20% off ... CANADA .. and ??

[gravtation]

Hi, I can't understand how most of us here in Canada are almost jumping and give big thumbs up to special deal like 20% off on lego. FOR SURE I'M not...

 

-Here in Quebec we pay 15% tx .. so to me a 20% off .. mean only 5% off at the end .. I don't see anything to celebrate ... may I know if i'm the only one who think this way and that we deserve better than that ?  When you buy at 20% there's no way you do money on these sets right away.. need to be stashed away for 1 to 3 years  right ? Or you simply do  10 - 20$ quick flip .. or I'm missing something here...  (I've been selling on Ebay since the last 7 years, wasn't lego at first,  and now with all the fees I don't understand how we as Canadian with the high prices we pay are able to keep on going ...)

 

 

In USA, they get 20 - 75% often + they can stack bunch of deals, coupons and other tweak combinations ...

 

Here since last year, most of our "favorites lego providers" seems to have renounce to any coupon, or real hardcore deals...Why ? 

Edited March 13, 2015 by gravtation

[massakassa]

I used to find good deals at WM for 66-75% off, but now even 50% clearance on Lego is getting more rare there. Their new tactic is putting a discount of just 20% on sets just like the other retailers are doing. Not a really good prognosis for the situation in Canada.

[bricketycricket]

This is why I don't bother with non exclusives, for the most part. The numbers in Canada just don't add up for me.

[lobo1969]

I'm not a quick flipper, not enough money for the time and effort. I'm in for the long haul mostly. But everything else you said I tend to agree though the weak CDN dollar helps when selling (always sell in USD).

 

Retail 'sales' of 20% in Canada will never thrill me but they appeal to the average LEGO buyer who are mostly content to pay regular prices for LEGO in Canada. So I have little hope for bigger discounts and sales from the major retailers. In fact I'm worried about about prices creeping up BECAUSE of the weak CDN dollar.

 

Canadian resellers will never operate on a fair competitive basis with USA based sellers but we can still make decent cash. Just have to be smarter and more diligent about maintaining a long term plan.

[lobo1969]

This is why I don't bother with non exclusives, for the most part. The numbers in Canada just don't add up for me.

I'm the same way unless the 'common' run of the mill sets start approaching 50% off. That is the only way to eek out a decent profit.

[tacsniper]

TRU have already started raising prices due to weak Canadian dollar. For example, some of the $15.99 Star Wars sets are now $19.99 in store.

[gregpj]

I don't do much quick flipping either... 20% yields better than a final 5% off since you don't pay tax on the savings.. Many American buyers also pay tax - not quite as high, but I think a few pay 8%-9% which is high enough. The one that kills me is all those extra stacking credit cards savings and rewards points they have in the US. We have the Air Miles cash now, but I really do use those for flying!!

 

I just don't expect to compete with the US sellers. I managed to flip a few RIs and even a couple Mars Rovers to the US but generally, I expect slower sales to cheap-o Canadian buyers.

 

Toys R US and Walmart have had a virtual monopoly on the toy market in many parts of Canada (and even more so TRU). That's one reason Target was so nice... TRU had some much better deals when Target started moving in. When the writing was on the wall, the sales and clearance deals also disappeared.

 

I've come to learn the Canadian eBay market is fickle.. certain things they'll gladly pay extra for, others not so much. Where I've been doing OK up here is dealing in the more expensive sets. As small time businesses or whatever you operate as, people who buy from you on eBay are going to look at two things:

 

1) Shipping Costs

     - Small parcels are cheaper to send from the US to Canada than Canada to Canada. The larger parcels can become just as expensive.

     - Canada Post charges dimensional pricing very quickly so having the right size box can easily save you good money on shipping.

     - By using PayPal and Expedited shipping, you can cut about 10% off the shipping costs in Canada (and have a great service) - don't believe what Canada Post says are their posted Venture One rates. That is a 5% savings but going through PayPal is another 5% or so which also helps with the fees.

 

2) Import Costs

     - Of course the crappy exchange rate is helpful to any old stock you may have lying around... many of us got a 10-15% bump in value on some sets just by the change in exchange rate.

     - GSP (as much as I hate it for buying) is great for selling within Canada. The brokerage fee charged on top of the taxes are ridiculous and the average buyer doesn't realize you pay taxes on anything being imported over $25 so when they're so front and center, it encourages them to buy in Canada.

