LEARN - Table of Contents > Path 1: Getting Started > Course 5: Doing Business in Canada > Lesson 1: Doing Business in Canada FAQ
What is PV and how does it relate to Canadian retail pricing?
PV (Personal Volume) is used to calculate monthly qualification and quarterly activity, as well as to maintain title. PV is a global measurement that does not vary between markets—regardless of currency paid. For example, item “A” will always generate the same PV in Canada as it does in the US.
A couple of things to note:
- PV is anchored in US pricing and reflects the 40% discount associated with Designer Pricing. Therefore, PV is 60% of US retail price, unless otherwise noted (such as for a specific promotion).
- PV is generated equally on product orders regardless of their source (whether orders are placed in Designer Office or on a Chalk Site), unless otherwise noted.
- Some items do not qualify for PV, such as business materials, Watts of Love® Donations, or Starter Kits (Standard and Business Basics).
- If Designer Dollars are redeemed on an order, the PV earned is reduced accordingly, as Designer Dollars are considered product credit and are not commissionable.
Given the exchange rate*, in order to generate 100PV, Canadian Designers would need to order/sell approximately $131 CAD at Designer Pricing (available through your Designer Office) or $218 CAD at retail pricing.
Given the exchange rate, in order to generate 400PV, Canadian Designers would need to order/sell approximately $524 CAD at Designer Pricing (available through your back office) or $872 CAD at retail pricing.
*The currency exchange rate used to determine retail pricing in CAD is evaluated twice per year at the release of our Spring/Summer and Autumn/Winter collections. Prices are updated, if needed, at that time.
How does the exchange rate affect the Chalk Couture™ Designer Dollars program?
Designer Dollars (DD) are awarded and spent based on the exchange rate at the time they are earned. For example, if a program offers 20 DD US, and the exchange rate is 1.31, Canadian Designers will receive 26.20 DD. When the 26.20 DD is applied to an order, the PV earned for that order will be reduced by 20PV.
How much is shipping to Canada?
Shipping costs are based on the weight of the items in your order. For example, if you order $100 in Transfers (which are lightweight), you will pay less in shipping than for an order of $100 in paste (which is heavier).
A couple of things to note:
- Larger orders make dollars and sense! Weight-based shipping naturally gets cheaper per pound the more you order, so you’ll save on larger orders. Order your Transfers, pastes, inks, and surfaces together for your lowest per-ounce shipping costs.
- Shipping fees are not impacted by the recipient’s physical location once in Canada.
- Shipping for a “typical” Designer order that includes both paste and Transfers will range between $20 and $40 CAD depending on the specific items purchased.
Why is the shipping cost to Canada so much higher than shipping within the US?
Carrier costs are higher in Canada. In addition, shipping costs in the US do not require any government-mandated duties or cross-border transaction fees.
How long does it take to ship orders to Canada?
Under typical order volumes, orders are processed in Chalk Couture’s fulfillment centers within 3–5 business days. Once an order leaves fulfillment and is picked up by the delivery carrier, it is typically delivered in 4–10 days. Occasionally, higher-volume sales days (such as new product launches) may extend shipping times to 7–10 business days.
Why can’t Canadian orders be shipped to a post office box?
FedEx does not deliver to post office boxes in Canada. However, if you have a “parcel receiving location” (gas station, grocery store, post office, etc.) in your area, orders can be shipped to the physical address of that location.
Given the expense of regional shipping, how can Canadians most cost-effectively sell bundles?
To offset the cost of regional shipping, many successful Canadian Designers choose to invest their Designer Dollars in paste singles and Mini Squeegees they can use to complete a “bundle” purchase. They will recommend that customers purchase the surface and Transfer from a given “bundle” on the Designer’s Chalk Site and will ship the required paste and a Mini Squeegee separately, at their own expense. (Some Designers also include a ribbon or other accent in the paste shipment as an added bonus and customer incentive.) Designers are free to bundle products and sell them any way policy permits. Please note: if you are discounting the retail price of the products or including free accessories, you will need to advertise those bundles in private groups only.
Are vendor events effective in Canada?
