Subject:
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Re: S@H Exchange Rate?!?! (was Re: BNSF high balls it!)
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Newsgroups:
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lugnet.loc.ca, lugnet.dear-lego
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Date:
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Sat, 6 Nov 2004 10:43:53 GMT
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Viewed:
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357 times
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In lugnet.loc.ca, Tim Strutt wrote:
> In lugnet.trains, Kevin Wilson wrote:
> > Tim Strutt wrote in message ...
> > > In lugnet.trains, Tim Tosino wrote:
> > > > LEGO is REALLY sticking it to Canadians on this set and this year. It's
> > > > $59.99 CAD. That's 1.5 Exchange! Last time I checked it was 1.2052. Why is
> > > > LEGO milking Canadians this year when the Canadian Dollar has gone up???
> > >
> > > Whoa. I see what you mean. I just checked and at current exchange rate, we
> > > could be buying it in the US for $48.24Cdn, instead of the $60Cdn on S@H.
> > >
> > > Hey Jake, do you have any idea why S@H fixed the price so high for Canada?
> >
> > Simple. Canadians complained about having prices in US$. Lego changed to
> > pricing for Canadians in CN$. When they decided to switch, the exchange rate
> > was about 1.5 (earlier, it was even 1.6!). The rate has been falling ever
> > since, now about 1.2.
>
> I'm going to have to disagree with your logic here.
> Main Street came out last year at an exchange rate of 1.31 (85Cdn vs 65US)
> and the Canadian dollar is doing MUCH better than last year.
> Why suddenly 1.50 versus 1.31, or the current ACTUAL rate of 1.20?
> If anything it should have been lower, not higher.
> Just my $0.02 worth, or $0.017Cdn, I mean $0.013Cdn at S@H rates. ;-)
> Play well.
>
> Tim Strutt
I think I have to back Kevin on this one. Major international corporations
charge a fixed exchange rate. This is an acceptable Accounting Practise.
However, I would look back at year end (or whenever the audit would take place)
and question whether the rate of exchange is too high.
Bottom-line is this: the fixed exchange rate is there to minimize the loss
on currency exchange between one market and another, not to be a material
source of revenue.
Ben Medinets
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