Dollar vs Yen

[LMTC]

Just a general "heads-up" to anyone currently shopping. The used tractor market has been relatively immune to the steel price increases of the past several years, which have profoundly affected new tractors and implements. However, the used Japanese tracor market is very subject to the valuation of the dollar against the yen. Within the last year the dollar has lost app. 18% against the yen. This means anything bought from Japan with dollars is now costing 18% more dollars than it used to. That is certainly beyond our margin, and probably beyond the margin of most reputable sellers. It would not surprise me to see dealers start raising prices as more inventory is being purchased for spring. I know we will have to do so.

 

[tnbowhunter]

That's exactly why I recently purchased my tractor.
1. Rising steel costs.
2. Spring time almost always brings higher tractor prices vs the Winter season.

I didn't really need a new tractor now, but knew I would need one when the weather warms.

 

[runningbird]

yep, your right on this one....

 

[js5020]

Yep, current spot price at this VERY moment 98.26, and could possibly fall even further.

 

[YanmarFever]

We wired $$ to Japan yesterday for a container, what a surprise that was !!

Our prices will be a little higher for our next batch of yanmars, thats for sure.

 

[jk96]

LMTC,

I'm in the fireworks industry and even though the Chinese govt. doesn't let the RMB float freely, the dollar has even devalued against the RMB. Prices out of China are being affected as well as a result and I'm afraid will soon affect "everything" we buy since there is alot more coming from China than Japan. On another note - the cost of steel buildings are going up quickly as many U.S. made buildings are now getting shipped to Canada due to the exchange rate making them cheaper. **good for U.S. mfg. though.

jk

 

[MJPetersen]

For those of us living overseas the drop in the value of the dollar has really crippled our activities. My spendable income dropped 48% here in the last 4 years. The exchange rate charts look like the cartoon growth charts with the line falling off the chart and going down the wall. Heh, but there is Nothing that I can do about it, I am not in control, so we just keep pushing ahead.

As the devaluation of the dollar starts impacting new inventory purchases in almost every section, we will see price increases for those living on USD.

Mike

 

[Tom_Veatch]

One would think that the devaluation of the USD against other currencies would make US products more attractive pricewise to foreign markets. But, with much of our manufacturing capability being exported and our economy becoming more and more service oriented, there doesn't seem to be much upside in the dollar devaluation.

 

[MJPetersen]

It does in some ways. I know of a printer here who is checking in the States to find a piece of equipment that he wants. He can buy the equipment and ship it here for less than buying here, because of the weak dollar.

I would think that with the dollar such as it is that all the imported goods are going to be increasing--tools and electronics included.

Mike

 

[DarinRay]

Been putting off doing wires for a couple weeks figurign it would march back up to 107 at least. Well good thing I'm not a broker because I would be BROKE in a hurry with my logic. Come on dollar!

Darin

 

[mcnitt]

This whole worldwide, and especially U.S., fiscal circumstance should underscore the importance of being free of consumer debt. Maybe it's not possible for most people, but we can all make good decisions to put off an expenditure until we can pay for it in full and avoid the costs associated with debt. Cut up those department store and oil company crdit cards!

 

[Tom_Veatch]

... Cut up those department store and oil company crdit cards!

AMEN!!!

Have had zero long term debt since burning the home mortgage papers about 10 years ago, and can't remember ever letting a credit card balance roll over to the next month - certainly not within the last 25 years.

Being free of debt load does wonders for your attitude, temperament, outlook, and even your health. I heartily recommend it. May require a little self discipline, but consider that there are a lot of folks that get along quite well without whatever that is you're about to saddle yourself with debt 'cause you've just got to have it.

 

[ProdaddyTX]

Yep, it's a painful situation on a lot of levels. We're going to have to raise our tractor prices in the next couple of weeks.