MirkoBoeddecker
Monday, 16 March 2015
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<div style="margin:0px 0px 25px;">European Trade and Retail Pricing Update
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<div style="font-family:Helvetica;font-size:12px;">As international exchange rates tend to fluctuate, we are working hard to maintain an affordable retail price for CineStill film internationally. Our goal has always been to keep our product available anywhere in the world for around $9.99 USD per roll. In recent months, the euro has undergone some drastic changes, benefiting European exports but causing concern for imports. The Euro is now approaching parity with the US Dollar, resulting in a price increase in Euros for all products coming from the US and elsewhere throughout the world. This has caused a difficult problem for us since, in order to offset this price increase in Euros, manufacturing and importer margins have begun to shrink to the point beyond sustainability. Even when we cut our margins, reducing the cost of our products in USD for European distribution, exchange rates have made it impossible to avoid some sort of price increase in Euro markets.€
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In order to continue international distribution throughout Europe, a small increase in the recommended retail price (MSRP) in Euros will be applied to all future CineStill Film sales, easing the burden on trade. At current exchange rates, an MSRP of $9.99 USD would now be equivalent to €9.50 plus VAT. To alleviate this price burden for our customers, we are reducing our margins as much as possible to allow for a new European MSRP of €8.40 (up to €9.99 including sales tax), resulting in a saving of approximately €1.10 for the European consumer. This offsets the loss of margins and the rise in the exchange rate almost exactly halfway.€
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Experts expect parity between the euro and the US dollar to be reached later in 2015, if trends continue. Parity between the euro and the US dollar means that the exchange rate is expected to settle at $1 to €1, so that a roll of 800T should cost the same at $9.99 USD or €9.99 EUR. If this is the case, a second price increase in euros could come in late 2015. For now, our European customers can expect to find CineStill 35mm films available at or below an MSRP of €8.40 (up to €9.99 including VAT) at their local retailer.€
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If CineStill Film is not available at your local shop, please ask them to contact us or any of our distributors via our website to enquire about becoming a CineStill Film dealer!
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In short: Due to the current depreciation of the euro against other currencies over the last 12 months (a fall of around 35%), the manufacturer’s and retailer’s margins on CineStill film have not only been eroded, they have actually been negative in recent weeks. CineStill must therefore implement a price adjustment. As the depreciation of the currency in international terms is not the same as inflation (and is not offset by corresponding increases in purchasing power), this means a real price increase per film for European consumers. Together with CineStill, we are trying to keep this effect as low as possible and are temporarily waiving our retail margin, whilst CineStill is waiving its manufacturer’s margin. This has allowed us to significantly cushion the necessary price increase, so we are not raising the price by 35% but only to €8.40 per film (plus applicable VAT). Should the euro fail to recover or even fall further, we may have to implement a further price adjustment in the summer.
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Best regards,
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Mirko
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MirkoBoeddecker
Just a quick note on this: Kodak has increased all prices by around 15% as of 1 March. We and other retailers have stocked up as much as we can, so you won’t notice any difference just yet. Anyone planning a major project involving materials manufactured outside the eurozone (e.g. in the UK, the US or the Czech Republic) should perhaps consider buying now. All these manufacturers will have to adjust their prices. No one can absorb a 35% exchange rate loss from ‘the margin’ in the medium or long term.
