Pricing on the increase- second time in two weeks

[Esquire]

Hi All

I am sure by now everyone knows that the Rand is taking a major hiding against other currencies , The Rand is currently trading at R7.60to the USD$1 which is another 4% devaluation since Friday and over 13% since beginning of this month, and is expected to touch R7.80 before month end , this translates to pricing again going up which was already done last week as seen with Hard disk drives , memory, processors and software and on todays pricelist which is now available for down load from our website or via the Product Spotlight links.

http://www.esquire.co.za/specials/2011_09_17Spotlight.html

An example of what is happening right now !!! 1TB HDD-7200RPM , we were just quoted R439.00 for a quantity of 10k units and we are still currently selling at R 409 as we bought last week.

We are trying to hold pricing firm as best as we can, as we ordered more than our usual quantities, but if we need to order more stocks they will come in the higher pricing so please order now.

We could have been like the rest of the other suppliers and increased our pricing and use Rand Dollar as an excuse but we opted to rather pass that benefit to our clients.

Regards
ESQ

 

[Riot2]

Surely when dealing with such large volumes of business your exchange rates are fixed weeks in advance using forward exchange contracts when you suspect a drastic change.

 

[Esquire]

You are 100% correct we do have FEC for two months in advance but those are normally used for Sea Shipments that is why you see will items like keyboards , cases , monitors do not up as much as items that are brought in by Air,
The standard practise is to use Spot Rate for Air Shipments, but we have been using up those FEC for Air shipments as well over the last few weeks that is why we still holding prices down comapred to other pricing I have seen this morning.

 

[Riot2]

Fair enough - thanks for an honest direct answer.