What's up with the value of the YEN?

[Cyka UchuuJin]

Importers of European products suck big time. And it's not always a Japanese person behind it. In 2011, we took back control of our JPY suggested retail price list after our main distributor had not changed the prices since 2008. They were crazy high, despite the fact that they buy from us in Euro and had set an insane exchange rate. The owner of that distribution company is a European, btw!

So it's very likely that your cheese importer is probably someone who buys in Euro and has been raking it in on the exchange rate for the last few years!

[gaijinpunch]

Why do you have to set it for the year? No offense, but that's kind of ridiculous. If you do have to set it for the year, you need to figure out a way to hedge that in case things go south, which it looks like, for the first time in 5 years, there is a good chance happening.

EDIT: South for some. This is a huge improvement for me and would alleviate me of a LOT of headaches... which is why I full expect it to not happen.

[Cyka UchuuJin]

No offense taken. However, price lists for furniture another expensive goods generally come out once a year for everyone, and especially the Japanese like consistancy. they order from us in Euro, lead time is anywhere from 3-6 weeks, and then another 4-6 weeks on the water and clearance. From the date they place the order, they have already calculated their profits. To change the price lists more than once a year also could mean they have a lot of stock they are sitting on that suddenly loses value if we reduce prices. On the same hand, parallel importing is now a headache for most of the world, so we have to be very careful in calculating the correct exchange rate in order to avoid someone buying off websites in Europe and then reselling it in Japan (our warranty in Japan covers furniture bought through an authorised Japanese dealer).

Not so ridiculous now?

[gaijinpunch]

No, not at all.

You are basically entering a future contract... and have to deal with the same problems futures traders deal with. However, this seems extra risky as the expiration date is 12 months in advance, not 3. I would assume you have the extra headache of keeping your prices competitive.

[Coligny]

Time for 1 unique world currency... Just look, it worked so well with the Euro...

[Cyka UchuuJin]

No, not at all.

You are basically entering a future contract... and have to deal with the same problems futures traders deal with. However, this seems extra risky as the expiration date is 12 months in advance, not 3. I would assume you have the extra headache of keeping your prices competitive.

You've got it spot on. Generally we look at what the forecasts are and use a 10-15% higher exchange rate as a safety net. The last couple years have been fairly easy to calculate, but this year we're really stumped as to what's going to happen, and if Abe san is going to actually remain in office long enough to really weaken the yen as much as he says he will.

Keeping prices competitive against our competitors within Japan isn't so much of a headache as the yen taking so much of a nosedive that the parallel importers jump into placing orders direct from Europe. I can't stop dealers in Europe from selling to Japanese customers, but it does make honouring the warranty difficult because it's only valid in Japan when bought from authorised dealers of ours.
I think we're nearly agreed in our finance department that we're going to use 135 Yen-1 Euro

[IparryU]

Time for 1 unique world currency... Just look, it worked so well with the Euro...

as long as it is not a fiat currency... i will be fine with that!

[yanpa]

Time for 1 unique world currency... Just look, it worked so well with the Euro...

as long as it is not a fiat currency... i will be fine with that!

Yeah, those 500s are a pain to carry around in your pocket

[Coligny]

Sorry... I'm an Alpine-Renault guy... no can do...

[Harhar]

Even an Abarth? Either way, difficult to fit in ze pocket.

[matsuki]

No, not at all.

You are basically entering a future contract... and have to deal with the same problems futures traders deal with. However, this seems extra risky as the expiration date is 12 months in advance, not 3. I would assume you have the extra headache of keeping your prices competitive.

You've got it spot on. Generally we look at what the forecasts are and use a 10-15% higher exchange rate as a safety net. The last couple years have been fairly easy to calculate, but this year we're really stumped as to what's going to happen, and if Abe san is going to actually remain in office long enough to really weaken the yen as much as he says he will.

Keeping prices competitive against our competitors within Japan isn't so much of a headache as the yen taking so much of a nosedive that the parallel importers jump into placing orders direct from Europe. I can't stop dealers in Europe from selling to Japanese customers, but it does make honouring the warranty difficult because it's only valid in Japan when bought from authorised dealers of ours.
I think we're nearly agreed in our finance department that we're going to use 135 Yen-1 Euro

Cyka, I set everything at 130yen/USD and while the yen is still high, offer limited time campaign sales to discourage gray market imports. Trademarked the brand to put a stop to gray market advertising and will undercut any companies that are buying from gray marketers. It works out pretty well as I don't have the same products with fluctuating retail prices and new catalogs to print out (TIJ, paper catalogs are still needed) everytime the rates change

[Coligny]

When I was a kid, paper catalog and pricelists were 2 separated items... (minitrain catalog, made in Germany, pre euro, so had to deal with braziliun of currencies plus spain and portugal that worked only on barter -I was told... and they ate babees too...)

[matsuki]

When I was a kid, paper catalog and pricelists were 2 separated items... (minitrain catalog, made in Germany, pre euro, so had to deal with braziliun of currencies plus spain and portugal that worked only on barter -I was told... and they ate babees too...)

That works too but TIJ and the dealers don't ever seem update shit so it's been easiest on everyone (in my experience at least) to maintain a single retail price (yes, inflated) and discount when the gettin' is good

[Cyka UchuuJin]

No, not at all.

You are basically entering a future contract... and have to deal with the same problems futures traders deal with. However, this seems extra risky as the expiration date is 12 months in advance, not 3. I would assume you have the extra headache of keeping your prices competitive.