  ** Edit - why this matters.. as a business that doesn't do $30k in annual sales, you don't have to charge tax. Canada Post could care less about that and they very rarely forget to collect the tax on delivery. **

 

We also buy a lot (too much) Lego for our own consumption... 20% is acceptable for a lot of them especially since we didn't know any better when we started buying Lego again for our kids.

 

Reselling in Canada isn't for the faint of heart... long term holds is my main play and I sometimes hope for just a little luck.

Edited March 13, 2015 by gregpj

[peenutz]

Speaking of price hikes, superstore in BC (loblaws) has raised their prices on Lego. 12.99 sets are now 14.99. 29.99 sets are now 32.99... Not looking good.

[ChristopherJB]

If you did not buy the MKII crane this time, you are in for a rude awakening. Price hike coming. 20% off recently for 200 pre tax. You know americans have to pay state tax too. Some do and it is around 8-10%. Do the math and you will see that the MKII cost about 275CAD. Imagine if the exchange gets to 70 cents. You will pay up to nearly 300CAD in the states. I bought 15 of these and will happily unload them on ebay for 225-250usd during xmas.

[Sandwraith]

I don't think anyone is particularly excited about %20 off. I think the only exciting thing is that TRU also has the $10 off coupon. If you buy the right sets and whatnot it can add up to %30-%40 off, which isn't bad.

 

Most have already covered some of the other things i was going to say, and i would agree that if you can't get good deals on the smaller sets, just stick to exclusives. You will most likely always get your money back (and then some) if you wait the right amount of time. With these rarely going on sale if at all, there's no real high risk of our US friends undercutting us.

 

With the state of the CAD in comparison to the USD; some sets are actually cheaper here in Canada. I know this has been covered in other threads, but as a recent example: The Helicarrier goes for $350 USD and $400 CAD, making our buy in cheaper at $317 USD or something. Of course i list in USD and sell to the states to make sure i take advantage of this.

[bigreen]

Very agreed on you guy's point on the weak CAD.

 

I do think this is a good thing, in fact, a chance for those Canadian Brickpickers that focus on Exclusives.

[gregpj]

Good point on the older merch being cheaper. Lego has a history of not adjusting their prices once set either so that's good for us.

Also, the US doesn't charge taxes on imported goods until it hits $250 and often doesn't even bother. So if you hit that sweet spot with some mid range sets you can benefit from the exchange even without free shipping.

It's not easy and you won't get rich but it's possible to make a few dollars here and there. :)

[seapotato]

Canada Post increased the postage on parcels and small packets as well (for international anyways). It's getting really hard to eke out a profit now, definitely hard to compete with people in the US.

[Stragus]

Somehow, I'm not excessively worried... With the very weak CAD and fixed Lego prices, we can manage with 30% discounts.

Sets at 30-50% seem to pop up regularly. Even TRU's sales (20% + $10 off $40) have been quite all right. Things will get harder when Lego adjusts their prices to the new exchange rate.

In 2013-2014, we were ordering online in the U.S. and shipping to the border (to a Kinek point). It's really bothersome, but in the worst case, we can do that again...

[fatboycarney]

I don't do much quick flipping either... 20% yields better than a final 5% off since you don't pay tax on the savings.. Many American buyers also pay tax - not quite as high, but I think a few pay 8%-9% which is high enough. The one that kills me is all those extra stacking credit cards savings and rewards points they have in the US. We have the Air Miles cash now, but I really do use those for flying!!

I just don't expect to compete with the US sellers. I managed to flip a few RIs and even a couple Mars Rovers to the US but generally, I expect slower sales to cheap-o Canadian buyers.

Toys R US and Walmart have had a virtual monopoly on the toy market in many parts of Canada (and even more so TRU). That's one reason Target was so nice... TRU had some much better deals when Target started moving in. When the writing was on the wall, the sales and clearance deals also disappeared.

I've come to learn the Canadian eBay market is fickle.. certain things they'll gladly pay extra for, others not so much. Where I've been doing OK up here is dealing in the more expensive sets. As small time businesses or whatever you operate as, people who buy from you on eBay are going to look at two things:

1) Shipping Costs

- Small parcels are cheaper to send from the US to Canada than Canada to Canada. The larger parcels can become just as expensive.

