Unappealing Canadian Costs

The local Canadian online retail business, Betty Be Good, now aims to locate to Blaine, U.S instead of opening a boutique within Canadian borders. Credits: http://www.vancitybuzz.com/2013/09/betty-be-good-boutique-expands-to-store-in-u-s/

It really is not a surprise when a Canadian entrepreneur, Suzanne Smith, who owns the e-commerce Betty Be Good which sells retail clothing online, is now deciding to have a boutique shop in Blaine, Washington in the United States instead of Vancouver, Canada, where she is currently residing.

As an entrepreneur starting out a business, he or she must think of costs and try to minimize it for greater profit. Unfortunately, Canada just happens to be less attractive to business owners when they must consider the cost of rent, generally 2.5 times more than the rent of our neighbor state of Washington, U.S. By selling her products in the U.S, the savings would allow her to reduce prices and thus permit higher sales volumes.

Smith is amongst many other entrepreneurs who are seeking to profit from the enormous amount of Canadians who travel down the border to purchase cheap groceries and gas. Her parents closed down multiple Subway restaurants in Surrey to the U.S and is now experiencing incredible returns.

This is simply a trend that is affecting Canadians today. Canadians enjoy the cheaper goods available in the U.S market, while this action can be  threatening to our local businesses while they cope with the high costs of operating in Canadian soil. As Canadian citizens, we hope that our economy can prosper and grow, but if businesses cannot survive in this profit discouraging environment, the result is likely higher Canadian unemployment in the near future.

Credits: “Vancitybuzz.” Vancity Buzz Vancouver Events News Food Lifestyle and More. N.p., n.d. Web. 15 Nov. 2013.

Long lineups at the Peach Arch border. Credits:   “Dec. 27: Traffic Light, except at the Borders | The Province.” The Province Dec 27 Traffic Light except at Theborders Comments. N.p., n.d. Web. 15 Nov. 2013.


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