How long must the Rand be stronger before tech prices improve?

Jan

Jan

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Bad news for tech and computer hardware prices in South Africa

While the South African rand has been trading stronger against the US dollar, euro, and British pound, it will take more than a few days of good exchange rates for tech prices to come down.

That’s the word from Esquire Technologies managing director Asgar Mahomed and CEO Mahomed Cassim.
 
bixt said:
"Rectron and SMD Technologies declined to comment. Pinnacle, Tarsus, Syntech, and Axiz did not respond by publication."

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LORD! This qualifies as the saltiest post of the year!
Not trolling at all. Just damn impressed at the level of NaCl :ROFL:
 
Swa said:
Bull. When it goes up prices go up immediately but when it goes down we never see the benefit.
Click to expand...

That's because they average out the pricing immediately, in that way the price doesn't go as high as it could've. Well, that's the theory at least. Also, the exchange rates they use aren't the rates you look at - mostly they take out exchange cover that lessens some impact as well. TL;DR - rand is unstable so stuff costs more.
 
So, it just looks like a better idea to look for deals on international sites for a while then, until these slowpokes catch up. Plenty of things one can buy without much worry. Especially if the deals get good enough. And they really do have some crazy deals abroad. Often.

Also. In the meantime smaller, more agile, businesses have an opportunity to gain a lot of market share. They say 6-12 months. But they'll push it as far as they can, because in the meantime they have more buying power on the imports, while raking it in double-time when they sell stuff they bought for Rands that were worth less, at the same price, for Rands that are now worth more. They want to keep their selling prices higher for longer, is what I expect.

And as was already pointed out. They adapt super quick to the Rand lowering in value. Then the prices soar on the consumer end.
 
The Trutherizer said:
So, it just looks like a better idea to look for deals on international sites for a while then, until these slowpokes catch up. Plenty of things one can buy without much worry. Especially if the deals get good enough. And they really do have some crazy deals abroad. Often.

Also. In the meantime smaller, more agile, businesses have an opportunity to gain a lot of market share. They say 6-12 months. But they'll push it as far as they can, because in the meantime they have more buying power on the imports, while raking it in double-time when they sell stuff they bought for Rands that were worth less, at the same price, for Rands that are now worth more. They want to keep their selling prices higher for longer, is what I expect.

And as was already pointed out. They adapt super quick to the Rand lowering in value. Then the prices soar on the consumer end.
Click to expand...

With the weaker yen, some items are cheaper on Japanese sites than American ones, it's quite crazy. For example Anker chargers.
 
GhostSixFour said:
That's because they average out the pricing immediately, in that way the price doesn't go as high as it could've. Well, that's the theory at least. Also, the exchange rates they use aren't the rates you look at - mostly they take out exchange cover that lessens some impact as well. TL;DR - rand is unstable so stuff costs more.
Click to expand...
I get that part, but to say it needs to strengthen to R16 and stay that way for 12 months is a bit of a stretch. There are plenty of places like on Loot where prices fluctuate daily and even in the 2000's when I ordered PC parts I had to wait for stuff to arrive in the harbour so I know these guys don't carry much stock on hand and it seems more like an extra margin they build in for themselves.
 
Swa said:
I get that part, but to say it needs to strengthen to R16 and stay that way for 12 months is a bit of a stretch. There are plenty of places like on Loot where prices fluctuate daily and even in the 2000's when I ordered PC parts I had to wait for stuff to arrive in the harbour so I know these guys don't carry much stock on hand and it seems more like an extra margin they build in for themselves.
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ROE, a lot of places build that into their quotes and it's generally a bit higher than the current exchange rate.
 
bixt said:
"Rectron and SMD Technologies declined to comment. Pinnacle, Tarsus, Syntech, and Axiz did not respond by publication."

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Real companies deal with real media
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That could be a winning post.
However, this "non-real" media site is where we all came to bitch and moan, so, it can't be useless if it's our source of entertainment/humour/news.
 
Serious? What difference will it make if the Rand is R18.5 or R17.8 to the Dollar.
Will you get your GPU or TV for R50 cheaper?
 
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