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.
How a Queensland producer of Australian flowers more than tripled its cash profits.
In this podcast:
How to take advantage of global currency movements
How to take advantage of global currency movements
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 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.
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.
Quote from this case:
There are always windows of opportunity in a world of volatile exchange rates