Exchange rate, effects on pricing


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jmaubin
October 14, 2008, 06:19 AM
Being new to BP shooting, I can't help but see today's pricing. with the drop of the Dollar to the euro. in the past years( 6-7 ). But here lately the exchange rates have been going the other way, the value of the euro dropping.
Been wondering how long it would take for it to show up in the pricing of BP arms, if at all? looking for any feed back out there.

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mykeal
October 14, 2008, 07:20 AM
Depends on demand for the most part. I'd say it will be at least a year, maybe two.

Voodoochile
October 14, 2008, 08:11 AM
Hate to say it but mykeal may be right being that I work in the automotive business & I don't expect to see any real change in the way things are at till maybe a year after the elections.

arcticap
October 14, 2008, 09:45 AM
If you're seeing a downward change in pricing, maybe you're seeing older stocked goods that aren't reflecting the last price increases.
What goods are you looking at and where?

mykeal
October 14, 2008, 12:58 PM
I didn't notice anyone saying they were seeing a downward price trend in anything but the Euro. Who are you asking?

arcticap
October 14, 2008, 01:13 PM
You're right, my error! :)
Maybe the prices will drop after the higher priced goods already on the shelf are sold. The even older stocked goods that have been marked up by some companies can then be marked back down closer to their original price level.
But I wonder if the dollar will devalue as the U.S. starts to mint new money to pay for the bailout? That will occur in other countries too. Maybe in the end there will be a parity or a quid pro quo as far as relative monetary values go.
The Europeans have so much higher labor, energy and value added taxes than we do which have always made their goods relatively more expensive than ours. Also, spikes in the price of raw materials or labor benefits over there can't really be predicted, so in the long run more than just the exchange rate of money is involved in setting the selling prices of their goods.
Don't they usually have annual price increases that might negate any difference in exchange rates?

gizamo
October 14, 2008, 02:20 PM
Prices on the Italian imports are going up. Look at the prices of the higher end Pedersoli rifles. There has been a noticeable increase in just the past year...Don't know if this has to do with the Euro or not. I remember reading that some of their manufacturers were not taking orders until they could figure out the exchange rates....do not know if this is so ~ just recall reading it....

But on the surface, it would make sense. Weakening dollar vs. strengthening Euro would tend to drive up the base price of guns over here....

Giz

jmaubin
October 14, 2008, 03:01 PM
Yes I guess that what I'm getting at in "01-02" the euro and the dollar traded for about 1to 1 give or take a few pennys. the exchange went to about a dollar seventy per euro now its dropping fast as it comes to light money troubles we have in the states are really world wide and a more true value of the exchange rates are coming into play. Many are predecting that the one to one of the euro and the dollar is soon to be here.

What I have seen in this sport in my short time here is that many suppliers ( not only in black powder items, but in many goods that are imported) are having more and more items on back order. It seems that no one want to buy a 2.00$ part that may soon be worth much less. When just a short time ago it was the other way around a supplyer would buy an imported item at wholesale watches its worth rise fast by the time it was sold. I bought my first black powder fire arm early this year, in that time I've seen a 10 to 15% rise in pricing

P.S. as always forgive the spelling.

arcticap
October 14, 2008, 07:38 PM
A lot may depend on whether there will be any serious bouts with inflation in the future, whether it's at home or abroad.
High levels of government borrowing can lead to eventual inflationary times, especially after the additional costs of waging & financing the war become due.
It may take a while to find out, but if inflation does hit we'll all surely know it.

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