Question with regards to exchange rates and fees
Discussion
Hi guys,
What is standard business practice in this scenario:
Service provider lives in the USA but services predominantly UK clients. She has always quoted and charged in GBP, at around GBP market rates, to compete with UK suppliers. She does not charge by converting what she wants in USD into GBP.
This works fine for years, but suddenly the GBP has tanked.
1) Similar to how airlines charge a fuel surchage, is it alright for her to top-up the fee by an amount to compensate for the currency fluctuation?
2) Or is the service provider expected to absorb the hit of the currency depcreciation?
I know at the end of the day, it's a case of willing-buyer willing-seller, and the bottom line is whether they can agree a price. However, in standard practice, assuming there is no contract but there is a long-standing relationship, would it be considered rude for her to up her fees simply for the reason of currency depreciation?
I guess a similar question would be whether UK expats living in other countries that are paid in Sterling have some kind of right to demand that their employers up their salary to compensate for their relative increase in cost of living in the country of their residence.
Thanks.
What is standard business practice in this scenario:
Service provider lives in the USA but services predominantly UK clients. She has always quoted and charged in GBP, at around GBP market rates, to compete with UK suppliers. She does not charge by converting what she wants in USD into GBP.
This works fine for years, but suddenly the GBP has tanked.
1) Similar to how airlines charge a fuel surchage, is it alright for her to top-up the fee by an amount to compensate for the currency fluctuation?
2) Or is the service provider expected to absorb the hit of the currency depcreciation?
I know at the end of the day, it's a case of willing-buyer willing-seller, and the bottom line is whether they can agree a price. However, in standard practice, assuming there is no contract but there is a long-standing relationship, would it be considered rude for her to up her fees simply for the reason of currency depreciation?
I guess a similar question would be whether UK expats living in other countries that are paid in Sterling have some kind of right to demand that their employers up their salary to compensate for their relative increase in cost of living in the country of their residence.
Thanks.
Gassing Station | Business | Top of Page | What's New | My Stuff