When were the boards bought and what was the exchange rate at the time ?
Most boards are bought a season prior... in bulk by shops who then sell them to the public over the coming year.

Off to Maui in July, exchange rate is awesome for booking stuff online.....one for one almost!

Nice thought mate,
I don't think windsurfing gear in Oz is really a follower of monetary trends.

I once had a delusion of owning a windsurfing business, so I went and hung out and learnt how it works.

I have since found a new love of my office job and have great admiration for anyone that can survive or thrive in the retail industry.

A windsurfing retailer is basically gambling, he has to order and pay for gear up to 6 months ahead. This is because the manufacturers only produce limited amounts of equipment, first in best dressed. (i.e. Only 200 5.3m ????'s are produced annually)

The retailer has to predict what will sell and gamble.. If at the end of the season he ends up with left over gear he has to wear it !!

Bottom line is any short term currency gains go to the retailer (fair enough).

If the dollar remains this high you will probably see a prices drop slightly next season.

Be nice to your retailer and don't begrudge them their profit, they put their money on the line every season.

It also depends whether the stock is purchased in US$ or Euro . the shift in Euro has been negligable .

remember guys that all of the products that are getting made require shipping. As a result of oil prices going sky high shipping costs are going to increase SUBSTANTIALLY, thus negating any possible cost reductions as a result of a stronger dollar. I see this all the time in my line of work. We import a lot of product directly out of Asia and the manufacturers are constantly upping their freight costs and as I understand this is the region responsible for the production of most boards being made and also a little further around in Sri Lanka are the main sail manufacturing lofts.
Swings and roundabouts fellas....

sick_em_rex said...

remember guys that all of the products that are getting made require shipping. As a result of oil prices going sky high shipping costs are going to increase SUBSTANTIALLY, thus negating any possible cost reductions as a result of a stronger dollar. I see this all the time in my line of work. We import a lot of product directly out of Asia and the manufacturers are constantly upping their freight costs and as I understand this is the region responsible for the production of most boards being made and also a little further around in Sri Lanka are the main sail manufacturing lofts.
Swings and roundabouts fellas....

But US is further from Thailand than Australia is.

If what you said is correct, boards made in Thailand should cost more in the US than in Australia because the greater distance = greater shipping costs.

Just about everything that goes into your Windsurfing gear is an oil by product and we know whats been happening there . Also , as I mentioned before , Importers do not neccessarily pay in US$ . The product I import is costed in Euro , and that has only moved a few % in 12 months .

To take advantage of the strong Aussie dollar, and the discounted windsurfing equipment available in the U.S.A., and too avoid the exorbitant transport costs due to oil prices etc, I have decided I will fly my hot air balloon stateside to fill windsurfing orders. Please send me a list of the equipment you would like and cash and i will collect the kit for you

I also require a crew member to help man my hot air balloon and will be taking applications. Please include any and all relevant qualifications you may have (hot air balloon experience not required).

You might also want to let your mum now you wont be home for dinner. We leave next tuesday!

(Note: message above may, or may not be true)

DL said...

sick_em_rex said...

remember guys that all of the products that are getting made require shipping. As a result of oil prices going sky high shipping costs are going to increase SUBSTANTIALLY, thus negating any possible cost reductions as a result of a stronger dollar. I see this all the time in my line of work. We import a lot of product directly out of Asia and the manufacturers are constantly upping their freight costs and as I understand this is the region responsible for the production of most boards being made and also a little further around in Sri Lanka are the main sail manufacturing lofts.
Swings and roundabouts fellas....

But US is further from Thailand than Australia is.

If what you said is correct, boards made in Thailand should cost more in the US than in Australia because the greater distance = greater shipping costs.

Yes it is DL, but think of how many more boards get sold in the US as opposed to Australia, as well as the amount of container ships going to the US everyday as opposed to Australia and I think you might start to understand what I'm getting at. It's all about economies of scale. Quite often freight coming in to Australia is trans shipped which is added costs again. I can't imagine too many tarns shipping occurences with freight going to the US.

In the company I work for, we ship from China/Thailand/India reguarly, plenty of container boats leaving for variuos ports in OZ.

Maybe duties and import tariff's, but I though GST was suppose to abolish most of that.

Free trade? is a falsity.

Don't think the Governement would be interested in finding ways for us to spend our money at the moment.