bicks

After the Sterling drop and it's uncertainty for the short to mid-term foreseeable, should I continue to advertise my business prices in sterling, or 100% switch them to Euros? Or give the option?


Any suggestions would be amazing

EuroTrash

That seems a rather crucial business decision, does it not, to be delegating to folk who don't know the first thing about your business model...

But if you're targeting Brits, I guess they would prefer £. What you choose to do/can afford to do about the fluctuations is another question. If you give them the option of £ or €, you'll either have to stay on top of the exchange rate and keep adjusting the prices day to day - which people won't like if they look at the prices one day, go back to book a couple of days later and discover the price in their currency has gone up; or if you don't adjust the prices to follow the exchange rate, you'll take a hit from people who can pay in either currency and who will obviously choose the best deal for them/worse deal for you.

graham.miln

For our customers buying software, we offer 3 currencies <snip>. It makes our accounting and business more complex but our customers like the certainty and ability to get fixed price quotes.

What currencies do you accept for payment? Does your business operate in EUR for banking and accounting purposes?

This season, you may want to distance your business from the volatility of the GBP/EUR exchange rate and charge in the business's operating currency.

Ultimately much will depend on your customers' preference or willingness to deal in non-local currencies.

petitefrancaise

The business will be run in € - that is what is reported to the french tax authorities.

Your customers are going to want to pay in £ aren't they? Otherwise you are passing on the risk to them instead of you taking it.

In another thread, a poster asked about spot/future trading in currencies. You could do worse than try to lock in your exchange rate for the next 6 months although the rate you get now will be less than stellar and may not be possible.

What is your payment system?

eddfisher

How long do you have to wait between taking money from your customers, and then paying your suppliers? How tight are your margins?

If you are offering super low budget holidays with a tiny margin, then it is more acceptable to offer prices in Euros, as customers often don't mind dealing with a little awkwardness when something is great value.

If you are offering luxury holidays, I would expect your margins to be bigger, but also your level of service to be higher, thus it would be more fitting to offer prices in £GBP.

If you decide that you are going to price in £GBP but currency fluctuations could really hurt your business, you can insure against them, though obviously for a cost.

bicks

Depends on what online service they book with.
If a direct booking then we take full payment 2-3 weeks beforehand, with a deposit 6 months before.

We're not quite luxury holiday offering just yet.

I didn't know you can insure for currency fluctuation! THanks for that.


On yet another brexit note..
Just thinking a few years down the line (or sooner!)

Can article 50 inhibit in any way, UK registered businesses operating in European countries and towards European audiences and trading in Euros?