Foreign Foods Just as Expensive, Despite 10% Reduction in the Euro and the Pound

  • Posted by a hidden member.
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    Sep 09, 2016 6:51 AM GMT
    I occasionally buy crackers imported from the UK and europe. Despite that both the pound and the Euro have devalued 10% against the dollar since early this year, I notice that none of the prices of foods imported from the UK or europe have gone down in price. In effect, someone (the importer? local store?) has essentially increased prices by about 10%
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    Sep 15, 2016 1:43 PM GMT
    there is a lag in most supply chains; the crackers are still being made with materials & labor rates bought last quarter.
    the cracker manufacturer is not going to lower his price unless he is forced to or it is to his advantage to under cut the competition.
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    Sep 15, 2016 10:53 PM GMT
    pellaz saidthere is a lag in most supply chains; the crackers are still being made with materials & labor rates bought last quarter.
    the cracker manufacturer is not going to lower his price unless he is forced to or it is to his advantage to under cut the competition.


    The manufacturers aren't expected to lower their price. Let's say the manufacturer is in England/Scotland. Assume sells a container of crackers to an american importer for 10,000 GBP. 6 months ago, that 10,000 GBP cost the importer 14,500 USD. But for any crackers the importer bought in the last 3 months or so, the american importer only had to pay 13,200 USD to get the 10,000 GBP to pay the British manufacturer. The British manufacturer still gets the same 10,000 GBP. But the cost of the container of crackers that reaches the USA has now decreased by 1,300 USD, or 9%. One ought to expect that the importer will reduce his price to the distributor by 9%, etc.

    That's the way it works for hard goods like cars, truck,s tractors, and aircraft engines. Why should it be any different for crackers?
  • Apparition

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    Sep 16, 2016 4:35 AM GMT
    HikerSkier said
    pellaz said

    That's the way it works for hard goods like cars, truck,s tractors, and aircraft engines. Why should it be any different for crackers?


    because people are stupid and dont demand it. This happens in canada all the time. We buy america vegetables say. "reports" of the american dollar might going up in the future will cause vegetable prices to go up in canadian dollars instantly, even if it never does actually go up. But ACTUAL canadian dollars going up against the american buck...THAT never gets passed on.
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    Sep 17, 2016 6:19 AM GMT
    I buy American made products.

    EU/UK is garbage anyway and I am good with what we have!