What Currency

Posted on November 14, 2007
Filed Under Uncategorized | | Written by Gary Reid

It’s always been a foregone conclusion that the currency you charge will be US Dollars.

But the Dollar is so weak it’s getting to the point where it’s just crazy.

Seven years ago, when I first started an online business the exchange rate (Dollar/Pound) was around $1.40, today it’s around $2.08

You don’t need to be a genius to see the huge difference and just how weak the Dollar has become.

But, it’s even worse if you do some real maths on it.

If you sold something for $1000 in 2000 it converted to around Â£714, today it would convert to Â£480 that’s a difference of Â£234 or in todays dollar value $486 - so if you still wanted your Â£714 you would now have to charge $1486 just to stand still.

The problem however is that USA citizens expect to see and pay in Dollars, so if you are going to charge in a local currency you have to factor in how many sales will be lost.