- Canada Post charges dimensional pricing very quickly so having the right size box can easily save you good money on shipping.

- By using PayPal and Expedited shipping, you can cut about 10% off the shipping costs in Canada (and have a great service) - don't believe what Canada Post says are their posted Venture One rates. That is a 5% savings but going through PayPal is another 5% or so which also helps with the fees.

2) Import Costs

- Of course the crappy exchange rate is helpful to any old stock you may have lying around... many of us got a 10-15% bump in value on some sets just by the change in exchange rate.

- GSP (as much as I hate it for buying) is great for selling within Canada. The brokerage fee charged on top of the taxes are ridiculous and the average buyer doesn't realize you pay taxes on anything being imported over $25 so when they're so front and center, it encourages them to buy in Canada.

** Edit - why this matters.. as a business that doesn't do $30k in annual sales, you don't have to charge tax. Canada Post could care less about that and they very rarely forget to collect the tax on delivery. **

We also buy a lot (too much) Lego for our own consumption... 20% is acceptable for a lot of them especially since we didn't know any better when we started buying Lego again for our kids.

Reselling in Canada isn't for the faint of heart... long term holds is my main play and I sometimes hope for just a little luck.

This is a great post. All Canadian Brickpickers should read this! Nice job

[gravtation]

I don't do much quick flipping either... 20% yields better than a final 5% off since you don't pay tax on the savings.. Many American buyers also pay tax - not quite as high, but I think a few pay 8%-9% which is high enough. The one that kills me is all those extra stacking credit cards savings and rewards points they have in the US. We have the Air Miles cash now, but I really do use those for flying!!

 

I just don't expect to compete with the US sellers. I managed to flip a few RIs and even a couple Mars Rovers to the US but generally, I expect slower sales to cheap-o Canadian buyers.

 

Toys R US and Walmart have had a virtual monopoly on the toy market in many parts of Canada (and even more so TRU). That's one reason Target was so nice... TRU had some much better deals when Target started moving in. When the writing was on the wall, the sales and clearance deals also disappeared.

 

I've come to learn the Canadian eBay market is fickle.. certain things they'll gladly pay extra for, others not so much. Where I've been doing OK up here is dealing in the more expensive sets. As small time businesses or whatever you operate as, people who buy from you on eBay are going to look at two things:

 

1) Shipping Costs

     - Small parcels are cheaper to send from the US to Canada than Canada to Canada. The larger parcels can become just as expensive.

     - Canada Post charges dimensional pricing very quickly so having the right size box can easily save you good money on shipping.

     - By using PayPal and Expedited shipping, you can cut about 10% off the shipping costs in Canada (and have a great service) - don't believe what Canada Post says are their posted Venture One rates. That is a 5% savings but going through PayPal is another 5% or so which also helps with the fees.

 

2) Import Costs

     - Of course the crappy exchange rate is helpful to any old stock you may have lying around... many of us got a 10-15% bump in value on some sets just by the change in exchange rate.

     - GSP (as much as I hate it for buying) is great for selling within Canada. The brokerage fee charged on top of the taxes are ridiculous and the average buyer doesn't realize you pay taxes on anything being imported over $25 so when they're so front and center, it encourages them to buy in Canada.

  ** Edit - why this matters.. as a business that doesn't do $30k in annual sales, you don't have to charge tax. Canada Post could care less about that and they very rarely forget to collect the tax on delivery. **

 

We also buy a lot (too much) Lego for our own consumption... 20% is acceptable for a lot of them especially since we didn't know any better when we started buying Lego again for our kids.

 

Reselling in Canada isn't for the faint of heart... long term holds is my main play and I sometimes hope for just a little luck.

Amen .. you are so right .. this is how I build my once collection of another "special thing!" lol .. but you are so right, Since our dollar was at par fo a while  .. I lost all my used to be landmark on how you still can make money out of our situation ! lol

Thanks for the strategic memories ...

Edited March 14, 2015 by gravtation

[Padraig]

And is it normal that two out of three sets are damaged upon delivery? This is the latest from Amazon.ca and the package was fine, so they just sent me a beat up box and only offer a refund, no exchange.

Edit TRU is just as bad!

Edited March 14, 2015 by Padraig