Brexit and impact to businesses who import

[hallion]

Just spoke to a family friend who placed 3 orders to his suppliers in Spain, France and China (Euro and USD) since Friday (yes, I told him he should have done it on Thursday which didn't help). The current crash and value of sterling will have a significant impact to his profit margins but the business will still be viable thankfully. However he mentioned that there is talk of 1 GBP = 1.10 USD or less over the next few months and the Euro being worth more than the pound which would be disastrous for him. Unfortunately increasing his prices would make him noncompetitive compared to other EU and far east sellers so that's not really an option.

Anyone else on the same boat? Can you see sterling really hitting those lows?

[Eric Mc]

Which way did he vote?

[Simpo Two]

When I traded with the EU I quoted the price in GBP and that's what they paid me, so I was happy. The exchange rate and currency conversion was up to them.

Did he order in Euros or GBP?

[trickywoo]

Eric Mc said:

Which way did he vote?

Another helpful comment from Eric.

Ignore him op.

Facts are no one knows. Depending on the scale of the business the exposure could be hedged.

If you really do think parity with dollar is likely it'd be a great opportunity to sell to the us.

[Ean218]

hallion said:

Unfortunately increasing his prices would make him noncompetitive compared to other EU and far east sellers so that's not really an option.

Anyone else on the same boat? Can you see sterling really hitting those lows?

In a similar boat but you are wrong about pricing. He will be able to increase his prices because the same effect will make his EU and Chinese rivals also suffer if they want to sell in the UK.

I have already seen price rises from distributors for product imported into the UK from Germany.