RE: Zenos lives on
Discussion
ads_green said:
Just want reiterate I wasn't blaming brexit. I'm just say the drop in the pound doesn't magically make all exporters happy to the same degree.
Consider a product like zenos sold for export will often be via an third party sales network. Let's say ABC autos in new York sell zenos cars as a registered dealer. They will but the car pounds so no magic profit there for zenos but sell in dollars - they often will not say 'we can pass on all savings to the customer'... when have you ever seen a dealer like this? No - they will keep the price the same in the local market as demand will be the same and they will pocket easy money.
It's not just cars - look at phones, electricity, gas... when the pound was incredibly strong did prices tumble in the Apple shop? no.
This is even before we get to substitution effects. Let's say somebody had 60k dollars to spend and looking at a zenos... prices fall due to exchange rate and now that 70k lotus is now now 60k... the customer still has and wants to spend 60k but will they take the savings on one car or potentially go for something previously unattainable?
My point is that to say (and I am saying this as somebody who manufactures, assembles and exports stuff) 20% drop in exchange rate means 20% more profit is beyond simplistic. If only economics were that simple then perhaps I would not have had to work so hard during my degree.
After Tunapants gave your last long winded post a fantastic HMS Victory style broadside, you are now resorting to obfuscation and some wierd theories. OOOOOO its so complicated for us without an economics degree. Nope.Consider a product like zenos sold for export will often be via an third party sales network. Let's say ABC autos in new York sell zenos cars as a registered dealer. They will but the car pounds so no magic profit there for zenos but sell in dollars - they often will not say 'we can pass on all savings to the customer'... when have you ever seen a dealer like this? No - they will keep the price the same in the local market as demand will be the same and they will pocket easy money.
It's not just cars - look at phones, electricity, gas... when the pound was incredibly strong did prices tumble in the Apple shop? no.
This is even before we get to substitution effects. Let's say somebody had 60k dollars to spend and looking at a zenos... prices fall due to exchange rate and now that 70k lotus is now now 60k... the customer still has and wants to spend 60k but will they take the savings on one car or potentially go for something previously unattainable?
My point is that to say (and I am saying this as somebody who manufactures, assembles and exports stuff) 20% drop in exchange rate means 20% more profit is beyond simplistic. If only economics were that simple then perhaps I would not have had to work so hard during my degree.
Your initially tripe encrusted response was it was "crappy to have a lower pound".
Said no exporter ever.
Anyway good luck to the new owners and employees
Hugh Jarse said:
ads_green said:
Tuna said:
Was it established why the export orders were cancelled? The last few months' changes in exchange rates have been very favourable for exporting.
Unless you import any raw materials or components (or your suppliers do) then it's crappy.
ks. Do some maths.
Car 100%.
Imported components 25%.
75% exchange win.
(Simplified)
rockin said:
Apart from turning out a few ancient and expensive Cobras they've not done much at all. Here's a few, all of which remain determinedly invisible,
AC ACE V8 (Brookland)- AC 3000 ME - supposedly a mid-engined Lotus Esprit competitor.
- AC Brooklands Ace - 1990s convertible with Ford Mustang mechanicals. Looked like a giant MX5.
- AC 378 Zagato - modern sportscar with Corvette C6 mechanicals. Allegedly on sale since 2012.
My determined to be visible 'GIANT MX5'
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