Hi Guys,
As an Australian dealer I have a lot of experience in the exchange rate problem.
Firstly what Guy suggests is probably not easy for K&C to do as prices vary for many reasons.
I have had great changes in the exchange rate over time. When the GFC started 3 years ago our A$ was at US cents 0.98 so almost equal which was great. However the A$ fell to almost 0.60 cents in 6 weeks (I believe Candadian $ also fell a lot at that time). As I match the US$ RRP my A$ price for K&C went up by 50% in 6 weeks
It was not a good time and I remember a collector telling me the exchange rate he would start buying at again. Imagine if that had happened to American collectors and the reaction on the forum.
In August we were up to A$ 1 = US$ 1.10 which was great for the collector. However has jumped around recently and has changed 10% in one week recently.
My K&C prices on my web page are shown in US$ with a note saying A$ price will be calculated at time of purchase.
That rate I base on my most recent US$ transfer to a supplier and I show this on my home page. Last Thursday I got 0.95 cents and today got 1 to 1. I recently had a shipment that if I changed my price every day would have gone down 10% from time of payment to time of arrival.
I had a guy in on Tuesday who was asking for my prices. He has been in a few times before and knows I go on last transfer date. My shop customers are used to me getting the calculator out !! I sold him one item at $73 which he thought should be $69. I quoted him $280 for another three items but he thought they should be $271. He was basing his prices on 1 to 1 and also using a price on an item I had recently sold on Ebay (at a different rate). I was not willing to lower my price (ie. by $9 - an attitude issue involved) and he commented he could buy cheaper from overseas and did not buy. He made me feel like I was ripping him off. Some might think I should have taken the sale but as you might guess he is not somebody I hope to see in the shop again. My shop, my prices{sm4}. Similar to a mail order enquiry for 3 single figures who I quoted $101 to (included free postage). Asked me to match the $96 he said he could get them for from USA. Told him to go ahead.
I once had a customer who was pointing to different items and expecting them all to be priced on when they arrived. Impossible to keep track of. However if it is something like a Ltd Ed or series 250 I usually keep price at rate I paid until I have sold them all.
Another factor some collectors might not appreciate is postage costs. I watch this very carefully especially on bigger items. The most extreme example I can give is the Britains Rorkes Drift Storehouse which cost me US$210 to ship and retails in USA for $280. I remember the K&C Berlin ruin cost me A$50 to ship here and they sold for $149. I did not get one particular product because I knew postage factor would be too high relative to RRP.If the dealer then does free shipping then he might not be making any money at all.
Personally I wish the A$ would stay at 1 to 1. Life would be less complicated.
In my case the exchange rate is the most significant factor but for other dealers they might consider rent, taxes, sales tax, staff costs etc. Two years ago I let my sales assistant go as it cost too much to keep him.
Hope that gives some dealer perspective.
I won't even bother to comment upon Thompty's simplistic view of profit. I guess rent, shop fittings, stock levels, staff costs (I always enjoyed paying my staff for holidays I could not afford to take myself), sales taxes, postage, advertising, web costs, card fees, computers, insurance, utilites etc are simply not a factor.
Regards
Brett
Moral of the story ; maths is important after all
