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paulraymaekers · 16th January 2008, 10:28

Quote: (Originally Posted by jkaterenchuk)

Bruce

Let me first say that I respect the fact that as a business owner you are entitiled to set the level of pricing for your product where you want. If you have a good product that is in demand and you can afford to raise pricing and not worry about losing bottomline profits to less expensive competitors then thats how a free market works.

However, on the other hand I somewhat agree with Mikealfa's comments. I am Canadian and have done business on both sides of the border and have seen the currency exchange errosion of profits first hand on both sides of the border.

If you are worried about your price no longer being competitive then I would suggest you might look to change from Canadian suppliers to US suppliers for your components. You might find that you would then enjoy the 30% purchasing advantage with the Canadian dollar and then would only need to recoup with an increase to cover the exchange loss on the margin (difference between sell price and cost to make).

John

Hi John, it does not work this way..

this is the same as someone told me before.. the US dollar is so weak, so why don't you do your production in the states??

a Canadian company has most of its costs in Canada, fixed cost, salaries, your building, you taxes...

regards
paul

16th January 2008, 10:28	#10 (permalink)
paulraymaekers rEvo's daddy Current Rebreather/s: rEvo Other CCR Home Build Other Rebreather/s: rEvo Other CCR Home Build Join Date: May 2005 Location: belgium Posts: 1,423	Re: New Shearwater Research Inc. Pricing Quote: (Originally Posted by jkaterenchuk) Bruce Let me first say that I respect the fact that as a business owner you are entitiled to set the level of pricing for your product where you want. If you have a good product that is in demand and you can afford to raise pricing and not worry about losing bottomline profits to less expensive competitors then thats how a free market works. However, on the other hand I somewhat agree with Mikealfa's comments. I am Canadian and have done business on both sides of the border and have seen the currency exchange errosion of profits first hand on both sides of the border. If you are worried about your price no longer being competitive then I would suggest you might look to change from Canadian suppliers to US suppliers for your components. You might find that you would then enjoy the 30% purchasing advantage with the Canadian dollar and then would only need to recoup with an increase to cover the exchange loss on the margin (difference between sell price and cost to make). John Hi John, it does not work this way.. this is the same as someone told me before.. the US dollar is so weak, so why don't you do your production in the states?? a Canadian company has most of its costs in Canada, fixed cost, salaries, your building, you taxes... regards paul __________________ www.rEvo-rebreathers.com .... the earth is flat, Elvis is alive, and radial scrubbers give longer dwell time than axials...
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