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CDN dollar vs US

almost there - ouch

     
8:51 pm on Sep 20, 2007 (gmt 0)

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Any Canadian adsense publishers here? Looks like for the first time we will be loosing money in October. Canadian dollar is almost even with the US dollar.

Ouch....

9:17 pm on Sept 20, 2007 (gmt 0)

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lose lose for you guys... less adsense income... adwords now cost more
11:37 pm on Sept 20, 2007 (gmt 0)

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lose lose for you guys... less adsense income... adwords now cost more

less adsense, yes

Adwords is in US dollars - if Canadian dollar is more than US, how is that a loss for us? I think you got it backwords.

1:42 am on Sept 21, 2007 (gmt 0)

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We receive less from AdSense in Canadian dollars; but Adwords, of course, cost less in Canadian dollars for those who use them.

This ship has been sailing for a long time. It is hard to believe that a Canadian dollar that was only 62 cents against the American dollar in 2002 is now of equal value. Many economists believe that it is perched to go much higher - possibly 1.05 in the fairly short term.

Of course, the increase in the value of the Canadian dollar is just a reflection do the relative strengths of the two economies. The Canadian economy is going full bore - especially in the west.

I believe the Euro also just reached a record high against the USD. In fact, most currencies have also been rising against the USD.

Consequently, declining exchange rates are a problem being faced by most non US publishers.

2:19 am on Sept 21, 2007 (gmt 0)

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It's going to be very interesting. As a Canadian publisher with a ecommerce business, like many I have been holding the line on prices for the American market because it was the biggest customer for me. With the run up on the Canadian dollar I'm finding I'm going to have to jump my prices up, ande I imagine a large number of others are very close to making the same choice.... US inflation here we come....

Lovejoy

4:30 am on Sept 21, 2007 (gmt 0)

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This year the exchange rate has gone from around .85 to 1 even. This makes me glad that we decided on a policy of only taking payment in CAD funds this year, otherwise I'd be looking at a nearly 15% loss by the end of our summer season. We still listed USD prices (and other currencies) but noted that they were subject to market fluctuation -- with the Canadian dollar price being the real cost.

The importance of the CAD$ price decision was illustrated this week when we had an elderly gentleman who insisted that he had to pay us with a USD cashier's cheque. In the week it took to reach us by snail mail, he ended up owing us $274USD more because the rates had changed. I wasn't about to absorb the loss, and luckily he was able to understand what had happened.

We're headed on a road trip to Utah, never been a better time to go! Today $50USD cost me $50.90CAD. Diesel is something like $.75/L in many places down there instead of $1.01/L, food is inexpensive as well.

I guess this is a little off the posted 'Adsense Loss' focus, oh well. Just glad to see the US dollar plummeting... Maybe this is the start of the Big Crash? That'd be just fine.

6:37 am on Sept 21, 2007 (gmt 0)

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something similar with the aussie dollar. in 2002, it was almost half of the 85 cents USD = 1 AUD that it is today i.e. (i think around 45 cents USD = 1 AUD) . the weak usd was always going to hurt, but this was long in coming. i think it will only get weaker.
2:01 pm on Sept 21, 2007 (gmt 0)

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If you think the US/CAD exchange rate is bad, try looking at the US/GBP rate. It's enough to make you cry.

the weak usd was always going to hurt, but this was long in coming. i think it will only get weaker.

Yep. I got really depressed when I heard a US economist earlier this week forecasting the US$ would likely lose another 50% of its value before it turned around. Not good for non-US adsense publishers. :(

2:10 pm on Sept 21, 2007 (gmt 0)

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And the money I have sitting in a USD account will stay there...our stupid dollar just kept going up and up...every day I "lost" more and more if I were transfer it to CAD.

hehe...I should transfter more into it now, make a few bucks when the USD goes back up!

2:52 pm on Sept 21, 2007 (gmt 0)

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If you think the US/CAD exchange rate is bad, try looking at the US/GBP rate. It's enough to make you cry.

Especially if you're an American with a kid who's attending university in the UK.

