BRP Stops Cross-Border Shoppers

At least one snowmobile dealer in the US has been ordered by Bombardier Recreational Products Inc. (BRP), makers of Ski-Doo, to stop selling to Canadians who cross the border in search of favorably-priced machines.

The story made big news in Canada and Ron Thompson, who owns Gateway Sports in Grand Forks, ND, says BRP is not happy with the publicity.

“What started out as a little conversation with a paper in Winnipeg has kind of blown out of proportion,” Thompson told Snowmobile.com. “I didn’t know it would be in every paper in Canada. They’re not too pleased with my name being blasted across Canada.

“It’s okay. to turn down all kinds of business, but when you get a little bit mad you’re not supposed to voice your opinion.”

When asked if he was worried about BRP pulling its products from his dealership, Thompson said wouldn’t put anything past the Montreal-based company.“I’m not saying they’re a big bully, but they’ve already kind of slapped my hands on this deal.

Canadian customers were flocking to American dealerships because they could potentially save thousands of dollars on a snowmobile due to the exchange rate. To close the gap, Thompson says, BRP told him to assess a surcharge to Canadian customers before eventually telling him to stop selling to Canadians altogether.

Lawrence Drialich, who runs LAD Enterprises in East Selkirk, Man. (northeast of Winnipeg and not far across the border from North Dakota), is happy to see BRP lay down the law on Gateway Sports and any other American dealer selling to Canadians.

“I’m in favor of whatever Bombardier can do to them,” Drialich told Snowmobile.com.

Drialich, who has been a dealer for more than 30 years, says when the Canadian dollar was weaker, American customers often tried to buy a sled from his and other Canadian dealerships.

“We were involved in the racing circuit for many, many years and I had countless opportunities to sell (to Americans), but I didn’t because we had an agreement not to cross-border sell,” he says.Drialich, however, doesn’t place all the blame on dealerships such as Gateway Sports.

“It’s partially Bombardier’s fault. There should never be that big of a price difference,” says Drialich. “The same material that goes into an American sled goes into a Canadian sled. Why the big price difference? That’s kind of Bombardier’s own problem too.”

Both Thompson and Drialich think BRP will do something to close the price gap.

“They’re going to do something for the Canadian customer to save face,” says Thompson.

“They have no choice or they’re going to lose dealers,” says Drialich.