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Author Topic: Lower AUD,whats it mean  (Read 3315 times)

Andrew

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Lower AUD,whats it mean
« on: May 27, 2013, 05:35:17 PM »
 The last few years has seen the Australian Dollar exchange rate against the USD at historical highs that I, for one never thought would stay so high for so long.

What this means for the Lapidary customers here: simply the best buying prices ever seen for Lapidary machines and supplies.  However, it is now apparent that this cycle may be broken and a lower AUD levels may continue down to the mid or low 80's ??

Great news for Australian Farmers and Exporters but not good for a industry where most is imported :o

Anyway the basics are that in the last few weeks, those Lapidary Retailers that have not hedged the Dollar or have stock secured face a 10% increase in their cost from the recent highs.  If we head to $0.80, we face a 25% increase in our costs although it may stabilise somewhere around the 90c mark.  Who knows?

Import charges and freight have continued to rise sharply but we have absorbed that in the current climate of good exchange rates.
 
There is no need to panic as we do have lots of stock in the warehouse at good exchange and 5 containers on the water now with most of the Dollar hedged well for that stock so hopefully we can cover price increases for a while. There are long lead times for a lot of this stock for most importers so keep this in mind when planning your future purchases - even though the AUD has dropped 10 cents or so very quickly, now is still a great time to buy because of these long lead times when ordering our containers of gear and foreign currency hedging strategies.

At some point retail prices will have to rise if the AUD continues to drop  hotthirsty
But we'll hold off as long as we can.

Cheers Andrew
« Last Edit: May 27, 2013, 06:07:57 PM by Aussie Sapphire »

Fullerton

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Re: Lower AUD,whats it mean
« Reply #1 on: May 27, 2013, 05:41:20 PM »
Thanks for the heads up Andrew. Can understand the need to review prices as your stock bought on good exchange rates gets depleted.

Thank goodness you are not a fuel company ... they must be edging to get in early and hoist prices!
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Curran

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Re: Lower AUD,whats it mean
« Reply #2 on: May 27, 2013, 06:40:55 PM »
It's good news for me when the dollar went over 90 cents to the us dollar it meant a $1200 pay cut on the average catch per year which was the main reason I found other jobs until this year
The bbbbbbird bird bird bird is the word has everybody heard about the word

Curran

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Re: Lower AUD,whats it mean
« Reply #3 on: May 27, 2013, 06:43:12 PM »
$12000 that was meant to be
The bbbbbbird bird bird bird is the word has everybody heard about the word

Aussie Sapphire

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Re: Lower AUD,whats it mean
« Reply #4 on: May 27, 2013, 07:18:15 PM »
People tend to get depressed when the dollar falls but it is not all bad news. There are definite winners and losers in either direction - average aussies should not be too worried about a sensible level of exchange rate.

If exporters can do better, then that helps jobs and increases economic activity which helps all of us. Nice to be able to offer imported goods at a lower price but better for everyone if dollar is a medium level which allows both importers and exporters to operate sustainably.

cheers
Leah
Aussie Sapphire - The Lapidary Warehouse

Curran

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Re: Lower AUD,whats it mean
« Reply #5 on: May 27, 2013, 07:54:57 PM »
Indeed lower prices are great but when it's at the expense of income then people like me can't afford to purchase so in the end being a production and export based economy not a service economy it does us little justice to have a strong dollar especially seeing as all our national services now have an over seas share holders majority thanks to a long stint of a service favouring government
The bbbbbbird bird bird bird is the word has everybody heard about the word

Gearloose

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Re: Lower AUD,whats it mean
« Reply #6 on: May 27, 2013, 07:59:37 PM »
Quote
People tend to get depressed when the dollar falls but it is not all bad news.


Well THIS Yank weeps in his beer along with you, when his biggest dealer gets his Dollar chopped.  In the last few years, about half of my business has been Export, so I have been finding myself cheering Washington DC every time it made a stupid move, and that was nearly every day.
Amazing how  small world changes a person's attitudes.  Some years ago when the US$ dropped, Londoners and Europeans were chartering flights for people to come here slumming, buying "Good stuff cheap", like obnoxious US tourists used to do when visiting Mexican Border towns for cheap Kalua.

steveo

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Re: Lower AUD,whats it mean
« Reply #7 on: May 28, 2013, 02:32:23 AM »
Yes I loved there Kalua.  ;D   But I wouldn't go south now you might get shot.  ???
Steve

 

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