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Old 17th July 2015, 10:37 AM
RyanM RyanM is offline
Join Date: Nov 2008
Posts: 51

Originally Posted by Tench View Post
Pricing in their own currency makes sound sense as it eliminates them from currency fluctuations which the supply chain and/or end user has to stand instead. This will give their business stability and the ability to keep to tight margins, so it is the wholesalers/shops that are dictating the market prices.
JSB pricing their pellets in CZK does keep them immune to currency fluctuations (and I agree with them doing that, I'd do the same), but currency fluctuations do occur.

So the fluctuations have to be taken into account by those further down the chain. This means in effect there will always be a point or two in the margin that is there purely to protect against a currency shift.

This is life in international sales.

As we keep a fairly large amount of stock across the board, our prices shift a lot slower than most (as it will have been bought and paid for months before any given currency change); but that works both ways - if the currency shoots off in the other direction, we can hold the lower prices for longer.

Over a year, it balances out.
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