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Old Jun 3, 2006 | 11:37 am
  #165  
cattle
 
Join Date: Jun 2002
Posts: 5,284
Originally Posted by Sunny Day
My guess is that the 25 cent rise over the last 2 years have been eaten by the middleman.
I have a perfect example of this.

My distributor currently uses a $1.22 exchange rate to set their prices. If they would even us a $1.15 exchange (to give themselves a buffer) I know that the retail cost of my product would drop from $59.99 to $54.99 which is almost a 10% savings to the customer. The competitive nature of my industry would ensure that price drop which is money back in consumers pockets.

I realize that fuel is a consideration these days but if my distributor could use the 3% exchange difference to soak that up for now. If the dollar drops enough then they could put a fuel surcharge on all deliveries and my retail price would likely not rise more than even $1.00 at retail (if at all)
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