The last few weeks have seen a huge swing in the foreign exchange rate between the pound and the dollar resulting in an increase on the cost of musical instruments.With the pound falling from a high of just over $2.00 to the pound to $1.53, an instrument of $100 that was costing £50 in July is now costing £65.36- an increase of 31%!!
Here at Normans our prices have so far remained unchanged and we have absorbed earlier price increases imposed in June/July. However with further changes of up to 20% we have now been forced to apply slight increases to some of our major product lines.
Current prices are all visible on our website.
“You will all be only too aware that the dollar/sterling exchange rate is having a major impact on suppliers and that many are being, reluctantly, forced to increase prices. Clearly these changes will inevitably have to be reflected in retail prices to the consumer. Local authorities, as you know, are in the process of spending the extra £40million that has been agreed to purchase new instruments over a four year period. The MIA has written to the Federation of Music Services, the National Music Participation Director and the Department for Children to inform them of the situation and to assure them of the unavoidable nature of the changes that will be taking place. We have naturally done this in order to assure them that our educational retailers are changing prices out of necessity rather than choice.”
“In this volatile market condition where the US dollar, base of most of the products traded in the world, has been at the forefront of the movements.
The exchange rate movement between (£1 = US$ 1.9130) and (£1 = US $1.568) is a jump of 22%”
“Since June this year, the £ sterling has fallen in value against the US dollar by over 30% with most of this happening in recent weeks. Many Asian countries conduct all international trade in USD. These include China, Korea and Taiwan. In addition, China is experiencing considerable cost and wage inflation. The vast increase in the value of USD means an immediate price increase of 20% on all products. Extreme volatility in foreign currency markets is expected to continue”
“Due to the strong Euro, we have no alternative but to increase again our prices for Yamaha products by an average 5%, effective on October 1st. We have delayed this increase for as long as possible, in the hope that the pound would recover against the remarkably strong euro (this is the currency used for all Yamaha purchases in Europe). Unfortunately, we will have to apply this increase to all products dispatched after September 30th“
“Due to the continued weakening pound against the Euro it is now seen necessary to pass on this currency issue to our customers. Although we have continued to limit the impact in 2008 with a subsidised exchange the rise of raw material costs worldwide adds increased pressure on costs. Therefore there will be a substantial price rise in 2009. We will do everything within our powers to continue to offer the best product and service for the purpose and should these challenging issues change we will be the first to pass this back to the musicians”
“Unfortunately with global issues affecting the money markets it has been necessary for us to raise prices recently. We have not taken this decision lightly and have kept the increase to a minimum. We are constantly liaising with the factory but with the additional costs of raw materials we have had no option but to react. We can assure all our customers if and when it is possible we will be re-visiting all pricing issues.”
Deals to suit your budget
Times may be hard, but here at Normans we always provide quality branded products at competitive prices. While its important to watch your spending don’t compromise on quality.
We have a free-phone number, so talking won’t cost you a penny! If you have any questions, please contact our Team using the details below for friendly help and advise.
Free-Phone: 08000 281415
Fax: 01283 535340
email: sales@normans.co.uk
: normans.sales
