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 Post subject: Lower UK Pound value
PostPosted: Mon Jul 04, 2016 4:59 am 
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Joined: Mon Feb 14, 2005 8:44 am
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Location: Scarborough, ON, CA
I am curious if anyone knows the short and long term effect of the drop in the Pound when it comes to purchasing products from the UK.

Distributors and retailers comments would be interesting to read.


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 Post subject: Re: Lower UK Pound value
PostPosted: Mon Jul 04, 2016 5:39 am 
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Joined: Thu Jan 23, 2014 11:02 am
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Location: Barrie, ON, CA
It's entirely up to the distributor. In the case of most product Canadian retail will not change short term or long term. Only distribution, if anyone will benefit. Keeping in mind also it's volatile and not guaranteed to stay low.


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 Post subject: Re: Lower UK Pound value
PostPosted: Mon Jul 04, 2016 7:28 am 
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Joined: Tue Jul 24, 2007 10:54 am
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Location: Vancouver, BC, CA
Only about a 12% drop since Brexit. If it gets closer to 20% then I believe we will see some pricing changes not long after; maybe 6 months out? Any distributors care to comment?


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 Post subject: Re: Lower UK Pound value
PostPosted: Mon Jul 04, 2016 7:30 am 
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Joined: Fri Oct 30, 2015 7:52 pm
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Location: North Gower, ON, CA
classic recordings wrote:
I am curious if anyone knows the short and long term effect of the drop in the Pound when it comes to purchasing products from the UK.

Distributors and retailers comments would be interesting to read.


Whatever items that are in Stock in Canada would have been paid for in the old values, I can't imagine any price change for those.
Ott.


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 Post subject: Re: Lower UK Pound value
PostPosted: Mon Jul 04, 2016 8:35 am 
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Joined: Tue Apr 10, 2012 8:10 am
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Location: Georgetown, ON, CA
Why did I think this was going to be about british subwoofers.


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 Post subject: Re: Lower UK Pound value
PostPosted: Mon Jul 04, 2016 8:50 am 
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Location: Kingston, ON, CA
The only real way Canadians can take advantage of the lower British Pound is if you buy direct from a re-seller in the UK.

But even then, the banks/credit card companies don't give you the 'true' (i.e. discounted) exchange rate. After all, there is a reason why they consistently post billions of $ in profits every quarter.

Since my wife is British, we have a UK bank account which we top up whenever situations like this come up.

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 Post subject: Re: Lower UK Pound value
PostPosted: Mon Jul 04, 2016 11:43 am 
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Location: New Westminster, BC, CA
Let me provide a little reality check.

If the "British Audio" product in question is made in China, all Chinese factories deal exclusively in US$. The £ just tanked against the US$, therefore, it is going to cost more £'s to buy the US$ required to pay the Chinese factory. Bottom line, the price just went up on those products.

If the "British Audio" product in question is actually made in the UK, it will depend entirely where the manufacturer gets his parts from and what currency he pays for them in. The international piece parts market also deals almost exclusively in US$, or in prices pegged to the US$, so costs will increase for any company that pays with £'s.

I am fully expecting price increases from all of my suppliers.

You can't just look at Forex charts and compare one currency against another to get your answer, you need to know the background story.


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 Post subject: Re: Lower UK Pound value
PostPosted: Wed Jul 06, 2016 11:05 am 
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Location: Toronto, ON, CA
europroducts wrote:
I am fully expecting price increases from all of my suppliers.
Huh? So what you're really saying is that whether the pound goes up or down, we're being jobbed either way?

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 Post subject: Re: Lower UK Pound value
PostPosted: Wed Jul 06, 2016 11:19 am 
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I would imagine he's right considering how much comes from China!

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 Post subject: Re: Lower UK Pound value
PostPosted: Wed Jul 06, 2016 11:28 am 
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ripblade wrote:
europroducts wrote:
I am fully expecting price increases from all of my suppliers.
Huh? So what you're really saying is that whether the pound goes up or down, we're being jobbed either way?


Not saying that at all. If I receive a new higher export price in £'s, but the new lower exchange rate renders my landed cost to be the same as in previous shipments, then no price increase. It will depend on the longer term exchange rate. Will the £ continue to drop against the C$ or go back to the pre-Brexit rate within a few weeks/months? My example was based on the £ staying at the post-Brexit rate or going even lower. Most analysts are predicting a return to the pre-Brexit rate(s) vs other major currencies in the short to mid term.


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 Post subject: Re: Lower UK Pound value
PostPosted: Wed Jul 06, 2016 1:00 pm 
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ripblade wrote:
europroducts wrote:
I am fully expecting price increases from all of my suppliers.
Huh? So what you're really saying is that whether the pound goes up or down, we're being jobbed either way?


Reading comprehension isn't one of your strengths, is it?

That's not at all what he's saying. I'm not really sure how you could come to the conclusion you did after reading europroducts post?

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 Post subject: Re: Lower UK Pound value
PostPosted: Wed Jul 06, 2016 1:17 pm 
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europroducts wrote:

You can't just look at Forex charts and compare one currency against another to get your answer, you need to know the background story.


Good point. Thanks for that.


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 Post subject: Re: Lower UK Pound value
PostPosted: Fri Jul 08, 2016 12:06 pm 
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europroducts wrote:
ripblade wrote:
europroducts wrote:
I am fully expecting price increases from all of my suppliers.
Huh? So what you're really saying is that whether the pound goes up or down, we're being jobbed either way?


Not saying that at all. If I receive a new higher export price in £'s, but the new lower exchange rate renders my landed cost to be the same as in previous shipments, then no price increase. It will depend on the longer term exchange rate. Will the £ continue to drop against the C$ or go back to the pre-Brexit rate within a few weeks/months? My example was based on the £ staying at the post-Brexit rate or going even lower. Most analysts are predicting a return to the pre-Brexit rate(s) vs other major currencies in the short to mid term.
Guess I read too much between the lines. The way I see it, prices should drop even on goods drop-shipped from China as the markup value to the parent company has decreased against the Canbuck, a benefit that should be passed on to consumers here.

Unless part of the backstory is that margins will increase to make up for their reduced value, which wouldn't surprise me at all.

NordicNorm wrote:
Reading comprehension isn't one of your strengths, is it?
Depends on who's posting. I never get what Stone's talking about. :lol:

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 Post subject: Re: Lower UK Pound value
PostPosted: Fri Jul 08, 2016 1:35 pm 
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Location: Surrey , BC, CA
anything British should be cheap here because we are the colony and we have the Chinese here!!! Go Canada Go!


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 Post subject: Re: Lower UK Pound value
PostPosted: Fri Jul 08, 2016 1:36 pm 
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Location: Laval, QC, CA
There is only one way for prices in this country...and its up... up...up


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