What does the revaluation of the Chinese Yuan mean for me if I am importing from ? Do I get less for my buck?
Of course there are influences:
- originally 1 USD = 8.3 RMB
- now 1 USD = 8.17 RMB
So the supplier loses money if he wants to change USD to RMB...suppliers have to use RMB to buy raw materials and pay salary, pay tax, etc...SO if they want to earn the same amount of RMB, they have to raise the price in USD, or try to loss his margin...
Quoting from [Villa]:Of course there are influences:
- originally 1 USD = 8.3 RMB
- now 1 USD = 8.17 RMB
So the supplier loses money if he wants to change USD to RMB...suppliers have to use RMB to buy raw materials and pay salary, pay tax, etc...SO if they want to earn the same amount of RMB, they have to raise the price in USD, or try to loss his margin...
You are right, but depends who you deal with. I've been in the Importing business for 11 years and deal with several honest and trustworthy Suppliers. They have not increased any prices since the revaluation. We usually get a slight price increase when raw materials, like plastics go up due to rising oil prices. As we buy large quantities per order, our Suppliers uuually absorb small increases, but pass on any large increases. Such is the way once you build up trust with them. This way, everyone's happy.
Also the honest and trustworthy Suppliers has to increase the price as they will loose there profit if not. If they realy make a big money(profit) from your order you are right. They will not go for the price increase as they want you(buyer) with them and they can still hold the loss from the exchange different. If they increas the price the buyer will try for a lesser rate suplier so the looe the supplier Am i right?
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Linda
www.ruiseng.com