Duration: 00:03:57

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Cashing in on the changing value of currencies
How a Queensland producer of Australian flowers more than tripled its cash profits.

In this podcast:
How to take advantage of global currency movements

  • 00:20 – How Goalseeker maximised the flower grower's profits
  • 01:46 – What was the opportunity?
  • 03:20 – When and where should I sell my product?

Exchange rates are volatile and therefore there are always opportunities to increase your profits.

Goalseeker® takes no currency risks.

The text of the flower grower podcast follows:

  • I’m here again with Dr Richard Allan to discuss how Goalseeker can increase a specific business’s cash flow. Richard, I am a grower of Australian wildflowers. Could your program help me to increase my profits?
As a matter of fact, we had a specific example from the floristry industry a couple of years ago which I’ll call Petalpower. In their case Goalseeker assisted in increasing their profit by over 300%.
  • 300% seems pretty incredible. How did you go about doing that?

I might say at the start that the price of flowers in Yen and Australian Dollars did not change at all. We asked Petalpower what the profit would be and they replied that for every A$100,000 of sales they would make A$20,000.

At the press of a key Goalkeeper gives us is the profit in any currency or country at anytime

In other words Goalseeker makes it crystal clear where the opportunities are to make the greatest Australian Dollar profits. In this particular case it was only the value of the Australian Dollar in terms of the Japanese Yen that provided the greatest opportunity.

  • So what was that opportunity?

In January selling wildflowers to Japan would have produced A$20,000 profit because the exchange rate was A$1.00 = Yen 100 and Petalpower would have to give up 100 Yen to get one Australian Dollar. So 10,000,000 Yen was worth A$100,000.

By July, the weakening Yen meant that they had to give up only 60 years to get one Australian dollar. The sale of 10 million Yen had yielded A$ 100,000 in January for A$20,000 profit. In July the same 10 million Yen was worth A$166,000, yielding a profit of A$86,000.

To continue the example of Petalpower, they also looked at global events that commanded premium prices for flowers. One such event was Mother’s Day in England where the premium on flowers meant that Petalpower could lock in the prices of their three commodities – that is, time, the currency - in this case sterling - and the flower price. As a result their profit went up to A$90,000.

  • So if I can tell Goalseeker I know I can get my flowers ready for market and how much I can make in Australia, you can tell me where and when I could sell my product to maximise my profits?
Yes. We don't make any specific recommendation; we just say “If that is your goal, these are the countries and times which will exceed that goal.
  • Richard Allan, thanks very much.

Quote from this case:

There are always windows of opportunity in a world of volatile exchange rates

DR RICHARD ALLAN