Ask Experts Questions for FREE Help !
Ask
    JonoSmith1980's Avatar
    JonoSmith1980 Posts: 1, Reputation: 1
    New Member
     
    #1

    Aug 14, 2016, 04:28 AM
    How much should I *increase* prices?
    Hello

    I run a bag company in the UK. Every six months, we send our seasonal collection (20 different samples of new styles) to a sales room in Japan.


    We set a wholesale price for every bag, the sales room in Japan adds a markup and sets a showroom price, and that is the price presented to would-be shop owners who wish to stock our bags (who then mark it up by the time it appears in the shops).


    We send our new collection next week, and we see the weak GBP (see Brexit) as a good opportunity to increase wholesale prices.


    Looking at the current exchange rate, £100 (the wholesale price for a bag) is worth ¥197. This time last year, the same was true of £143. Does that mean, theoretically, we can increase prices by 47%, and the price in YEN would be the same?


    I very much doubt it is that simple. But could someone please advise how this whole thing works, and what a reasonable price increase is, without our Japanese friends feeling the pinch?


    Thanks in advance.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
    Expert
     
    #2

    Aug 14, 2016, 09:42 PM
    You should not increase selling price, merely because of the change of the price of money exchange.

    You increase prices do to production, overhead and other costs to produce.
    Increasing prices, only to profit more from an exchange rate, will come back to haunt you, if the exchange rate changed quickly and your bags are priced out of the market.

    The exchange rate is no reason to change prices.

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

If we increase the volume for a gravity fed water system, will it increase the press [ 4 Answers ]

We have a gravity feed for water for a camp. It's a 300 gal water tank about 30' above the camp. It seems to be enough to trigger the propane hot water heater intermittently but not consistently. If we increase the pipe size from the water tank, will it be enough to trigger the hot water heater...

What is the % of the increase between the 2 sales prices? [ 1 Answers ]

If you bought one product for $50.00 , and sold it for $60.00 And You bought a similar product for $70.00, and sold it for $80.00

How to increase share prices to maximise shareholders wealth [ 2 Answers ]

How to increase share prices to maximize shareholders wealth

Will increase in pump intake pipe size, increase flow rate? [ 1 Answers ]

At my cabin I use a 12 volt Flojet pump to pump water from the lake to the cabin. I am using 1/2 inch plastic pipe for the intake and outlet on the pump. Would I see an increase in water flow if I increase the size of the pipe going from the lake to the pump to 3/4 plastic


View more questions Search