----- Original Message -----
From: "James Duffey" <[EMAIL PROTECTED]>
To: <[email protected]>
Cc: "James Duffey" <[EMAIL PROTECTED]>;
<[EMAIL PROTECTED]>
Sent: Thursday, March 06, 2008 8:36 AM
Subject: [Elecraft] Price increases - I feel loved....
We must have had different economics courses. As I
understand it, the weaker dollar makes American goods
more attractive to overseas buyers, not less attractive.
Elecraft and other companies that price their rigs in
dollars receive the same income in dollars when they sell
a rig overseas as when they sell it here. But as the rig
is effectively cheaper overseas, they sell more and their
income in dollars goes up.
Hi All,
Duffey has it exactly right. Elecraft isn't losing
anything, and the foreign buyers are gaining! As one recent
post by one of our brit friends said, the K3 is a bargain at
current conversion rates. Elecraft could be losing a bit if
much of their components were foreign made (meaning they
might have to keep paying more in dollars to keep up with
the conversion rate overseas), but I don't think that is the
case. Hypothetically Elecraft is losing, but only because
they didn't set their price to foreign purchasers in foreign
currency. If they had done that, they would be enjoying the
gain in conversion that has occurred. They would be
enjoying the fruits of "arbitrage'". But they didn't do
that. So, the only thing they are really losing is buying
power with respect to anything they might do with their
money regarding overseas goods. But we are all losing that
here. It's becoming more and more expensive for Americans
to buy overseas products or travel overseas. But we should
be enjoying benefits of our products becoming more
attractive to overseas buyers. I'm confident that has had
some positive effect on Elecraft's sales.
By the way, I think just about every college in the U.S. was
using Paul Samuelson's text for economics--or at least it
sure seemed like it. He was a professor at Indiana
University, I think, when I was in college. And we used his
text too. I wouldn't be surprised if it is still in use in
some form, but he's probably "SK" by now. I just wish I'd
had him for my professor instead of that nerd who kept
staring at the ceiling every day for the whole hour while
spewing out all those economic principals!
Dave W7AQK
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