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Posted: Tue Sep 20, 2011 10:07 pm
If this is a UK venture why is the Raspberry PI pricing in $
Posted: Tue Sep 20, 2011 10:09 pm
Because the majority of our suppliers price in dollars
Posted: Tue Sep 20, 2011 10:16 pm
I suppose because it's being sold worldwide is also a good reason to use US dollars. I couldn't tell you how much a pound is worth, but I can quickly convert to/from US dollars.
Posted: Tue Sep 20, 2011 10:56 pm
What Jack said - all our components are priced in dollars, so that's how we do the maths on the eventual cost of the board. Currency markets are too volatile to make committing to a pound value a sensible thing when all the development money is in dollars.
Posted: Tue Sep 20, 2011 11:24 pm
And if you think component prices are volatile: try to get a quote for a few K of SD-cards. The current quote price valid period for SD-cards is 5 days typical, some suppliers mention 3 days... (But this is not the supplier which had a minimum order quantity of 1 20-foot container
Posted: Tue Sep 20, 2011 11:46 pm
I was just on the phone with a supplier (non-computer related) and the price changed 3 times within the same phone call
Posted: Tue Sep 20, 2011 11:54 pm
I never realised SD cards were like buying foreign currency. I wonder, do you think you could used SD cards as currency if the economic system fell through? Kind of like the technological version of gold
"Cash my cards"
Posted: Wed Sep 21, 2011 12:10 am
There's a smorgasbord of financial tools to take price/currency volatility out of the equation: long term contracts allow you to set right now a price (or a price formula) valid for a set amount of time, futures that are a commitment to buy or sell stuff in the future at a certain price, you combine that to do hedging on your costs and revenues, both the product you buy/sell themselves and the currencies you pay/receive. Or straight exchange rate insurance for just currency.
You use that against ups and downs actually, 'coz prices/currencies moving up hurt your costs, but prices/currencies moving down also hurt you if you're in a long-term purchasing contract and your competitors aren't...
You give a fair amount of money to your bank/broker in the process. You also waste a fair amount of time and talent managing that, which small firms can't. One of the main attractions of the Euro if that it gets rid of the exchange rate issue for intra-Eurozone trades.
Gosh, i'm rambling...
Posted: Wed Sep 21, 2011 12:21 am
For what it's worth, I've converted USD in a US bank account (Wells Fargo) to GBP in a UK bank account (Barclays) several times using WorldFirst.com and was very satisfied with the transaction. I did some research and concluded that WF has the lowest transaction fees and a quality reputation I didn't have to worry about. Recommended. This may be worth thinking about, setting up some kind of US distribution and payment collection point and then doing a single or relatively few WF transfers back to the UK may save both your buyers and yourselves some significant transaction fees from thousands of transAtlantic Paypal payments.