Exchange rates - Someones cashing in!

Questions about bike hire abroad and everything light bike related. No off-topic chat please

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Flossie
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by Flossie

The exchange rates between US Dollars and GB Pounds have been making headlines latley. With Brits flying to New York to do their Christmas shopping, as everything is effectively half price, how come, we over this side of the Atlantic arn't buying half price Oakley, Cannondale, Trek, Litespeed, Zipp etc etc??
Is someone somewhere cashing in?

If you US chaps wanted to buy a pair of Oakley Radars in the UK, it would cost you about $300!!! :shock:
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strobbekoen
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by strobbekoen

Since when is this a finance forum ?

by Weenie


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HammerTime2
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by HammerTime2

I believe it is common in many industries, including the bicycle industry, for importers to smooth out and absorb some of the exhange rate fluctuations. They often do not adjust prices in the import currency as quickly as the exchange rate moves. This is usually true in both directions. "Fortunately" for them, their margins are often large enough to enable them to do so without going in the red.

KB
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by KB

Another case of rip-off Britain methinks!

2002SaecoReplica
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by 2002SaecoReplica

Flossie wrote:The exchange rates between US Dollars and GB Pounds have been making headlines latley. With Brits flying to New York to do their Christmas shopping, as everything is effectively half price, how come, we over this side of the Atlantic arn't buying half price Oakley, Cannondale, Trek, Litespeed, Zipp etc etc??
Is someone somewhere cashing in?

If you US chaps wanted to buy a pair of Oakley Radars in the UK, it would cost you about $300!!! :shock:


Look into the tariff rates on US made goods coming into the UK and you will see why they are so expensive.
- Zipp rims will break if you look at them too hard
- R-Sys wheels will spontaneously explode
- The ZG crankset will never, ever exist
- Everyone needs Lightweights, even if they're fat and old
- Parts actually made of metal are SO 10 years ago

GrahamB
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by GrahamB

KB wrote:Another case of rip-off Britain methinks!


Imagine you were an importer and had a warehouse full of stock bought & paid for 6 months ago...
Graham

mathi
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by mathi

On the BBC news this morning it claimed the UK was the 2nd most expensive country , only Norway was more expensive :noidea:

KB
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by KB

GrahamB wrote:
KB wrote:Another case of rip-off Britain methinks!


Imagine you were an importer and had a warehouse full of stock bought & paid for 6 months ago...
Mate, don't know if you've ever visited the Old Dart, but I can well believe Mathi's statement above. I've been to Switzerland and Japan, which are often put forward as very expensive and neither to be as expensive as the UK.

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drjones96
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by drjones96

Why is it so expensive in the UK? I don't see anything special about it. :lol:

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CharlesM
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by CharlesM

KB wrote:Another case of rip-off Britain methinks!



Not sure how your exceptionally highly valued currency is ripping off Britain...

Then again I guess it's tougher to export to the US with the exchange rate.



It's not exactly like your work is worth twice as much though... Paid in Sterling, your average sanitation engineer in the UK earns as much as a lawyer in the US. But then that seems fair as they both are responsible for slinging as much crap as possible :lol:

GrahamB
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by GrahamB

KB wrote:
GrahamB wrote:
KB wrote:Another case of rip-off Britain methinks!


Imagine you were an importer and had a warehouse full of stock bought & paid for 6 months ago...
Mate, don't know if you've ever visited the Old Dart, but I can well believe Mathi's statement above. I've been to Switzerland and Japan, which are often put forward as very expensive and neither to be as expensive as the UK.


Except for tyres: Michelin PR2 from UK: AU$35;
Michelin PR2 from large Melbourne shop: AU$95 :shock:

I've not spent more than a few months in the UK, but my impression was the high cost of living was largely about London, rather than the UK in general.
Graham

GrahamB
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by GrahamB

PezTech wrote:
It's not exactly like your work is worth twice as much though... Paid in Sterling, your average sanitation engineer in the UK earns as much as a lawyer in the US. But then that seems fair as they both are responsible for slinging as much crap as possible :lol:


Actually what is noticeable in the UK from an Australian perspective is how hard life is if you're in a low paid job... If you work in financial services in London, all is well. If you work selling burgers in London... :(
Graham

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evenfasterson
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by evenfasterson

Thats because minimum wage isnt big enough and doesnt have enough levels.

I can go home over the summer (im at uni) and work somewhere where a 15 year old kid that does sweet FA all day and moans like an absoulte arse gets paid the same as me and doesnt work anywhere near as hard. How is that fair?

Oh well, im doing a degree that should help. :D

The shops in the UK arent benefitting from the exchange rate its the importers that will reap the rewards as the goods are still worth what is being charged for them as a quality product and people will pay it its as simple as that.

Personally I have found it difficult to get shops in the USA to ship to the UK there are very fewwho will do it for you. Normally it involves getting it sent to a freind that lives in the states and having them send it over, its like the shops dont want to accept orders out side the USA and Canada. I realise there are certain import rights which british companys have to say they are the only ones allowed to import a certain product but how come places like CRC ship all over the world?

KB
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by KB

GrahamB wrote:
PezTech wrote:
It's not exactly like your work is worth twice as much though... Paid in Sterling, your average sanitation engineer in the UK earns as much as a lawyer in the US. But then that seems fair as they both are responsible for slinging as much crap as possible :lol:


Actually what is noticeable in the UK from an Australian perspective is how hard life is if you're in a low paid job... If you work in financial services in London, all is well. If you work selling burgers in London... :(

London's awash with money, but it needs to because of the price of property. However, supermarket prices etc are the same wherever you live. I've been to OZ and loved it, and it was great value for money. ANd in the words of Richard Neville, it's a lot better being poor in OZ than the UK. His comment was you need bugger all clothes to get by in Sydney and can sleep on the beach. Then think about some freezing cold flat in Maida Vale in Winter. :D
Pez, despite what anyone says about the high value of the pound, the fact remains that in most cases there's parity between the dollar as that dollar goes a lot further in the States.

by Weenie


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Roobay
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by Roobay

Please remember that your gift/goods allowance when returning from the US is £140 about $275 unless you want to break the law and not pay duty or VAT :? You can however still declare goods when re entering the UK and pay 4% import duty and 17.5% VAT and proberly an amount of excess baggage cost too.
Customs and excise are hotting up on this at the moment, and i know a couple of people who have been asked to open there suitcases or large boxes when coming back to the UK.
jr
i like people... i just can't stand assholes

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