Is the decreasing value of the pound making it a good time to increase export price?

Question

With the £ decreasing by 20% against the € through out 2016 it seems a good opportunity to increase an export price and keep the product at the same price in the market. Would you agree?

This question was asked as part of our pricing webinar during the food and drink feature for 2016. You can catch up with this webinar at:

http://opentoexport.com/webinars/food-and-drink-2016-setting-the-right-international-price-for-export/

Answer

My view is you should always price to the local market. So if your prices are set in local currency then you should maintain the local currency price. You can use the additional margin for marketing costs or for (partial) rebates should your customers complain or if UK based competitors decide to pass on some or all of the 20% saving.

Bear in mind that if you don’t maintain local currency prices you may face complaints from customers should the pound strengthen again (unlikely I know but not impossible!)

Hope this helps!

Nigel Bath

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