Still, there's a bright side to the falling dollar if you don't depend on a single currency for your earnings. I earn quite a bit of affiliate income in euros, and a 20-euro hotel commission is now worth US $28, or several dollars more than it was worth in the fairly recent past.

7:38 pm on Sept 23, 2007 (gmt 0)

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hehe...I should transfter more into it now, make a few bucks when the USD goes back up!

Yeah, if you are willing to wait for the US budget to be balanced and manufacturing jobs to start flowing from China and Mexico back to the US. That should happen within 5 to 10 years after peace and harmony break out across the Middle East. Which might give you a solid 1% return per year!

Sorry if my sarcasm is caustic - I am not bullish on the US economy for the next decade. There are still many companies in the US worth owning, but I have little optimism for the currency.

10:12 pm on Sept 23, 2007 (gmt 0)

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I just checked, the loonie is now worth 1.00093 USD. Monday should be interesting when the North American markets reopen.
11:08 pm on Sept 25, 2007 (gmt 0)

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Any Canadian saying that they shop in the U.S for lower prices is really not comparing apples to apples, and their comparrison is a little deceiving.

I am just back from 3 weeks in Canada, northern Ontario town of 10,000 in a rural area. I live in a town of 10,000 in rural U.S. This is apples to apples.

Products are sold in Canada in metric measures, so I have converted all to the nearest rounded US eqivalent.

50 pound bag of potatoes $9.99 CAD - $.59 pound US
(50 pound bags not even sold here)
50 pound bag of apples $7.50 CAD - $1.29 pound US
(50 pound bags not even sold here)

4 Qt heaped baskets of pears, peaches, nectarines, prisine, firm, not bruised, no fruit flies $2.99-3.99 CAD. Same fruit in US, bruised, rotting, fruit flies hovering in our local store TODAY $1.29 a pound US. These bruised, rotting fruits were $1.49 four hours north in another town of 9,000 population, yesterday, and were $1.49 a pound in this town, only a few days before I went on vacation. We bought and ate plenty while we were there. They were sweet and fabulous, unlike the tasteless, mushy garbage they sell here.

Hamburger $1.59 a pound CAD - $3.29 pound US
Tomatoes - $.59 a pound CAD - $1.48 to $2.29 pound US
Milk $2.99 gallon CAD - Milk gallon $4.29 US
64ct Pampers Diapers $19.99 CAD - $19.99 US
'Mega Blocks' (toys)Big Bag $19.97 CAD - $19.97 US

Four Star hotel, two room suites, with breakfast some with jacuzzi in suite as well, indoor pool, spa and fitness room, $125-$160 CAD in numerous Ontario towns and major cities. I actually paid $139CAD per night for a modern, very clean, huge two room suite, for three adults and a baby, with two person jacuzzi in room, KING bed, and free breakfast for ten days in the town we stayed in the longest.

Same price here, smaller suite, no jacuzzi EVER, maybe a KING bed most likely two QUEENS, in MN, MI, WI, IL, OH, IN, TN, MS towns and cities we stayed in along the way up and back, or within two months before this vacation.

Name Brand Blue Jeans with fancy trims, Size 7, $15.99-$24.99 CAD. I( bought six pairs. Brands not sold here, but equalvalent jeans, with no trims, here are going $19.99 - $24.99.

Major Difference In Real Estate

3 or 4 Multi-family houses, middle class neighborhood in town full of tidy homes owned by working class residents, with 3 to 4 long term renters in each building, earning $1000 to $1200mo in rental income, priced at only $15,000 to $30,000 CAD. Same price here gets a vacant single family home in a run down, crime ridden area of town, boarding the 'projects'.
Houses there are selling like hot cakes. Here they sit on the market for over a year at minimum, and streets are lined with houses for sale. Here, no jobs. There, many businesses were hiring.

A dozen quality Tim Hortons donuts $5.05 CAD - Not available in this US region but local grocery charges $6.95 for generic brand. They have two 24 hour Tim Hortons, we don't have any donuts shops, 24 hour or other wise, and in fact no 24 hours restaurants at all.

Vehicles: This was a HUGE difference. I've converted from kilometers to miles.

