New Zealand relies heavily upon a low dollar to make our exports affordable around the world. It is for this reason that we are hearing a phrase constantly repeated like some arcane mantra in media and professionals around New Zealand that ‘The New Zealand dollar must drop for the good of New Zealand’ but I disagree.
Since our dollar has risen, top quality meat that would normally be whistled off overseas is finding its way to our plates because it is becoming too expensive to move it offshore. Further, although we are not seeing these savings passed on, I would suspect that the import of petrol and other products is costing us less to bring in. Are you capitalizing on this golden opportunity?
With our dollar so high, and the US dollar lower than previous years what we are finding in the industry is that we are actually paying less than other years. Here’s how it works. We find the product required and a factory or outlet that supplies it. They give us a price in US dollars. So far, very normal, but here is the savings. Normally you would be paying almost double to get the right US dollar amount for the factory or supplier, but with the US dollar down and our New Zealand dollar up we are actually finding that the customer needs to pay far less now to get the same products bought to their store.
In this way if you are still paying the same amount for products or more then you were for instance five years ago then you are possibly being overcharged.
I suggest that as a shop or business, you make sure you are capitalizing on this opportunity by getting the same goods cheaper and using it as a weapon to bring people back into your brick and mortar stores. Have some super sales or trendy weekend functions that bring in the customers and let them enjoy the savings that due to your lower cost, won’t cost you a cent in profit.