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Old May 4th, 2006, 16:46   #23
Delierious Designer of Dastardly Detonations
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Join Date: Dec 2001
Location: in the dark recesses of some metal chip filled machine shop
The strengthening CAD is making a mess of my US adaptor sales. When I started, I got around 1.32CAD for a USD. Down to 1.1 now. I'm going to have to adjust my online USD prices because my adaptor costs have actually gone up since I launched goofy 4 piece Version 1.

While there has been a gradual trend in the increasing value of the CAD relative to JPY, the fixed costs of importations have not similarly changed. The currency costs of: shipping and brokerage comprise a significant proportion of the landed costs of airsoft and are not subject to currency fluctuations. This dilutes the effect improvements in the exchange rate as does the relatively constant labour input to organize shipments and service orders. Furthermore the varying costs of rent and shipping have gone up due to (uh rent/property tax increases) and rising fuel prices which counter forex improvements.

On the whole, airsoft prices are slowly decreasing, but not at the pure rate of forex rates because of the contributions of constant or even rising costs. There is also a significant lag for retaillers to run out slow moving inventory bought at previous forex rates.

Looking at CAD vs JPY is still an incomplete factor on the effect of forex on Canadian airsoft. More to the point is the commodity price of materials used to make airsoft. Bulk material prices have been on a steady rise since China switched on it's manufacturing engine. I find myself paying more for barstock brass because of increased competition with China to buy barstock (no bs really, my barstock prices are going up). Similarly commodity prices of plastics are going up. While the JPY is losing value relative to CAD, the costs of materials are going up in both currencies so they're really rising to the Japanese manufacturers.

Unless your buying sacks of physical greenbacks with loonies, you won't be seeing the same rate of forex changes between the USD vs. CAD. Physical goods have inputs which contribute to their costs of acquisition in addition to a collective psychological value attributed to the bits of paper with numbers written onto them used to acquire stuff.
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