Dealing with the falling Canadian dollar

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One of the challenges that we have in Canada is that we are very much an export oriented country.  Whether it is automobile, other manufacturing, farming, lumber or oil we are really dependent on the exports that our country produces for other countries around the world.  This is what is really exciting about a falling Canadian dollar is the buying power that foreigners have by purchasing from Canadian companies.  Where it isn’t great, is if you’re buying from a country that has a huge advantage over the Canadian dollar; in this case the USA.

Whether you’re a Salesforce or a SugarCRM customer of ours, you’re probably feeling the pinch.  But this isn’t just an issue to do with CRM software but anything we are importing from the United States in a general sense.  Over the last decade we have seen a lot of Canadian companies purchase online services from companies like Google, Dropbox, Box.com, Amazon AWS, Microsoft and many others.  All of those service based companies charge primarily in USD other than Microsoft.  Essentially we are seeing that the cost of US goods increases almost every day and even more so since the recent Bank of Canada rate cut last week.

What the future holds

Most economists are predicting that the Canadian dollar will fall to about $0.70 before the end of the year.  That isn’t the cost of purchasing Canadian dollars as that is typically another 5 pennies or so on top of that rate.  If you’re currently using software & services from American vendors it’s important to budget accordingly and not only account for a falling dollar but also plan for any price increases those vendors may be planning.

Buy Canadian

Although I’m not promoting a notion of “Buy Canadian” like the theme of “Buy American” in the United States, I am suggesting that you look locally to a company like Eligeo CRM or other Canadian consulting firms.  Although we can’t help on the cost of the software you’re purchasing, we can help in the sense we are billing in Canadian dollars for our services.  Plus, who doesn’t love working with other Canadians?

The other option is to look at Canadian CRM providers and there are a number of them including ourselves.  On the mid size to enterprise level companies like Microsoft do offer their CRM products in Canadian dollars as well.

America can Buy Canadian and save

Recently we were sending a quote to a customer in the states for a fairly large project.  When we quote to our American customers we are quoting in Canadian dollars and show you the conversion rate.  In the past week the Canadian dollar fell from 0.22 to .29 in a matter of a week which meant we were offering them discounts without actually doing any discounting.

So if you’re an American customer looking for a deal with a seasoned CRM expert, we’re ready to go up here in Canada.


 

Times are changing up in Canada where things were really good since 2009 and we were drunk with oil riches.  It’s a lot different climate up here now and things have changed so we all need to adapt to that changing environment.

 

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