Family car, used models, various makes $10,000 CAD value in excellent condition with 30,000 to 60,000 miles gets same exact make, model and year car here, same $10,000 price, only the car has 90,000 to 150,000 miles on it, right here in this town, TODAY.
Used vehicles here for $10,000 with anything less than 60,000 miles on them are like a needle in a hay stack. The car lot there was FULL of them.

Water and sewer bill, on city services, for the family of 7 I visited, living in a huge single family dwelling runs them $45 for THREE MONTHS. I pay that for ONE MONTH for a family of four, when I am frugal.

This was not always so. I lived near that town twenty years ago. There has been a complete reversal of everything in that town and the entire area for that matter. Houses are all remodeled, huge selection of quality products, prices identical or cheaper than here, with the exception of gasoline.

I paid $.99 a liter there, and am paying equivalent $.78 a liter here.

Since I do not smoke nor drink, the much higher cost of 'sin' products, taxed heavily in Canada, has no effect on my household, at all.

Their community center has an ice rink with minor league hockey team, indoor pool with two water slides, jacuzzi, sauna, and fitness equipment. Ours has an indoor pool and fitness equipment with no ice rink, no minor league sports team, no water slides, no jacuzzi and no sauna.

Bottom line is that family earns the same amount as we do, and they are MUCH better off, have more disposable income, more in their savings, and FREE HEALTH CARE.

They deserve a strong dollar, they have earned it.

1:07 am on Sept 26, 2007 (gmt 0)

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janethuggard - very nice post, I enjoyed reading it. You sure have done your research.

A dozen quality Tim Hortons donuts $5.05 CAD

Well, thank you. I have seen Tim's starting to roll out in the US - can't get their donuts there?

Not everything you buy in the states is cheaper (as you've mentioned), well, maybe for books and cars. The thing about shopping in the states is more of a "different" stuff, things we can't get here, different clothing, shoes, jeans, that kind of stuff. We'll be driving to Ohio in 2 weeks and we plan on making a stop in Pennsylvania (yep, no exchange, no taxes). What will we buy? Who knows (shoes maybe).

4:49 am on Sept 26, 2007 (gmt 0)

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janethuggard,

did you know that Tim Hortons is from Cochrane (Northern Ontario), the home of Chimo the polar bear? What a lovely place. I find all the Northern Ontario cities wonderful, in fact.

5:06 am on Sept 26, 2007 (gmt 0)

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Yeah, if you are willing to wait for the US budget to be balanced and manufacturing jobs to start flowing from China and Mexico back to the US. That should happen within 5 to 10 years after peace and harmony break out across the Middle East. Which might give you a solid 1% return per year!

Sorry if my sarcasm is caustic - I am not bullish on the US economy for the next decade. There are still many companies in the US worth owning, but I have little optimism for the currency.

On the bright side, it will be a GREAT TIME for the US to pay off the INTERNATIONAL BANKERS holding the US Debt Notes while the USD is cheap!

5:27 am on Sept 26, 2007 (gmt 0)

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Bottom line is that family earns the same amount as we do, and they are MUCH better off, have more disposable income, more in their savings, and FREE HEALTH CARE.

Maybe I need to move up to Canada, eh?

2:37 pm on Sept 26, 2007 (gmt 0)

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"3 or 4 Multi-family houses, middle class neighborhood in town full of tidy homes owned by working class residents, with 3 to 4 long term renters in each building, earning $1000 to $1200mo in rental income, priced at only $15,000 to $30,000 CAD.

This is completely false. I'd love to know where you saw these prices. Please let me know as I'd be very itnerested in purchasing a home there.

Also concerning vechiles...There was actually a class action lawsuit filed in Canada yesterday for a alleged conspired to fix car prices 25 per cent to 35 per cent higher in Canada than in the United States.
In a response Porche said it would take 10% off the canadian price of its cars...

