The basic process: Publishers set book prices (called 'list' price); booksellers buy books at list price minus a specific percentage; booksellers sell books at list price. To elaborate a bit, Canadian booksellers buy books from Canadian publishers and distributors at Canadian list prices. Even books which come from the U.S. Which means that most booksellers can't afford to suddenly start selling books at US prices: our margins simply aren't big enough to absorb the loss.
Publishers are working hard bring prices into line. And many of our distributors are offering us larger-than-usual discounts on our purchases. Whenever that happens, we pass the savings along to you.