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Thread: The Hockey Guide pricing issue...

  1. #1
    Boogeypop's Avatar
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    Default The Hockey Guide pricing issue...

    Hi Dobber, any of the site admins or anyone already thinking of purchasing the Guide.

    I just wanted to post something on the way the tax is attributed vs. the exchange rate. First I want to point out that I'm not really upset and it doesn't account for many cents in the end but the way you designed the transaction is flawed.

    You charge 9.99 USD for the guide plus another 1.30 USD for taxes in Ontario. However, I then get ding'd for the exchange rate on the 1.30 which should be added post exchange rate conversion. Am I wrong?

    I mean it's only an extra 45 cents but still. What if I were buying everything?
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    Default Re: The Hockey Guide pricing issue...

    It's the same result in any order. Not sure where you got 45 cents from

    9.99 * 1.13 * 1.31 is the same as 9.99 * 1.31 * 1.13

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    Default Re: The Hockey Guide pricing issue...

    I think you're saying the tax amount of 13% in Ontario should not be calculated in U.S. dollars (in a way you are right, but...). The price of the item can be sold in U.S. but the tax amount that is handed to Ontario should be done on the side. $9.99 + 13% tax is $1.30 in tax however, if it's $1.30 U.S. with a 35% exchange rate (probably the rate at the time of purchase), you're looking at an additional 45 cents.

    From another perspective, if you take the $9.99 U.S. price tag, you are looking at a Canadian price tag of $13.49 pre-tax (35% exchange rate). Add the 13% Ontario tax to that amount and your tax amount = $1.75 Canadian (added 45 cents to the initial $1.30).

    As striderz says, no matter what way you look at it, it equals the same amount in the end...
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    Default Re: The Hockey Guide pricing issue...

    Well here is how I come to the 45 cents. I shouldn't be charged an exchange rate on a local tax. If I am paying taxes for being in Ontario, the tax should be applied last and only after it is converted.

    (9.99 * 1.34) + 1.30 not (9.99 + 1.30 ) * 1.34.

    The product while they can charge in USD shouldn't have an exchange rate on the tax.

    That's what I meant.
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    Default Re: The Hockey Guide pricing issue...

    i believe the correct answer is above.

    first you calculate the Canadian price: 9.99 * 1.34 (or whatever the exchange rate is). Then you calculate the tax (*1.13).

    the exchange rate is used to calculate the Canadian price, upon which the tax is applied.

    you appear to want to be changed tax on a price of 9.99 Canadian. But that's not the price. The price is 9.99 USD, which must be converted to the Canadian price before taxes are applied.

    .

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    Default Re: The Hockey Guide pricing issue...

    I hate taxes!!
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    Default Re: The Hockey Guide pricing issue...

    Quote Originally Posted by Boogeypop View Post
    Well here is how I come to the 45 cents. I shouldn't be charged an exchange rate on a local tax. If I am paying taxes for being in Ontario, the tax should be applied last and only after it is converted.

    (9.99 * 1.34) + 1.30 not (9.99 + 1.30 ) * 1.34.

    The product while they can charge in USD shouldn't have an exchange rate on the tax.

    That's what I meant.
    9.99usd = 13.39cad. Converted
    13.39cad x 13%= 15.13
    Tax applied last, and only after it was converted as per above

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    Default Re: The Hockey Guide pricing issue...

    Is dobber.com not a Canadian based site? With all operations being out of Canada? I do not know, I am literally asking

    If that is the case though, would it not be general practice to sell product in candian dollars? Even though i could, I wouldn't sell anything on kijiji with a Euro price tag
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    Default Re: The Hockey Guide pricing issue...

    Dobber is based in Canada. (He wouldn't be applying HST otherwise).

    There is no law dictating choice of currency (although, depending upon the province, there is a law that requires disclosure of currency - but that's another matter.)

    While it is definitely more common for Canadian-based sites to list in Cdn currency, there are a variety of reasons why a business might take another approach. As one example, if the majority of your customers reside in the US, for example.

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