The $500 ITAR limit is great for shooters in Canada - hell I take advantage of it sometime when there's a killer dealer.
But here's some math
Brownells has cheap shipping for small items, BUT at $500 your not going to be at a flat rate box - Brownells charged me $35.00USD for the last USPS Priority Air Package
At $500 you WILL get nailed by CBSA for the $9.95 handling fee and GST on the package
This is $25.00 in GST ($500 @ 5%) + $9.99 CBSA = $35.00CAD Extra
So $500US + $35US Shipping = $535 US (@1.101 Exchange) = $589.04 CAD
+ CBSA and Canada Post Fees ($35.00) = $624.04
So a $500 US item from Brownells really cost you $625 Canadian
That's a 25% mark up from the US dollar "deal"
This is also not including the 2.5% foreign exchange fee that most Canadian credit card charge
Yes, I am aware that sometimes CBSA doesn't charge you, the dollar fluctuates and that there are Canadian credit cards that don't charge you an exchange fee (like the Amazon.ca Visa).
It's really up to you at the end of the day who has the better deal.
This is not a knock against your business, like you say it is up to us to figure out who has the better deal. I will say that your logic stinks though.
What? I have to pay GST/HST on goods I buy in the US? Outrageous!!! You mean the same taxes that I have to pay if I buy from a Cdn retailer? Ridikerus! Total taxes will be less if I've done my due due diligence and found myself a good price. You do have to factor in that $10 that Canada Post charges for handling the taxes though, good point.
I have to pay shipping too? What a load of bull. You mention your last order was $35 sent Priority, Priority is way more expensive than First Class. Thank God all Cdn retailers ship goods for free, oh wait a second, they charge shipping too. Mind you some retailers such as yourselves do have excellent flat rates so you should definitely compare shipping rates on potential purchases.
So let's look at that $500 US purchase that could cost us $625 CDN. Like you say, a 25% difference, although I'm not sure where you got $1.10, the dollar hasn't been that low since May. We're sitting closer to 1.075 as I write this. If we assume that most Cdn retail prices are generally 25-30% more than in the US that same $500 US is going to cost approx $625-650 Cdn before we pay taxes and shipping in Canada. It's still generally cheaper to buy in the US. This 25-30% difference existed even when our dollar was at par or worth more than the US dollar. I suppose that the difference is still roughly the same is saying something about Cdn retailers trying to keep costs inline. Hopefully that will be sustainable over the long term as existing stock dwindles.
Mind you, some Cdn retailers have been very competitively priced on some goods these last couple of years, hope that it continues in this direction.
As for the guys who say that a MOE + grip only costs $18. Really guys, your going to throw out a price that only Mil/LEO can get? Is that a fair comparison? I believe that's the same wholesale price that Brownell's charge to gunsmiths/gunshops. Try and get it that cheap anywhere else in the US.