You've got it spot on. Generally we look at what the forecasts are and use a 10-15% higher exchange rate as a safety net. The last couple years have been fairly easy to calculate, but this year we're really stumped as to what's going to happen, and if Abe san is going to actually remain in office long enough to really weaken the yen as much as he says he will.

Keeping prices competitive against our competitors within Japan isn't so much of a headache as the yen taking so much of a nosedive that the parallel importers jump into placing orders direct from Europe. I can't stop dealers in Europe from selling to Japanese customers, but it does make honouring the warranty difficult because it's only valid in Japan when bought from authorised dealers of ours.
I think we're nearly agreed in our finance department that we're going to use 135 Yen-1 Euro

Cyka, I set everything at 130yen/USD and while the yen is still high, offer limited time campaign sales to discourage gray market imports. Trademarked the brand to put a stop to gray market advertising and will undercut any companies that are buying from gray marketers. It works out pretty well as I don't have the same products with fluctuating retail prices and new catalogs to print out (TIJ, paper catalogs are still needed) everytime the rates change

Can I ask what product you sell and where you import it from?

[matsuki]

No, not at all.

You are basically entering a future contract... and have to deal with the same problems futures traders deal with. However, this seems extra risky as the expiration date is 12 months in advance, not 3. I would assume you have the extra headache of keeping your prices competitive.

You've got it spot on. Generally we look at what the forecasts are and use a 10-15% higher exchange rate as a safety net. The last couple years have been fairly easy to calculate, but this year we're really stumped as to what's going to happen, and if Abe san is going to actually remain in office long enough to really weaken the yen as much as he says he will.

Keeping prices competitive against our competitors within Japan isn't so much of a headache as the yen taking so much of a nosedive that the parallel importers jump into placing orders direct from Europe. I can't stop dealers in Europe from selling to Japanese customers, but it does make honouring the warranty difficult because it's only valid in Japan when bought from authorised dealers of ours.
I think we're nearly agreed in our finance department that we're going to use 135 Yen-1 Euro

Cyka, I set everything at 130yen/USD and while the yen is still high, offer limited time campaign sales to discourage gray market imports. Trademarked the brand to put a stop to gray market advertising and will undercut any companies that are buying from gray marketers. It works out pretty well as I don't have the same products with fluctuating retail prices and new catalogs to print out (TIJ, paper catalogs are still needed) everytime the rates change

Can I ask what product you sell and where you import it from?

Everything from car parts to heated clothing...cheapest stuff is about 1,000円, some of the car parts go up to 900,000円. Most ships from US/Thailand/Pakistan but all HQ is in the US so it's the USD/Yen rate that I'm always watching.

[Coligny]

Everything from car parts to heated clothing...cheapest stuff is about 1,000円, some of the car parts go up to 900,000円. Most ships from US/Thailand/Pakistan but all HQ is in the US so it's the USD/Yen rate that I'm always watching.

Around the regular price for a set of spare key from Audi... without the re-programming...

[IparryU]

Well... we hit 90! I am lovin it!

USDJPY 2013.01.18.png

[Harhar]

I am very happy with this new Yen weakening trend. When I started putting my plans together for my time over in Tokyo it was 76/Dollar. I think that 90 barrier must be some kind of soft options stop barrier that needs to move based on actual sell-offs.

[matsuki]

[gaijinpunch]

Yeah, I'm in the "tickled pink" category too. Hope it keeps sliding.

[Cyka UchuuJin]

Well... we hit 90! I am lovin it!

USDJPY 2013.01.18.png

it got up to 90.20 at one point this morning. euro is about to hit 120.

[matsuki]

Well... we hit 90! I am lovin it!

USDJPY 2013.01.18.png

it got up to 90.20 at one point this morning. euro is about to hit 120.

fuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuu

[Cyka UchuuJin]

Yen has broken 120 to the Euro and 90 to the USD.

Let the slide begin!

[nikoneko]

Like button. You have no idea...

[yanpa]

Bring it on

[Coligny]

ehmmm... how is it gud ?

[yanpa]

Because effectively I export my labour and have some pay negotiations coming up which will be much easier if the yen is not so painfully expensive

[wagyl]

Whether you welcome the recent changes in exchange rates or not, I wonder if this will influence the trend.

Japan has rejected claims it is orchestrating a slide in the yen, a day after German leader Angela Merkel voiced concern over the new government's exchange rate policy.

"The criticism that (the government) is manipulating the currency rate is completely off the mark," Finance Minister Taro Aso said on Friday.

His comments in the online edition of the Nikkei business daily are the latest in a simmering row, with critics saying Tokyo's pressure on the central bank amounted to meddling that could spark a global currency war.

bringing the rest of the article back home

[Harhar]

Is the feeling around here that the Yen will continue to slide? I was reading an article similar to the one posted above during my ride over. Seems like it is good for Japanese business, but otherwise kinda bad for anybody outside of Japan (who is paid in Yen) or those with on-going purchases outside of Japan.

[yanpa]

My gut feeling, as a total non-expert, is that the yen is on one of its periodical downswings; I don't think it will reach anything near the depths it was at in 2008 (pushing 170 to the Euro etc., I don't recall what the dollar rate was). Maybe it's settle in around U$1 = 95 ~ 105 yen.

I am probably completely wrong, however.