BrisKites said...
Dont want to burst your bubble Jimmyz but it's just not the case.
We import products from all over the world but the country of origin has no relevance.
We have only ever pay in 2 currencies, USD and EURO. Never anything else.
All brands will go up unless they were paid for before the AUD plummet.
Uh, you didn't burst any bubble don't worry, you just corrected my assumptions, which I did mention I was unsure of.
No,
of course the country of origin has relevance, unless they source their materials from the US the amount which they pay to produce the kite in terms of their own 'production' currency would remain constant (granted all else being equal; materials being sourced domestically). An increase in the value of $US would mean that the company could easily afford to sell it for less $US than previously because 1$US can now buy more of that original currency used to pay for the kite's production, meaning cheaper kites in terms of $US to the distributor.
The fact that the companies use $US and Euros is because they are more commonly accepted/watched/comparable/standard/stable currencies, I'd also imagine that much of the production takes place in subsidiaries owned by US corporations . If they continue to sell at the same price in
USD as before then essentially they are making higher profit margins as their costs in terms of
USD have decreased yet they are still selling at the same price in USD(which I am assuming to be fixed). If I wanted to speculate further it might be possible that some companies will lower their selling price in USD to avoid losing too much demand, moving back towards their original profit margins so still, I reckon it is still possible that price won't change dramatically. It also depends on things such as whether the kites were pre-paid by the company at a previously weaker USD or not and whether or not orders were prepaid by retailers to the kite companies.
I doubt there is any long term price rise here, price will likely adjust(ie: go down) if the USD stays so high for long enough, which itself is unlikely so... just make sure you don't buy any overpriced kites.
)
) nature of kite sales I reckon its very possible that price will rise by a significant proportion of the change in the exchange rate... BUT you're all looking at the wrong exchange rate I believe!
Dependent on whether or not retailers react by buying fewer kites in the knowledge that they are being 'screwed'... 
