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Old 06-23-2009, 06:45 PM   #95
wenchie
Pearl-ExPert
 
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Join Date: Apr 2007
Location: Winnipeg, Manitoba, Canada
Posts: 2,924
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OK, so what can we pull out of this message that SU is sending out?

There's a lot of fluff in there that attempts to speak to the cost of sales and doing business in Canada.

1. The company works hard to establish fair and valued pricing, and in addition to the exchange rate, there are other business costs, including Revenue Canada corporate income taxes . . . .

This essentially implies that Corporate taxes have risen in the past year. Revenue Canada is not in the habit of raising corporate taxes from one year to the next. In fact, it's been several years since the last increase.

At any rate, Corporate taxes are a cost of doing business and in my view considered an overhead expense and not one that aught to be passed on to the consumer. And if it was, I sure wouldn't be telling my customers that's what I'm doing.

2. pricing and cost structure regulations for affiliated entities doing business across borders, that need to be and are considered in pricing.

What the heck does that mean REALLY? blah blah smoke blah blah mirrors. NAFTA here . . . hello!! No duties . . . just GST, which by the way we also pay again when WE purchase their product. Neat trick huh? Sounds like double dipping to me.


3. The company also must take into account sales volume in pricing its products to ensure it will be a value to customers during these initial years but still keep the company viable for the long term.

So, this means that by raising the dollar value we're to believe we're receiving greater value? That's the dumbest thing I've ever heard! Doesn't quite compute. By the way, isn't "volume" pricing supposed to be cheaper? And, what's this "initial years" thing? It's not like SU is brand new and struggling to stay afloat. Haven't they been around for 20 years or more? If that's not viable, then I don't know what is.


4. The prices appropriately reflect the value of the products, including our exclusive artwork and designs, the quality of our products. Customers buying from our demonstrators get person-to-person training and long-term customer support-you need only call your demonstrator to get stamping or scrapbooking advice and ideas. Customers across Canada agree that our stamps are a good value, as shown by the rapid and steady growth of our sales
.

blah blah . . . yadda yadda . . . useless rhetoric. Nothing different than the US customers also have access to. Also, let's not forget that the demonstrators are not on the payroll here. They earn income based on sales. If they don't sell . . . they don't make money. However, the message implies that this is a cost of doing business that in turn gets passed on to us? hmmmm . . . let's kick the rented mule because I sure wouldn't kick my own.


5. As you are aware, the catalog is released on July 1. We are unsure as to what you are referring to when you say that the catalog is secret until that time. Demonstrators are now receiving the new catalog in the mail. They are free to show this to their customers if they would like.

Whatever . . . . it's a timing issue now. Of course the catalog is secret. Only because it's nearing release does their argument hold water.


6. Thank you again for your e-mail. Please let us know if we can be of further assistance.

ummmm perhaps they'd like to answer the REAL question about why CDN prices went up but not US? Notice how they completely ignored that? I can't imagine that the cost of doing business in Canada has risen but remained the same in the US?


7. Sincerely,

They sincerely want to think we're stupid idiots who can't think for ourselves or are not smart enough to stop and say "Hey! What the heck is happening here?" EH?!
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