Japanese importers profiteering by exploiting devalued Yen

Started May 17, 2013 | Discussions thread
ragspix
Contributing MemberPosts: 749Gear list
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Re: Profiteering is a strong word
In reply to bflood, May 19, 2013

bflood wrote:

You are operating on the assumption that all disadvantages of currency value are to be shouldered by the manufacturer, and any benefit from a change in currency value must be forfeited by the manufacturer to the customer, and if this doesn't happen, the manufacturer is cheating the customer.

Aside from your oversimplification of basing everything on only the change of the yen vs the dollar, bear in mind that the change in the yen is a recent phenomenon and if you as CEO of Nikon ordered product prices in the US to be adjusted to reflect the drop, you've be out of a job immediately. A multinational corporation never adjusts prices on short term changes - they will want to wait and see if the currency value remains stable at the new value.  Otherwise, changing prices now followed by a return of the previous currency value forces the company to either lose money on product sales or to RAISE PRICES back to what they were, something no company wants to do.  If you don't believe it, feel free to cite an example of a company that has done just that.

OR.... they maintain their price marks and develop a timed coupon/rebate program.

Your point is good, but the currency mitigation is higher up the hierarchy.it takes all of the divisions of the company into consideration.

Rags

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