3:09 pm on Sept 26, 2007 (gmt 0)

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What the....$30,000 dollar homes? Are they floating? Because you can't even get a lot for that price. And I'm in MB, one of the cheaper provinces to live, and I'm in a small town of only ~4000people. If I could find an empty lot for that price I'd buy it in a heartbeat.
3:36 pm on Sept 26, 2007 (gmt 0)

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please take no offense janethuggard

those numbers don't jive in most of the places I've lived in Canada, plus things like food and gas and taxes in generally have a tendency to fluctuate a fair bit by province as provincial govs do different things.

30k for a house, I don't care where it is, I'll take 3

>> ame price here gets a vacant single family home in a run down, crime ridden area of town, boarding the 'projects'.

yup, same up here, if you're lucky

add in taxes and things change too, there are good and bad things about everywhere

</OT>

be all this as it may, it is all fairly OT for this thread, yes, AdSense publishers in Canada are having a tough time with the exchange

but it was a sweet deal while it lasted, especially when USD was at 1.60 ;)

3:40 pm on Sept 26, 2007 (gmt 0)

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>>>30k for a house, I don't care where it is, I'll take 3<<<

Is that a single-wide or a double-wide trailer?

:-p

7:17 pm on Sept 26, 2007 (gmt 0)

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I know this is getting off topic, but, 30k for a house (maybe not), but look at real estate in atlantic provinces (50k will get you a nice starter house, not a trailer).
5:32 pm on Sept 27, 2007 (gmt 0)

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System: The following message was spliced on to this thread from: http://www.webmasterworld.com/google_adsense/3462933.htm [webmasterworld.com] by martinibuster - 9:47 am on Sep. 27, 2007 (utc -8)


I noticed that the payment for August earnings has been posted to my AdSense account, with a payment date of September 26, 2007.

For the first time, the amount of the payment in local currency (Canadian dollars) is LESS than the US dollar earnings, as the exchange rate used was 0.995 Canadian dollars for every $1 USD.

As "Payments are converted from United States dollars at the prevailing rate at time of payment processing", Google benefited by several percentage points, as the exchange rate for most of August 2007, when the campaigns were running, were between 1.05 and 1.08, see:

[finance.yahoo.com...]

It would be nice if Google would allow EFTs in US dollars to Canada, for those of us who have both Canadian dollar and US dollar bank accounts.

7:19 pm on Sept 27, 2007 (gmt 0)

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GeorgeK, you can always go back to getting a cheque, that's in USD, but do you really think things will ever get back to the way they were?
8:56 pm on Sept 27, 2007 (gmt 0)

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I wouldn't want to wait for weeks for a cheque.

I don't mind the strong Canadian dollar, personally, as no country ever became rich by devaluing its currency. But, since the spread that Google uses to calculate the local payout can be 1% (or more) from the wholesale mid-market FX rates between banks, I'd rather keep that 1% for myself, and choose when/how I convert it back to Canadian dollars. Often, I have offsetting purchases in US dollars, so it's handy to keep the US funds unconverted.

3:28 am on Oct 1, 2007 (gmt 0)

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Qt heaped baskets of pears, peaches, nectarines, prisine, firm, not bruised, no fruit flies $2.99-3.99 CAD. Same fruit in US, bruised, rotting, fruit flies hovering in our local store TODAY $1.29 a pound US.

Where the heck in the US do you buy your food?! Glad I don't shop there.

7:09 am on Oct 1, 2007 (gmt 0)

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Well, it works to ways, folks.

A Canadian manufacturer we have used is now costing so much we will almost assuredly move back stateside. Began the relationship when the CAD was about $0.75 on the USD. The current increase in manufacturing costs will erode our margins far too much.

Interesting times.

Sure would be nice if China would let their currency float along with the rest of ours.

2:14 pm on Oct 1, 2007 (gmt 0)

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Okay so now that we all have currency rates down why not try a demo trading account.... lol... I so badly want to drop a link in here....
6:44 pm on Oct 1, 2007 (gmt 0)

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In Europe its much much much worse....

If i would have earned 1000 USD 4 years ago, i would have got 1400 EURO.

Now 1000 USD are only 700 USD

10:07 am on Oct 2, 2007 (gmt 0)

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In Europe its much much much worse....

And in the UK, terrible. When I started Adsense the rate was around $1=0.68. Now it's $1=0.48. Bah humbug. :(

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