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Weaker US dollar / European imported molding

Discussion in 'Grumble Archive pre 2004 Topics' started by Whynot, Dec 27, 2003.

  1. Whynot

    Whynot SGF, Supreme Grumble Framer

    A weak dollar/obese euro/ should make imports from Europe that much more expensive to the American consumers. Wonder if at your end this statement holds true. Have you noticed during the last couple of years a price increment with respect to European moldings and framing accessories? How big that increment was and how did you cope with more expensive European items?

    [ 12-27-2003, 01:55 AM: Message edited by: American Choice ]
     
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  2. wpfay

    wpfay Angry Badger

    Since the European mouldings have always been more expensive than the imports from, say, Taiwan and people are more used to paying more when you identify a moulding being Italian or French in origin, there doesn't seem to be much shift away from those "luxury" items for those that could afford them to begin with. I have not noticed a marked rise in cost (at least no greater than normal annual increases) from suppliers of European manufactured mouldings. Perhaps the adjustments will be seen further down the line as current inventories are depleted and replacements come at a higher cost.
    On the other hand, I have seen extraordinary deals on mouldings at the trade shows which included deep discounting on all lines, including European. It seems the soft dollar has forced importers to sell overstocked inventories at bargain pricing to generate enough cash to carry on. Sometimes working from a position of weakness has its advantages.

    In a return question, Cornel, how do you see the shift in Euro/Dollar exchange as effecting how you will do business in the US? I see your line as being a good "value" (based on comparisons to other lines that sell in the same price range) and the folks that want that look aren't going to quibble over a slight rise in pricing.

    If the Euro continues to be strong against the Dollar, we may see a shift away from buying Euro based products towards items manufactured where the currency doesn't have such an advantage, which will in turn weaken the Euro, making those products attractive once again. Then again, if the American beef market goes down the tubes, we may find that domestic manufacture of these products is once more affordable.
     
  3. Whynot

    Whynot SGF, Supreme Grumble Framer

    To honestly answer your question, Wally, I'm bleeding. I haven't raised my prices in years. When euro began its steep ascent, after 9/11, I resisted making any price changes because I thought it to be a phony, highly speculative type of evolution. I still do. But fact remains that lately the dollar lost over 40% against euro and my profits are marginal, and fading away, unless I bust my prices. Not to mention that my business is exclusively dedicated to the American market...

    Happy New Year to the entire TG family.
     
  4. Dermot

    Dermot SGF, Supreme Grumble Framer

    Cornel

    Why do you not sell in the Euro zone !!!!!

    I would virtually guarantee you that there is a market in Ireland for your products……it may not be a big market……but it is there……if you want it……..

    Other places asides from Ireland such as London, Madrid, Barcelona, Paris, Montpellier etc. etc. must have potential for your range of goods.

    [ 12-27-2003, 06:31 PM: Message edited by: Dermot ]
     
  5. Whynot

    Whynot SGF, Supreme Grumble Framer

    Dermot,

    I live in the USA. My facilities are in Romania. Paradoxically, I find Europe rather intimidating, if you know where I'm driving at. Doing business in Belfast, London, Paris and Roma is not the same as doing business in New York, Boston, Chicago and Dallas.
    There are huge advantages in doing business within a truly unitary, large and powerful market: same language, same culture, same business manners, same banking... same aol.com, same cheap gasoline and small taxes ;)
     
  6. Dermot

    Dermot SGF, Supreme Grumble Framer

    Cornel

    You will have to try a bit harder to convince me……..last time I checked…..we speak English in Ireland……I’m pretty sure they speak English in the UK also………the EU is now as big if not a bigger economical power as the US…….Ireland now has a high if not higher per capital earning power and spend power as the US………it’s a myth that taxes are still higher in the EU than the US, when you factor all considerations in…….Ireland for example only has a 10% cooperation tax for manufacturers and a 12.5% corporation tax for non manufacturing businesses…….the total tax take per EU country is very similar just a little tweaking to suit local conditions…………..have you in the recent past tried to sell in Europe !!!!..

    An offer…….. if you think your products have a market in Ireland…..I will donate a few days of my time for you to test market…….you can use your US$ price list (Irish buyers know how to do a bit of currency conversion) or have a €Euro price list………. If you feel you would like to try Ireland out you can drop me a line at workcare@iol.ie if you want to keep it of this forum …………don’t fall into the trap of thinking that the US s the only market you can play in……..this thinking has being the ruination of many very good US businesses.

    Best regards

    Dermot
     
  7. Whynot

    Whynot SGF, Supreme Grumble Framer

    Dermot,

    You surely sound like one who knows what he's talking about and is ready to prove it to me. What a turn this topic took! The Grumble used to be an academic ground where used equipment has occasionally changed hands in the background when you first mentioned international business possibilities in here.
    Let's discuss this further on in private before Framer asks for royalties. [​IMG]
     
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