Yes. Many Designers find that in-person events such as trade shows, craft fairs, and workshops are more effective in Canada than selling on social media and other virtual platforms. Some Designers focus on selling finished goods while others focus on selling Chalk Couture products only. Make sure to reference Chalk Couture Policies & Procedures if you are selling both at a single event.
Why isn’t Chalk Couture registered for business in Quebec or PEI?
Provincial licensing and guidelines are different in each Canadian province. In many ways, operating in a province is like operating in an individual country. Chalk Couture must evaluate the population and business opportunity in the province, ease of operations and fulfillment, translation requirements, licensing, fees and other costs, and other governmental regulations before opening a new province. At this time, Quebec, Prince Edward Island, Yukon, Nunavut, and the Northwest Territories do not meet the criteria for market opening, although we regularly reevaluate this opportunity.
How do US Designers send items to Canada?
Chalk Couture products cannot be shipped across the border unless they are free customer gifts, free Team incentives, etc. The cross-border sale of products from inventory is prohibited in both the US and Canada. If you have an international customer who would like to purchase Chalk Couture products, please direct them to your Chalk Site. Cross-border orders made by either US or Canadian customers shopping on Chalk Sites are permitted.
When shipping personal items, gifts, etc., US residents will need to fill out a customs form that declares each item included is a gift. For more information on shipping to Canada, please visit https://www.fedex.com/en-us/shipping/international-ground-canada.html or https://www.usps.com/international/.
How are the taxes calculated on an order?
Sales tax is determined by shipping address. For Designer inventory and personal use orders, the shipping address associated with a Designer’s account is used to determine sales tax.
What information is provided to Canadian Designers for income tax filing purposes?
All Canadian Designers who receive $500 CAD or more in commissions paid, bonuses, Designer Dollars (DD), products, events, and other rewards, or Designers who made purchases during the previous calendar year in excess of $5,000, will receive a T4-A for tax purposes.
Because Chalk Couture collects and remits GST/HST on the Designers’ behalf, Designers do not need to register for a business number, unless they are selling more than $30K in finished goods. See https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/14-1/direct-sellers.html#P1001 for more information.
Which provinces are approved for selling/purchasing Chalk Couture products?
British Columbia, Saskatchewan, Alberta, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, and Ontario are all approved for selling/purchasing.
Which provinces and territories require a license to sell, and how are those licenses provided?
Designers in Alberta, Saskatchewan, Manitoba, New Brunswick, and Nova Scotia are required to have a seller’s license. License requirements and access varies by province.
Designers in AB, SK, and NS: License cards for Designers in these provinces are available in Designer Office under “Profile.” An email address is the only information required.
Designers in NB: Designers need to apply for a license by clicking here and filling out the form. This licensure is managed outside Chalk Couture.
Designers in MB: Designers are required to submit a paper application that is generated by and authenticated at Chalk Central. The application will be automatically mailed to Designers in MB.
Are there programs that are different for Designers in Canada than for Designers in the US?
Yes. To be compliant with Canada law, Canadian Designers are not required to participate in the monthly Designer Subscription program. Though subscription benefits are provided to all Canadian Designers in their very first month for free, they must “opt in” to the Designer subscription if they choose to continue.
The Designer subscription includes the following:
- Full access to Designer Office (reporting, media library, resources);
- A personalized Chalk Site for 24/7 online sales;
- Chalk Shop by Square app integration;
- Participation in the Add-In program and selected marketing promotions using this feature;
- A monthly Club Couture™ Transfer automatically mailed to your home;
- And so much more!
To opt in to the subscription program and its benefits, Designers need to log in to Designer Office and opt in to the program by agreeing to be billed $19.99 CAD per month (plus tax). Designers who do not opt in remain Designers in good standing, and are able to purchase products at Designer Pricing, sponsor, and earn commissions, but without the support of and access to all the resources provided with the Designer subscription.
For more information about the Designer subscription program and limited benefits for those who are unsubscribed, click here.
Additionally, to be compliant with Canada law, Canadian Designers are not allowed to participate in the Sponsoring Bonus benefit offered in Chalk Couture’s standard Designer Début program.
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