Fascinating. Thanks for the explanation, Kevin.
The problem we were faced with was this: over the last couple of years, the
dollar has slid enormously relative to the pound. We used to tie all our
prices against the dollar, even the UK prices were billed in dollars. It
was simpler to have one price, and the dollar was the most commonly used.
The problem was that as that slid, *all* our sales to all countries,
including the UK, started to slide as well, as they were fixed against this
value. This was a really bad situation to be in. One option was simply to
increase the product price. The problem with that was that the US market is
very competitive in relation to software, and our research indicated that it
would damage our sales to increase prices across the board in this market.
So the other option was to start tying prices in markets other than the US
to prices to our native currency, here in the UK. We ended up splitting the
pricing such that the UK and all international prices are fixed against the
pound, and only US citizens can purchase from us in dollars. The price is
still the same for US citizens - remember that a dollar in the US is still
worth a dollar to someone living in the US, it hasn't "slid" over the past
couple of years relative to that market. And the price in the rest of the
world is exactly the same as it was before the dollar currency slide, and
the same as it will be when the dollar recovers. We're still substantially
worse off because of the high volume of US sales that we do, but at least
we're not losing money in Europe and Australia because the *US* dollar is so
weak. What we're doing isn't any different from what most other companies
do, and we really do not have a choice. That's just how it is - if anyone
with experience with international currency trading has wishes to propose a
different solution, feel free to email me off list!
Kind regards,
Kevin
Kevin Miller ~ [EMAIL PROTECTED] ~ http://www.runrev.com/ Runtime Revolution - User-Centric Development Tools
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