Outlaw pricing in currencies other than the Euro

A

ajapale

Guest
Should the government consider outlawing pricing in currencies other than the Euro?

If I am buying (say) packaging equipment manufactured in Italy I will have to deal with a UK agent who will price in sterling. I will then incur two exhange risks and will problabley loose out on both counts.

I have a feeling that this goes on all over the place especially with the UK based supermarket.

Surely one of the advantages of the single currency was to eliminate exchange risk.

Any one got any thoughts?

Please forgive the post as it could be more articulate but I hope you get my drift.

A.J.A Pale
 
> Outlaw pricing in currencies other than the Euro

If you are dealing with a UK gent who is based in the UK he will naturally invoice you in sterling and I don't know what our government can do about that, but if you buy products in this country, they should be priced in euro, unlike some products in B&Q.
 
Re: > Outlaw pricing in currencies other than the Euro

Nothing to stop you going directly to the Eurozone country and negotiating with them directly...or using an Irish agent?
 
Re: > Outlaw pricing in currencies other than the Euro

Or negotiating with the supplier to invoice you in Euro's and have them take the currency fluctuation risk

i.e. agree the price for the goods in Euros per unit. If the exchange rate changes then the supplier takes the risk as to which way it goes. You however have your goods at a fixed cost.

C
 
Re: > Outlaw pricing in currencies other than the Euro

This is not realistic - Are you really suggesting that every exporter supplying goods into Ireland has to price in Euro? Do you really think that every US company, every Indian software company, every eastern european company is going to jump just at the whim of the Irish Govt? No - they will just stop supplying to Ireland.

Have you approached the Italian manufacturer & told them that you don't want to purchase in Sterling?
 
Re: > Outlaw pricing in currencies other than the Euro

Thanks for the comments.

Im sorry my post should have been clearer, but what I meant was trading goods and services from one eurozone country to another eurozone country.

Unfortunately some of these goods and services are routed through the UK thus incurring the double exchange risk.

Agents often have exclusivity deals with the manufacturer which precludes dealing directly with the producer.

Thankfully more and more buyers are concluding deals in euro directly with eurozone suppliers thus taking full advantage of the single currency.

Rainyday, yes we will continue to use USD for internationally traded commodities and perhaps Sterling for shipping and some other services but I think the euro will grow in usage especially in eastern europe. I'm not sure what currency Indian software companies use but I suspect that that they would not refuse a contract in Euro.

My main point was to highlight the ineffiency of using two currencies where one would do.

Davido, do B&Q really price in sterling?

Thanks,
A.J.A Pale
 
Re: > Outlaw pricing in currencies other than the Euro

Agents often have exclusivity deals with the manufacturer which precludes dealing directly with the producer.
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Hi AJA - Thanks for the clarifications. I really don't see any role for Govt and/or regulation in this matter.

Surely the free-market economy rules should apply, i.e. you can look for an alternative source for your product from a supplier who will invoice in Euro, or you can negotiation with the current supplier to invoice in Euro, or you can pressurise the manufacturer to provide an option to buy in Euro.

If none of these options work, I would guess that the size of your business isn't significant enough to the supplier for it to be worth their while changing their current policies.
 
do B&Q really price in sterling?
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I remember a thread a couple of months ago discussing B&Q and one of the issues was that some of their products were priced in sterling in the shop in Liffey Valley. I think it was plants etc. They had a special offer but the pricing on the shelf was a sterling price which was converted to euro at the till.

You may well be paying a premium for your products because of the fx transactions but the agent may be getting a better price from the Italian supplier than you could get. As rainyday says, it might be down to the size of your business. The agent would probably be able to negotiate a better deal because he would be dealing in larger volumes than you so by the time he adds on his margin and the fx costs, things probably balance out.

Try to negotiate a better deal with the manufacturer.
 
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