Thread: The Aussie Dollar

will someone please "tell 'im he's dreamin"

Jill told me to tell you yer dreaming.

Theoreticlly dreaming, but in reality when the dollar goes up then imports become cheaper. If the price of whitegoods, tvs, cars and the list goes on become cheaper for us to purchase, then tools and machinery, especially from Jet, Carba-tec and all of the others who import their products, can not remain immune and leave their prices the same.

This is known in the legal world as price gouging, they should be adjusting their prices to reflect the rise in the Aussie dollar and not just watching their bank balances get fatter at our expense.

The Aussie is only really rising against the US$

So prices of tools will only fall if they are completely made in the US.

What will most likely happen is that tool prices in the US will rise or else they will go broke. They can't sustain those prices for much longer.

No Wait, they are already broke, I mean "more broke than they already are".

Cheers

BoBL, even though our dollar is rising against the greenback it still effects imports on everything coming through our ports. The vast majority of goods made overseas trade in US dollars, as it is, and has always been seen to be the strongest currency. It doesn't matter if the product is made in the US or Taiwan, the product is still linked to the greenback and as such the price is adjusted. There are even companies here in Australia that only trade in US dollars, my wife used to work for a company in Melb who exported their product overseas and they would only trade in US dollars.

So it doesn't really matter where it is made as just about every overseas manufacturer deals in US dollars, especially Jet who are a US company.
Like i said with white goods and tvs which aren't the last time i looked made in the US, their prices will shortly start to fall because of the strength of our dollar.

Originally Posted by smeds

BoBL, even though our dollar is rising against the greenback it still effects imports on everything coming through our ports. The vast majority of goods made overseas trade in US dollars, as it is, and has always been seen to be the strongest currency. It doesn't matter if the product is made in the US or Taiwan, the product is still linked to the greenback and as such the price is adjusted. There are even companies here in Australia that only trade in US dollars, my wife used to work for a company in Melb who exported their product overseas and they would only trade in US dollars.

So it doesn't really matter where it is made as just about every overseas manufacturer deals in US dollars, especially Jet who are a US company.

Sure I know this, but just because the finances and trade are done in US$ doesn't mean that prices from 3rd parties will drop. In some situations currency devaluation causes prices to go up. What happens is the third party country (eg Taiwan) who make/sell product in US$ still don't want to be caught holding too many worthless US$ so they use the falling US$ as an excuse to increase their prices over and above the fall rates - after all its their profit that has to retain or increase in value. I don't blame them I wouldn't want to be left holding a less valuable currency in my portfolio.

If the raw materials and energy prices go up faster than the $US goes down then that just adds to costs. Our Aussie raw materials companies are just as much to blame about price rises as anyone else.

I did a comparison on stuff from the US (Rockler) and Carba Tec, even with postage it's still cheaper to buy abroad.
I ordered an up-cut spiral bit on a Thursday and it arrived the following Wednesday.

Cheers
Tony

With the dollar at these levels, for me it becomes interesting to look at buying direct from US and elsewhere for smaller items. Usually, if we're much about 80c/USD it's worth it.

Don't know if many prices will come down locally. The exception I've seen is the big print on the front page of Gary Pye Woodworking which shows price drops on pen kits. Wouldn't hold my breath on big machinery though!

Cheers,
Dave

Originally Posted by Ozkaban

With the dollar at these levels, for me it becomes interesting to look at buying direct from US and elsewhere for smaller items.

It sure does!

Usually, if we're much about 80c/USD it's worth it.

It depends what you are purchasing. eg Chainsaw parts are still worth it at as low as 60c. The big issue for me is warranty so I tend to buy stuff that is not likely to have these probs.

The us retailers are really hurting. I have never seen so many offers and specials from places like ENCO. Their prices will just have to go up. The only reason I'm hanging onto my few US$ is because I have to travel there from time to time.

Interesting to note though, towards the end of last year when the $AUS dropped in value against the $US that one of the big woodworking suppliers immediately increased their prices quite considerably on all stock including their current stock at hand. This increase was across the board and when I mentioned to one of the sales staff that surely all their stock would not be new stock and some of it must be at the old prices I was told that the store only had "new stock" and when I told them that Gary Pye had the same item I was going to buy, at the old price plus 20% off. I was told to "go and buy from them then".
I see now the $AUS is stronger against the $US that the same store hasn't brought down their prices.

Anyone willing to believe that our $ going up means that what we import will go down can contact me through this forum.

Boy! Do I have a deal for them.

There is this big bridge in Sydney which we are going to sell for scrap. I am prepared to let you in on the ground floor and buy in really, really, really cheap. All I need is for you to cough up some $ and we'll go from there.

Seriously, however, how often have you seen the price of a woodworking magazine go South because our $ has gone North. I have only ever seen the prices go North. More is the pity.

Just bear in mind that we need to continue to support our locals during this time [meaning those who also support us] - if we don't then when we need them there won't be anyone there.

Regards,
Bob

Originally Posted by munruben

Interesting to note though, towards the end of last year when the dropped in value against the that one of the big woodworking suppliers immediately increased their prices quite considerably on all stock including their current stock at hand. This increase was across the board and when I mentioned to one of the sales staff that surely all their stock would not be new stock and some of it must be at the old prices I was told that the store only had "new stock" and when I told them that Gary Pye had the same item I was going to buy, at the old price plus 20% off. I was told to "go and buy from them then".
I see now the is stronger against the that the same store hasn't brought down their prices.

That's what I mean by volatility - whenever currencies vary quickly up-or down business people are spooked by it (or see a chance for easy $$,) so prices don't go down, they might even go up

Originally Posted by BobL

That's what I mean by volatility - whenever currencies vary quickly up-or down business people are spooked by it

Media love this - a perpetual story...

"The Aussie Dollar is rising - the poor exporters are doing it tough!"

then

"The Aussie Dollar is falling - the poor importers are doing it tough!"

repeat, ad nauseum

Cheers,
Dave

BobL why are chainsaws parts cheaper in the US? I was going to buy a few new saws and a mate says don't buy them here buy them in Germany I paid 1/2 price in the US should be cheaper in Germany. So I went to a chainsaw shop a few km from Vibling(spelling) where they make many Stihl saws and they were the same price as in Melbourne.
Why does everyone say our $ is rising? We have one of the most stable currencies in the world, we did have a fall when the US pulled $'s out because they needed them.
When the Euro was introduced or $ was worth 60 euro cents it stayed the same + or - 4 cents for 10 years ( the US$ went from ~55 to ~98 in this time) we our now still around 60 euro cents even the Poms are almost back to normal. On the news they say gold's at record highs it's rubbish it's the US$ at record lows.
Pricing anything in US$ is like taking levels off a bouy in the bay with out a tide chart. The world should price every thing in Aus$ so we know if comodities are going up or down for real.