Yes, but the purchase price will be in dollars whilst the cash in the bank will be in ££ or Eur.
Prices
- Thread starter andicole0
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Yes, but the purchase price will be in dollars whilst the cash in the bank will be in ££ or Eur.
Trouble is the price of that crystal ball will also be impacted, so it's difficult to say.
Caporegime
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The fact that people cannot understand that tells me a lot.
Soldato
Shhhhh, that kind of talk will get your comments deleted by kim jong maccy
Soldato
Or Vladimir the Impaler Bot.
Soldato
I hate the disagree with you.
For example, OcUK buy items in USD currency.
Day 1 - OcUK agree to pay $200 for a GPU. The Purchase Order could be raised on a day that the rate is 1.50 and the REAL cost to OcUK is £133.33
Day 3 - the stock lands with OcUK at a rate of 1.50 still, cost is still estimated at £133.33... payment of these items are due to supplier in 30 days time from now (Day 33)
Day 4 - customer pays £140+VAT. £6.66 profit expected.
Day 5-31 - rate remains at 1.50
Day 32 (23rd june voting day) - rate crashes to 1.35
Day 33 (24th June today )- invoice for good delivered on Day 3 and some sold on day 4 is due for payment but the rate has dropped to 1.40 so $200 is actually £142.85. So OcUK selling to you on Day 4 is a loss now.
Note OcUK will still ahve some stock available, and the cost is £142.85 not the expected £133.33, so OcUK adjust pricing to reflect the changed GBP cost.
Day 33 - OcUK adjust the pricing up on stock in warehouse as they paid more in ££££ than the expected price when the goods were delivered.
This is the fundamentals of how it works, companies can lose thousands of pounds in exchange rate changes. It is always a risk when items are purchased in one currency and sold in another and payment is 30 day or 60 days after delivery. The cost price in the selling currency is not fixed until its paid for. So the goods in the warehouse can change in cost value until paid for...
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Soldato
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You can bet petrol will go up,At any opportunity the petrol stations will put up their prices because they are greedy.
so are ocuk, I've never known an retailer gouge as much on new hardware as much as ocuk does, this just gives them another reason to milk us that little bit more.
Soldato
Petrol stations make very little money on fuel, its all tax tax tax!
The thing with petrol prices aswell though, is they do anything not to lower them back down again.
Soldato
"Stabalize" does not mean "return to what they were".
Soldato
They don't. It arrives, a charge is made on account in dollars and it's paid 30-60 days later. Plus returns can easily become a loss-maker if you're not careful even if you had paid on delivery. OCUK has always been very good about returns. But if they made a loss on each one, that wouldn't be good.
Soldato
Agreed, it's not the consumers problem. But to claim OcUK are being scummy/greedy etc whatever the comments were in this thread I believe is wrong. A valid explanation has been given.
Another retailer may not have 30 or 60 day credit terms, they may have had to pay in advance, hence they have the fixed price of £133.33.
Another thing could be that even though another retailer may have credit terms wiht the supplier too, their company bosses may have gambled and purchased USD previously and have a big stash of them at the 1.50 rate for the next few weeks etc. But again, that is a risk the other way, because if the rate jumps up to 1.60 they pay more.... as they have currency at 1.50 rate to spend before they can use the better 1.60 rate.
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Soldato
http://www.fxstreet.com/rates-charts/gbpusd/
And people saying it's back where it was don't know what they're talking about. It's still depressed and unlikely to get back to where it was any time soon.
Soldato
oanda.com is working, normally I use xe.com but it's struggling under the load today
xe.com doesn't let me display in candles so I use others like the one I posted earlier or this one:
http://www.livecharts.co.uk/ForexCharts/gbpusd.php
absolutely, not necessarily greedy but like i say perhaps a little knee jerk over others in the industry.
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