The discrepancy in pricing is shrinking in some areas, but in others, there really isn't much motivation to lower prices. Think about it. Sure, you can cross the border to buy a bicycle, but you sure as hell aren't going to sneak one past customs, so you pay duties and tax + the cost of the trip. Or, conversely, you can buy one online from one of the many discount bikes shops based in the US, oh wait, very few of them even ship to Canada, and for those that do, you're going to PAY PAY PAY for shipping, ESPECIALLY if they only ship UPS internationally (seriously, **** those guys).

The price difference ends up being negligible, assuming the online deal even saves you money in the end, and whereas you can pick that bike up in the LBS today, shipping internationally can take weeks, unless of course you shell out for express shipping. Again, more dollar bills out of your pocket.

Of course, your LBS knows this, and they can charge for the convenience and even gain a little extra profit on the shipping difference, as the price per bike of shipping one bike vs. shipping a dozen of them is at the very least noteworthy.