You English-made goods just got more expensive

[RIDER]

Then there was the order that went from $2,500 when I placed it to $3,500 when it was time to pay.

Really? They do not keep the quote from the time of agreement?

 

[Christofuh]

Their quote doesn't have to change. It's your dollar-2-pound conversion rate that keeps going up

 

[RIDER]

The exchange has never fluctuated that much.....

 

[Christofuh]

Certainly in his particular case the mad 40% swings make no sense

 

[Will]

Originally Posted by RIDER

The exchange has never fluctuated that much.....

In a year? Could be wrong but I recall a move that cost me quite a bit ten years ago. I see a 20% decline against the pound in 2003 but can't easily find any charts that go back further than five years.

Perhaps someone in the forex business will have the data.

 

[RJman]

This is why I paid up front for my tailoring in the last 18 months. That Visa bill sucked but it would suck a lot more now.

 

[Cantabrigian]

Originally Posted by Kent Wang

Can't we enlist some currency speculators to help us out here?
It is actually alarmingly easy to trade currencies - and to do so with borrowed money.

There are a number of online brokers that let you do that.

 

[Holdfast]

Why is everything I'm interesting in buying made in the UK or the Continent? I wish there was something made in America I wanted to buy right now, because the exchange rate is just fabulous.

Maybe I should just take a holiday to the States soon instead.

 

[Joel_Cairo]

Originally Posted by Cantabrigian

It is actually alarmingly easy to trade currencies - and to do so with borrowed money.

Indeed:

Thousands of investors have cashed in on Japan's low interest rates"”the lowest in the world"”and the Bank of Japan's reluctance to raise them for fear of deflation. These investors, many of them ordinary Japanese housewives, have managed this through what is known as the "yen-carry trade".

Here's an example of how it works. A Japanese investor"”let's call her Mrs. Nakamura"”borrows yen to buy U.S. treasury bonds. Since the cost of borrowing in Japan is so low, she can make money merely due to the difference between the T-bills' interest rate, somewhere just north of 4.5 percent depending on the maturity date, and the almost negligible rate of interest she pays on her yen loan. Even better, because the yen keeps sliding in value against the dollar, Mrs. Nakamura can sell her T-bills for dollars, buy more yen with them than the amount she orginally borrowed, and pocket the difference. Yatta! (as the Japanese often say when they're celebrating.) For now, it's a win-win investment.

 

[Artisan Fan]

One interesting thing Murray Pearlstein of Louis Boston said to me in 2001 was that he bought Italian goods in Italy with Lira which helped him offer up a better deal on Kiton and Brioni than Neimans. He did have some low prices at the time.

I wonder how much impact this exchange rate has on vendors:

On one hand, people like EG and Lobb must have a luxury customer who may be somewhat insensitive.

On the other hand, those of us less wealthy customers definitely cut back on the total pairs of shoes, etc. we order when the prices spike up...and tourism must also be an important part of sales. With London so expensive, it must hurt Jermyn Street and Savile Row.

 

[Will]

Originally Posted by Artisan Fan

On the other hand, those of us less wealthy customers definitely cut back on the total pairs of shoes, etc. we order when the prices spike up...and tourism must also be an important part of sales. With London so expensive, it must hurt Jermyn Street and Savile Row.

Suppliers on the Row I know have always said their business sees a distinct decline whenever the pound is above $1.80.

 

[aportnoy]

Originally Posted by Will

Suppliers on the Row I know have always said their business sees a distinct decline whenever the pound is above $1.80.

Makes the NYC tailors seem like a relative bargain.

 

[Will]

Originally Posted by aportnoy

Makes the NYC tailors seem like a relative bargain.

Time to travel South of Rome. At least it will be once they re-start garbage pickup.

 

[aportnoy]

Originally Posted by Will

Time to travel South of Rome. At least it will be once they re-start garbage pickup.

Now that's a field trip I can get behind. Does TipTop have a store in Rome?

 

[itsstillmatt]

Originally Posted by aportnoy

Now that's a field trip I can get behind. Does TipTop have a store in Rome?
No, the finest fabric store in Italy is located in Bologna. Vintage fabric galore.