I was recently looking at some IOR scopes and it got me thinking. All of the products being imported from Europe such as S&B and IOR should be heavily reliant upon the exchange rate as a part of their pricing. So in these recent months as the Euro has plummeted and the dollar has risen in strength why have prices on newly imported scopes not reflected this change? I am fairly new to all of this but how long will the Euro have to remain down until we can expect to see a drop in the price of scopes imported from the region?
Rifle Scopes price of european scopes
- Thread starter bward
- Start date
Re: price of european scopes
Prices are very quick to go up when effected by external forces like exchange rate. But prices are always very very slow to come back down. There are reasons for this. But a main reason is obvious "Profit". Another reason is to protect their line of products amongst the people who distribute and retail their product. If they drop the price fast then their loyal distributors and retailers could loose a good bit of money from old inventory. Tom.
Prices are very quick to go up when effected by external forces like exchange rate. But prices are always very very slow to come back down. There are reasons for this. But a main reason is obvious "Profit". Another reason is to protect their line of products amongst the people who distribute and retail their product. If they drop the price fast then their loyal distributors and retailers could loose a good bit of money from old inventory. Tom.
Re: price of european scopes
Seems more complex than that.
--how much did the materials cost, and when were they purchased?
--how much (cost) was the labor to construct the product?
--when was the product completed and shipped?
The price of the item today is based on several things, including the costs incurred during manufacture and shipping.
And on how much demand there is for the product.
Unless there are too many on the market (too little demand) do not expect to see prices drop.
Seems more complex than that.
--how much did the materials cost, and when were they purchased?
--how much (cost) was the labor to construct the product?
--when was the product completed and shipped?
The price of the item today is based on several things, including the costs incurred during manufacture and shipping.
And on how much demand there is for the product.
Unless there are too many on the market (too little demand) do not expect to see prices drop.
Re: price of european scopes
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Diablo</div><div class="ubbcode-body"><span style="text-decoration: underline">Seems more complex than that</span>...Unless there are too many on the market (too little demand) do not expect to see prices drop. </div></div>
It really isn't. The retailers paid through the nose to get them when the dollar was weak. If the manufacturers drop the price of, say, a S&B 5-25 low enough for a retailer to sell it for $2800.00, the retailers who took shipments when they were, and still are, selling for $3300.00 will be taking a $500.00 loss on each one they have in inventory. Bear in mind, they literally have to move the scopes, especially the expensive ones. They can't afford to maintain that kind of inventory for an extended period of time. They have too much of their money they paid the manufacturers on the line to sit on the ones they paid top dollar for and hope the dollar plunges again.
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Diablo</div><div class="ubbcode-body"><span style="text-decoration: underline">Seems more complex than that</span>...Unless there are too many on the market (too little demand) do not expect to see prices drop. </div></div>
It really isn't. The retailers paid through the nose to get them when the dollar was weak. If the manufacturers drop the price of, say, a S&B 5-25 low enough for a retailer to sell it for $2800.00, the retailers who took shipments when they were, and still are, selling for $3300.00 will be taking a $500.00 loss on each one they have in inventory. Bear in mind, they literally have to move the scopes, especially the expensive ones. They can't afford to maintain that kind of inventory for an extended period of time. They have too much of their money they paid the manufacturers on the line to sit on the ones they paid top dollar for and hope the dollar plunges again.
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