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Posted by Chris Daley
on 11/4/2009, 11:57 am, in reply to "Mixed blessing?"
74.100.91.14
I don't see how a strong Euro helps producers. It is transparent for their European market sales. It hurts their sales to the US. They are arguably selling 50% fewer models here in the US. It would benefit them if they bought materials from the US but I don't know of anyone doing that. All of their costs are in Euros.
A strong Euro helps collectors who are paid in Euros and can then buy from US dealers stock priced in dollars provided the stock was bought when the exchange rate was better but haven't been re-priced to reflect the current exchange rate.
But yes, if you have no job or are concerned about your job price isn't prime motivating factor in whether you choose to buy a model. Your desire to hold onto savings for a rainy day is.
--Previous Message--
: Perhaps, but the strong Euro may be a benefit
: for the producers who are nearly all
: European. No doubt that U.S collectors are
: buying less, but I wonder: if you're
: unemployed, or concerned about your future,
: how much difference would it make in your
: buying decisions if the dollar was $1.25 to
: the Euro versus $1.50?
:
: --Previous Message--
: Models here would be much more affordable if
: they were 50% cheaper. Such is the impact
: of the weak dollar.
:
: Unfortunately the 1:1250 world is not immune
: from the realities of economics. Every
: industry has seen changes due to the
: downturn and we are no exception.
:
:
:
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