I think you'll find prices in the GTA in most cases are more competitive than other markets. Real estate isn't applicable here because its not the same product (real estate in florida is different than toronto)
if i sold
hid kits widgets, and i was to buy 1000 of them from a manufacturer for resale, i wouldn't get as good of a price as someone who was going to buy 10000 units. In a market that is ten times smaller, the opportunity to buy in volume (and thereby ship, warehouse, distribute, etc in volume) means your unit cost goes up, and profit goes down.
i do agree somewhat that shipping also affects the price discrepancy. The cheapest way for me to ship a 4X4X2" box across the GTA with tracking is ~7$ (CPC). The cheapest way for me to ship something the same size from my brothers house in indiana to myself (with tracking) is ~6$USD. But volume also applies to this market, USPS has 10X larger clientèle, which allows for more streamlining and efficiency.
Also taxes are higher in canada. **** taxes.
I run a canadian led kit & hid kit company, if you have any questions about led headlights or hid kits in canada or would like to check out our products please contact me here: http://absolutehid.ca
2002 TiAg M3 6mt
deoranged, dechromed, led tails, ZHP knob, UUC SS v3, GROM, OEM 220M 19's, Michelin Supersports
2006 YZF-R6, bunch of go-fast stuff