The key to lower price is simply volume. And we don't have it in Canada. We're getting there, but you have to remember Canada's population and economy is commonly compared to that of the state of California. And with the restrictive gun laws and attitudes up here, the actual proportion of interest here versus south of the border is lower as well.
Jeff's explanation sums it up pretty good I think. Also, don't forget, most retailers are financing their 60 day shipments with 9 to 14% money - thats what secured business credit goes for these days. I'm lucky because I have a house and a secure line of credit I borrow against so its around 3%. That savings gets passed onto my customers. But without that I can tell you my prices would be higher, thats for sure.