Prices

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Tute

Tute

Tute

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Can't say I care. I have a budget for a PC part - if I can afford it, great. If I can't, then it's only a PC part.

If you want to see prices come down forget the EU referendum - just stop buying the overpriced stuff.
 

Efour

Efour

Efour

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Ace Modder said:
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...
Click to expand...

It's good of you to explain thank you.
 

Diagro

Diagro

Diagro

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Ace Modder said:
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...
Click to expand...

Here's an idea.

Pay for your goods the day they are ordered like everyone else ;)
 

cainer

cainer

cainer

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what if the exchange rate comes back to how it was by the time OcUk settles its bill, will those customers who are paying extra today get a rebate?
 

Ace Modder

Ace Modder

Ace Modder

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Diagro said:
Here's an idea.

Pay for your goods the day they are ordered like everyone else ;)
Click to expand...

Everyone else? Put it this way, I'm the UK Channel Manager for Antec, and ALL UK customers have 30 days credit terms with us. Not one of them pays on receipt of goods.

99% of UK resellers who are capable of buying from manufacturers direct will have credit accounts with them all.
 

Skiddley

Skiddley

Skiddley

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Cheshire
Efour said:
It's good of you to explain thank you.
Click to expand...

This is nonsense. Why would OcUK expose themselves to the risk of a loss. What actually happens is they ensure the margin items are sold at will cover likely exchange rate fluctuations, hence the price increase now as the currency market is volatile. Yes, there may be fluctuations in the margin they make, but I'd be shocked if there is ever loss incurred.
 

h4rm0ny

h4rm0ny

h4rm0ny

Soldato
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25 Jun 2011
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5,468
Location
Yorkshire and proud of it!
Trusty said:
June 16th closed at 1.40, today is at 1.38
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Any particular reason you went back to a week last Thursday? It's a bit like Climate Science picking the appropriate start date to show the change you want, right? So sure, go back and pick a date where Leave pulled ahead in the polls to try and show your point that Leave hasn't depressed the pound. That makes sense. Also, 1.38 is not 1.4.

It is entirely reasonable to suppose that if we had voted Remain, it would currently be around 1.5 or higher which is where it was before Leave started to pull ahead.
 
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