Dealer margins could erode as dollar drops

SPECIAL REPORT — With the decline of the value of the Canadian dollar compared to U.S. currency, many dealers are likely seeing price increases on products manufactured in the United States or imported from anywhere in the world.

Even for dealers doing their own direct importing, increases are still going to occur when paying for those shipments in U.S. dollars, says Bill Wilson, retail advisor for the North American Retail Hardware Association Canada. This will include products landed at port of entry, as ocean freight is paid in American currency. You will also see increases in costs from distributors on imported product.