Dollar per $

[wheelinround]

Over recent weeks/months we have seen the AU $ climb to 80c US but why haven't we seen consumer goods etc drop dramatically in price.

They are quick to put the prices up when it drops. Even imported magazines, machinery, fuel, Softwear, hardwear.

[Barry_White]

Wheelin

I agree with you to a certain extent but what you have to remember is that lot of these people may have stock that is perhaps 6 to 12 months old that they have paid for when the dollar was low and they have to get their money on.

Things like magazines etc may be a bit different but because the $ is so volatile it is probably difficult to strike a medium.

[silentC]

Is there necessarily a direct correlation between our exchange rate with the US and the price of goods within Australia?

[Wood Butcher]

I have noticed that there has been a 10c drop in petrol prices here in the last week since the dollar gained value

[Sebastiaan56]

Stock is the big issue, forward orders are often pleaced 6 months ahead as Barry says. A lot of importers will also have hedged and so their dollar is still effectively worth less,

You're not suggesting some profiteering are you Wheelin?

Sebastiaan

[Alastair]

Yes Seb,

Notice how they delay price increases for 6 months when exchange rates worsen---------------not!!!!!!!!

[jow104]

If a vendor sells something for $1 but when he imports again the same item to sell costs $2 to import he must up his price or he wont have the capital to purchase replacement stock costing $2.
So his item that was originally $1 must sell for $2 plus mark up.:(

Otherwise the vendor goes out of business.

[wheelinround]

I agree and disagree
When you say companies Barry I guess you don't mean the importers.
How many companies these days keep stock on their shelves for 6 months ?
My daughter works for a tool importer and did so for her previous position as soon as the containers come in there off on another truck, with fresh orders coming in daily.

How often do you have to wait for something to be ordered in these days, I am constantly coming up against it, or told sorry no stock.

We have jumped closer to $ for $ latley and we are not getting the benifits anywhere in any products.


As for mark ups well thats another issue.