Originally Posted by cattle
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)
True enough;and your distributors will scream bloddy murder if they caught in the ultimate squeeze as they will.
Just remember also that when you all get excited by Harpoon's 1% drop in GST. We consumers will never see one cent of that drop. If it was a direct tax reduction to payroll taxes it would have gone into our pockets. Cheap politics at play there.