Grand Designs

Page 2 of 2  
G&M wrote in message ...

We
I haven't noticed the Japanese rushing into either currency. There is only one currency and that is the dollar. All commodities are priced from this. The price of a product is not greatly determined by exchange rates. Efficient manufacture relates costs to commodity prices and at the moment many of these are dropping in real terms. The Euro is a banana republic currency, IMO the current rate should be around E1.7 to the and correspondingly to the dollar. The Huf House price paid variation demonstrates poor commercial skills. If they had purchased a US house kit(heaven forbid) the price would have fallen by I guess around 10%. Currency variations are a fact of life and if your business can't cope with them then there is no hope for you. Manufacturing industry is rushing offshore because the present government is increasing the manufacturing overhead costs far above those of the competing nations. It also makes more sense to put your factory in Poland when shipping costs to the continent are much lower.
My observations on the product are:- 1) 0.5M and no garage? 2) How much is the window cleaning bill?! 3) How much are the maintenance costs going to be in our very wet climate?
Regards Capitol
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
muk.freeserve.co.uk> writes

<snip>
Indeed, as they were struggling with crowbars to get the corner bits to line up, the cut grain end of horizontal wooden beams was all too obvious. I wonder what they do to seal them ?.

--
Andrew

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Then you haven't been paying attention. The Asian central banks have bought about $22 trillion over the last few months.

Not "all" commodities. Just most.
--
"The road to Paradise is through Intercourse."
[email me at huge [at] huge [dot] org [dot] uk]
  Click to see the full signature.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

this.
Unfortunately there is one 'commodity' most companies use quite a lot of and isn't priced in dollars - labour !
It is quite legal to set directors pay on dollars but not employees. When almost your whole market uses dollars (i.e. an exporting company - the ones we need most) this is bad news.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
G&M wrote in message ... When

Hate to say it, but if you can't absorb a 20% currency shift, then you shouldn't be in business. If your labour costs are that high, then you're either in the wrong country or the wrong business.
Regards Capitol
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

ones
That was my point. The business did move almost all manufacturing abroad. Problem is that at this rate there won't be any manufacturing (i.e. basic wealth creation) in this country - there simply isn't the value add to cover UK labour costs.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

yup, but at what price does this gamble come?
with a transaction such as this what you want is certainty - all of your economic considerations will have been worked out at a particular exchange rate, and if you're not in a position to be able to absorb any negative currency swings without pain then forget about the chance of paying less if things do happen to go your way and take the boring-but-safe option.
-- Richard Sampson
email me at richard at olifant d-ot co do-t uk
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
David C wrote:

Exactly. They took a gamble either deliberately or through ignorance and unfortunately they lost.
--
Take out the garbage to reply

Regards
  Click to see the full signature.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Not necessarily. That's why they lose money. Besides, these people could have bought a futures contract from IGIndex or Cantors.
Or even just opened a euro denominated account and done all the currency transactions at one go.
--
"The road to Paradise is through Intercourse."
[email me at huge [at] huge [dot] org [dot] uk]
  Click to see the full signature.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Related Threads

    HomeOwnersHub.com is a website for homeowners and building and maintenance pros. It is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.