Tips
For Success
Marketing Strategies
Understanding
the people you want to do business with is the first step to developing
a successful marketing plan. There are other factors that will affect
your marketing strategies as you cross the border. Unique factors
in packaging and pricing are important to consider.
Pricing
Always
include shipping and handling in the price quotations for the Canadian
customer. In the U.S. we are generally more tolerant of added costs
such as shipping and handling, even if we were not aware of it when
we make our initial purchasing decisions. Statements such "plus shipping
and handling" without detailing the costs of shipping and handling
can create problems with potential Canadian customers.
Canada's taxation system
is different than in the U.S., and some tax laws are unique to certain
regions of Canada. Check tax laws before determining your pricing
strategies so unforeseen taxes do not take away your profits.
Make sure that whatever
prices you are dealing with are clearly marked in either Canadian
and U.S. dollars. If you are not clear, the assumption will be that
a stated price is in Canadian dollars. That can mean a difference
of 20 to 30 percent in your revenue.
While most Canadian coins
look similar to U.S. coins, the value of currency is different. If
you are comparing your prices with other products sold in Canada,
you must calculate the difference and take into consideration the
currency exchange rate.
How a product's price can
change in the Canadian market.
|
U.S. price
|
$25.00
|
|
3% duty (varies
with product)
|
.75
|
|
GST Tax (7%)
|
1.75
|
|
Canadian $5.00
shipping fee
|
4.10
|
|
|
=========
|
|
Final price in
U.S. dollars
|
$31.60
|
Packaging
Depending
on your product, the brand name you use can have a positive or negative
affect on buying decisions. Include brand name influence in your marketing
research. The same "brand" or image which works in U.S. markets may
not be perceived as positive or hold similar equity in Canadian markets.
Canada uses the metric
system. Make sure that listed weights and measurements for packages
and products are in metric form.
Remember, Canada is officially
bilingual. Include both French and English on product packaging.
Package labeling regulations
are becoming more stringent, even in the U.S. Do not assume that package
labeling laws in Canada are the same as they are at home. Research
the package labeling laws that apply to your product and to the geographical
area of your target market.
Pricing and packaging are
key considerations in your marketing strategies when doing business
in Canada. They are not obstacles but, rather, a part of doing business.
Do your homework. Research is a profitable investment in your marketing
success.
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