Comments on: How To Make A Loss On A $23000 Pair of Earrings (Australian Dollar Devaluation) http://www.jogiadiamonds.com.au/blog/how-to-make-a-loss-on-a-23000-pair-of-earrings-australian-dollar-devaluation/ The Official Blog of Jogia Diamonds Wed, 08 Feb 2012 12:53:37 +0000 http://wordpress.org/?v=2.1.2 By: Helen Praeger http://www.jogiadiamonds.com.au/blog/how-to-make-a-loss-on-a-23000-pair-of-earrings-australian-dollar-devaluation/#comment-612 Helen Praeger Tue, 25 Nov 2008 23:39:16 +0000 http://www.jogiadiamonds.com.au/blog/how-to-make-a-loss-on-a-23000-pair-of-earrings-australian-dollar-devaluation/#comment-612 Hey listen guys - I know there's a bit of creativity needed in your business,so you're probably a great lateral thinker, but why EVER do you use muddy thinking in what is a simple business calculation? Were you joking???? If not, I sure hope the diamonds you offer are a good bit brighter! ;-P Of COURSE replacement materials will cost more. Even my 7 year old grandson knows "prices rise". Yes, if you're going to hold stock you'll have to replace the diamonds at a higher price - but those prices will be reflected in the next sale! (Cost of goods sold + profit margin = price) The exchange rate is immaterial (except in terms of the price tolerance of your buying public - which at $23000 for a pair of ear-rings aren't really going to blink). This really makes me doubt ever wanting to do business with you coz you are entirely off centre in your logic. If you have seriously shared your pricing strategy, (and aren't just baiting us to get this kind of response!?) all I can say is: Caveat Emptor! Cheers Hey listen guys - I know there’s a bit of creativity needed in your business,so you’re probably a great lateral thinker, but why EVER do you use muddy thinking in what is a simple business calculation? Were you joking???? If not, I sure hope the diamonds you offer are a good bit brighter! ;-P

Of COURSE replacement materials will cost more. Even my 7 year old grandson knows “prices rise”.

Yes, if you’re going to hold stock you’ll have to replace the diamonds at a higher price - but those prices will be reflected in the next sale! (Cost of goods sold + profit margin = price) The exchange rate is immaterial (except in terms of the price tolerance of your buying public - which at $23000 for a pair of ear-rings aren’t really going to blink).

This really makes me doubt ever wanting to do business with you coz you are entirely off centre in your logic. If you have seriously shared your pricing strategy, (and aren’t just baiting us to get this kind of response!?) all I can say is: Caveat Emptor!

Cheers

]]> By: Nikhil http://www.jogiadiamonds.com.au/blog/how-to-make-a-loss-on-a-23000-pair-of-earrings-australian-dollar-devaluation/#comment-613 Nikhil Wed, 26 Nov 2008 04:44:49 +0000 http://www.jogiadiamonds.com.au/blog/how-to-make-a-loss-on-a-23000-pair-of-earrings-australian-dollar-devaluation/#comment-613 Hi Helen Because we operate on very low margins, the exchange rate is not immaterial. Furthermore, because we don't take goods on consignment, we don't have an "unlimited" credit line with our suppliers, therefore, if the exchange rate does go down, then we have to increase our price in line with our replacement cost. Hi Helen

Because we operate on very low margins, the exchange rate is not immaterial.

Furthermore, because we don’t take goods on consignment, we don’t have an “unlimited” credit line with our suppliers, therefore, if the exchange rate does go down, then we have to increase our price in line with our replacement cost.

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