exchange rate down

[cranky]

well now that the exchange rate is dropping...are we gona see the redution in prices for imported fishing tackle...fish finders...trolling motors and batteries?

funny how whenever the rate goes up there is an increase in prices and the reasoning because of the exchange rate...anyone noticed a drop in prices?

 

 

 

[AYOBA!]

it is the same with the petrol/diesel price, food goes up but never comes down, dis die wet van transvaal...

 

[cranky]

just think if the exchange rate dropped to R1 : $1

a calais dc reel should drop from R6800 to around R1000

a R45000 fish finder should only cost you around R6500

imagine that.

 

[Enigma]

Next items will be down but remember we bought and paid for our stock for the season in June when it was on R8 so if it maintains current levels with the next batch of buying, prices will be adjusted.

If I paid R8/1$ then I've got to price the commodity at that, who says in 6 months when my stock is depleted and I re-order the exchange rate will still be on R6.75 (Rate for Buying up over R50,000 in USD?)

 

[Little Green Fish]

regardless of all this, one thing we must realise is that we live in a place where its frowned upon when somebody acts honestly and ethical, it better accepted if we are charged through our ears for some or other reason that the rand dollar rate is this or that, we get rammed and that's the way it is and probably will stay. 

I'm stating this as I realised that even if you get an item for way cheaper than locaaly available, the local suppliers will call and threaten you, further to this, clients call and ask if what you are selling is the real deal or fakes, then there's those that think it was a printing error, and don't even bother to call or if they call they refuse to accept that you could actually sell the real deal at that price, and it's this brainwashed syndrome that the importers of foreign products exploit to the fullest and beyond, how does a 400 % mark-up sound? Yeah, Crazy but true, not on everything but on selected items that are hard to come by, this is what's happening, so regardless of rate changes, and taxes and so forth, the real problem is the mindset that because we live in Africa we need to be exploited, worstened by the fact that we accepted this kind of rape a long time ago and actually expect to be ripped off, otherwise it's not the real McCoy.

 

[Enigma]

If you make a comparrison between local pricing and worldwide prices they are generally within a 7-12% range difference with one another.

Checking internet shop prices isn't really an accurate approach as they generally have lower overheads and are cheaper. Take Khan and Bluecity as examples even here in SA.

You are allowing yourself to be reamed if you buy something marked up by 400% and it is thus elsewhere available for 1/4 of the price.

I am continually under pressure because our brands are supplied at 15-25% lower than European prices even thou my shipping costs are on average higher than that of the Eu suppliers.

If one just look at the Torium 50's 2 years ago when the $ was at R11-$1 they were going for R2700 and now they are going at R1900

If you cvan show me where a top selling item is that I can sell at 100% markup instead of 400% I'll gladly undercUt the market for you, I'm really getting tired of driving my 2003 Toyota Corolla. Let's not get talking on car prices or. Service charges as charged by IT, Mechanics, private Medical, now those are the guys driving new high end cars, I wonder where they get the money for that.

 

[Little Green Fish]

Yes I know that in general local and worldwide prices differ, but here's an example of the culture of Africa (lets screw the consumer as hard as we can for as long as we can) Hust remembered Toyota with their price fixing and the hefty fine they got, some of the major Food companies (can't even remember if it was Pick nPay or Checkers, just goes to show how often it happens) and the list goes on and on.

The example I was talking about: I shopped around for a Vinyl Cutter here is SA, Cheapest I could get was around R5500, online and local distribution.  I happened to visit the US some months after that and ended up installing the same model in my house for R2100, like i said, the issue is that there's two culutres in SA (africa for that matter) one is the suppliers make as much as they can, not as much as what is a reasonable markup and the other culture is that the consumers believe thay have to pay these exsorbant prices otherwise there's something wrong with the product.

 

[cranky]

i am having a similar issue with fluke equipment...i want to upgrade one of my testers and if i buy it here in SA it will cost R32000.00 ...if i fly to the UK i can buy the same thing for R11000.00...pay for my airticket...visit family and return with money in my pocket...and heres the joke even if i buy it from a fluke agent in the UK it is regarded as a grey market product when i return...i need to go to the UK and work there for 2 years to qualify for all the benifits if i decide to collect my british passport...so my question is what if i decide to buy new test equipment while working there...no warranty when i return because it becomes a grey market product...mmmm.

the world is getting tooo small with the internet...i believe comapnies are gona have to start looking a little more carefully at this type of issue and pricing.

hilti is a good example of a company which has got smart and is moving with the times...there are no longer workshops all over SA only one in JHB where all repairs and services are carried out...the same with products if you purchase a machine or product they deliver it from JHB over night...eventually all companies will operate like this and hopefully at some stage pricing will be the same worldwide...just the cost of frieght will be additional.