The USD has dropped from 0.648 to 0.55 and as such we have got no choice but to immediately increase prices otherwise we will not be able to replace the goods we are selling.
Because we have hundreds of items, to change prices of all of them, we would have to change the individual prices of each product on all our websites and in our invoicing system on Xero. Hence, the way we will put this into affect is a 9% to 17% extra charge on the bottom of all invoices. We will be monitoring the situation daily to see how the New Zealand dollar fluctuates and will be adjusting the price premium to allow for the increase in the currency cost on a daily basis.
Air freight per kilo has greatly increased and is swinging wildly between double and four times the rate prior to coronavirus crises. One kilo of air freight translated into $1.60 p/m on the rates prior to the coronavirus, and now it can be anything from $4-6 p/m. Fortunately we bring in 90% of our goods by sea, and this air freight change will not affect us greatly. We’re in the process of lifting stock levels so we don’t run out as often as we used to when we were ‘filling the gaps’ with air freight.
Any questions please ring the owner Milan on 027 501 0000 or text him to get him to call you back to go over this.