We have been buying supplies from a price list originally based on a Canadian Dollar of around 85 cents. Yet we pay an added premium of 5.1% over those prices while our dollar currently sits at 98.4 cents (I know, 5.1% extra on a dollar that actually costs only 1.6% more has even me puzzled).
We've had new price lists issued over the past few months and yet the U.S. dollar premium still remains.
I have to wonder how they calculate their landed cost of goods if it's not based on the dollar they actually paid with.
This makes the purpose of the long-time practice of having a surcharge suspect.
Today, the CDN dollar is over 98.4 cents and the surcharge is 5.1%.
Using these numbers, when (if) our dollar hits over $1.01, we should see a Canadian Dollar rebate of 5%.
Can't wait to see what happens...