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BAD NEWS!

I would say the best way to help protect OCUK against this would be to open more stores worldwide (especially in the australia/New Zealand region) as this would let you order even more at once :)
But i might be slightly biased in saying that :D
But really yes exchange rate fluctuations are always a issue no matter if your a importer or a exporter
 
oweneades said:
Is this currency risk not hedged at all?
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I'm guessing OCUK have dedicated USD trading account which they fund once a month to fund their purchases you can hedge but you still need to sell GBP to get USD at some point which will be more expensive no matter how your hedging.
 
malachi said:
If it starts to effect RAM prices also then those going to Haswell E better start to worry with those DDR4 prices.
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It will happen with everything, as all trade is in US dollars! :(

I used to trade with China and it was in dollars and yes it can have a big impact on pricing if the pound drops. You would not believe the cost! :mad:

Its a bloody lot when you dealing in a few grand. OCUK is in the hundred grands so, its a bloody lot of money! :(

Quick edit!

OCUK is probably millions! :p
 
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Gibbo said:
Lets hope the pound does not further weaken, it was doing such a great job at strengthening, come on UK fight this and it is no doubt being caused by Scotland wanting to go independent causing confidence in the GBP to weaken. I hope Scotland stay in the UK, them leaving will not be good for UK businesses like ourselves, but as there are no premier Etailors in Scotland for computer hardware it is also bad for them.
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God damn sweaty socks!! :D
 
They will have a buffer as I did! Its very low though mine was about 0.75% of currency fluctuation! ;)

The pound was stable when I was dealing in imports. After 2008 god knows what importers and dealers are doing. :confused:

Goodluck to all!! lol :p
 
MrMoonX said:
It should only filter to things out of stock, that you have to buy in the future, as applying it to your in stock now products is just profiteering
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LambChop said:
But your current stock which was purchased when the pound was strong will remain unchanged until the new stock filters through, or will the price rise immedately on all stock you currently have ? ;)
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Prices are almost always set on what it will cost a company to re-buy the stock at current prices. Think about it for a second and you'll see why this has to be. Let's take an example of a GPU that costs OcUK £500 one month, goes up to £600 next month, then back down to £500.

Option 1:
OcUK buys card (£500), price goes up, sells for £600, OcUK buy a replacement (£600), price goes down, sells for £500. OcUK made £100 profit on first card, and £100 loss on the second - breaks even.

Option 2:
OcUK buys card (£500), price goes up, sells for £500, OcUK buys a replacment (£600), price goes down, OcUK can't sell at £600 as everyone goes elsewhere and buys at £500 from competitors as they follow option 1. OcUK made no money on card 1, and now need to sell card 2 for £100 loss to match competitors, or have it sat in the warehouse unsold as it's now "overpriced".

Obviously, a very simplified version as it doesn't include any other costs, profit, etc, but you get the idea.
 
suspect Scots will vote to stay after all - all the 'Yes' polls over the last few days leading to all the talk of economic uncertainty, keeping the pound etc might well make people reconsider/change their minds.
 
The referendum is only a week away, it'll recover after that.

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Confused Stu said:
Prices are almost always set on what it will cost a company to re-buy the stock at current prices. Think about it for a second and you'll see why this has to be. Let's take an example of a GPU that costs OcUK £500 one month, goes up to £600 next month, then back down to £500.

Option 1:
OcUK buys card (£500), price goes up, sells for £600, OcUK buy a replacement (£600), price goes down, sells for £500. OcUK made £100 profit on first card, and £100 loss on the second - breaks even.

Option 2:
OcUK buys card (£500), price goes up, sells for £500, OcUK buys a replacment (£600), price goes down, OcUK can't sell at £600 as everyone goes elsewhere and buys at £500 from competitors as they follow option 1. OcUK made no money on card 1, and now need to sell card 2 for £100 loss to match competitors, or have it sat in the warehouse unsold as it's now "overpriced".

Obviously, a very simplified version as it doesn't include any other costs, profit, etc, but you get the idea.
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Pretty bad example as gpu prices dont tend to fluctuate by £100 due to exchange rate, and ignores the fact that ocuk dont buy "£500" gpu for 500 or 600
Most retailers / distributors use a weighted model where the current sales price is an average of the current stock buy prices
 
andybird123 said:
Pretty bad example as gpu prices dont tend to fluctuate by £100 due to exchange rate, and ignores the fact that ocuk dont buy "£500" gpu for 500 or 600
Most retailers / distributors use a weighted model where the current sales price is an average of the current stock buy prices
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It was a hugely simplified example as that's as complex as my brain can handle mate! :D
 
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