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Originally Posted by Baraka_Guru
Okay, I work for a small book publisher, so I know a bit about how this works (or doesn't...) Regardless of how the Canadian dollar fluctuates, the cost of doing business stays the same (actually, it usually goes up). For example, even though the dollar opened at $0.94 this morning, it doesn't change the fact that the cost of paper is still high (especially now that printers are switching to 100% post-consumer products as a default stock), as is distribution (fuel prices, warehousing, compensating sales reps and marketing admin.).
There was a report released by a major bank (RBC, I think) that revealed how despite the strong dollar, the purchasing power of Canadians is staying the same. Prices are not going down. Economics is a complex and interconnected thing. So, yeah, gripe about books (and greeting cards) all you want, but bear in mind that running a publishing-based business isn't cheap. Books and cards take a lot of paper to make and they're heavy to ship.
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That does not negate the point.
No, running a publishing-based business is not cheap.
However, depending on where the business is located and where the item published is sourced from it did get cheaper or more expensive to run based on a change in the currency rates.
If you were selling books in Canada that you bought in the United States (let's assume for argument sake that the book is completely printed in the U.S. and made completely from U.S. ram materials) then if the Canadian dollar is worth $0.93USD today but it was worth $0.90 two months ago the Candian book seller should be able to by more U.S. made books today then it was able to two months ago.
Let's look at in the other way around if the Canadian Dollar went down relative to the U.S. dollar would it not be more expensive for the Canadian Book Seller, importing from the U.S. to do business? It would. So why should the argument work the other way around as well. It does.
This does not change the fact, as you stated, that the publishing business is not chaep to run.
All this, of course, is much more clear in the Oil markets.
Oil, around the world is traded in USD.
Gaz Stations, Fuel Stations...whatever you want to call them...change prices everyday and throughout the day. They are no stranger to changing prices.
If the Oil price stays the same and if the Canadian dollar gains on the U.S. dollar then the Gaz Stations can now buy more gaz for their dollar.
If the price at the pump does not go down you would have to ask yourself why.