cool.

http://www.FabulouslyBroke.com FB @ FabulouslyBroke.com

A great motivator to keep my wallet SHUT.

BIz

We’re not taxed on basic foods only prepped meals. I have no problem with our Canadian tax rate. It curbs copious consumption. I would rather have higher sales tax than an artificially maintained pro-consumption culture.

http://www.FabulouslyBroke.com FB @ FabulouslyBroke.com

True, but if you just want a darn simple sweater and don’t want to buy cheap $10 ones, or pay for $200 ones, and you’ve scoured thrift & consignment stores (sometimes as expensive as retail) where do you go?

http://yuppieinthecity.blogspot.com/ My money, my life

When J Crew first came to Canada, there was quite the outrage because in addition to the 30% price difference, they continued to charge Canadian shoppers who shopped online a substantial “duty”, even though they had stores and presumably storage locations in Canada that they can ship items from, so that the items never cross the boarder. J Crew has since eliminated this duty fee in response, but to date I think the prices are still much higher. Retailers often offer explanations of higher cost of doing business in Canada as the reason for this common price difference, but to be honest I don’t buy it. I think they are charging the price difference because they can… which is fine, but as a consumer I can also speak with my dollar, more specfiically, by not spending them. So I’m with you on this one, I will not buy J Crew stuff unless I am in the states.

http://www.FabulouslyBroke.com FB @ FabulouslyBroke.com

Exactly.

I can’t imagine paying $21 over just for some duties or fees. Aren’t they a PERCENTAGE of the final price? I feel like even at 10% duties/fees it shouldn’t be more than $5.80, or even 20% is $11.60!!!

Not $21.

http://jeweliette23.com/ Sunny

In NJ, I believe that clothes, shoes, and handbags are tax free. (I’m from NJ.) I can sometimes get away with shipping online orders to my parent’s house to avoid paying tax, as long as the company doesn’t have a presence in NJ.

http://jeweliette23.com/ Sunny

Oh and not to enable your shopping, but I’d be happy to be your U.S. contact if you ever want to make a big online order and want to ship it to me for re-shipping to your home in Canada.

http://www.FabulouslyBroke.com FB @ FabulouslyBroke.com

Thank you I really appreciate that!!!

But you’re enabling me.. because now I’m eying that sweater.. lol!

http://www.FabulouslyBroke.com FB @ FabulouslyBroke.com

That’s awesome.

http://add-vodka.com/ Daisy

I hate how expensive things are here compared to in the states, but I live close to the border so I’m able to go over every once in awhile if there’s something I really want to save money on!

http://www.FabulouslyBroke.com FB @ FabulouslyBroke.com

Lucky. I’ll just hold off.

http://flutyocarina.net Stephanie

I don’t really understand the price hike for Canadians. However, as far as I know, it is not uncommon for there to be no taxes on food and clothing that is underneath a certain price in the US. Those items are deemed to be “necessities” and the government shouldn’t make it harder to buy necessities.

http://www.FabulouslyBroke.com FB @ FabulouslyBroke.com

Well food has no tax if it’s fruits, veggies, meat.. but if it’s frozen meals then there’s a tax.

http://flutyocarina.net Stephanie

I don’t really understand the price hike for Canadians. However, as far as I know, it is not uncommon for there to be no taxes on food and clothing that is underneath a certain price in the US. Those items are deemed to be “necessities” and the government shouldn’t make it harder to buy necessities.

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Shopping is cheaper in the U.S.: An excellent way for me to limit my shopping urges

I will only buy Canada-only products or second hand items

I am patient, and frankly this stuff is unnecessary

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