US Currency Strength / Rossi 92

[ilikerugers]

In January 2013, the US Dollar / Brazilian Real ratio was about 2:1. With the US Dollar having been on a tear (and the Real weakening), today the USD/BRL is 3.8:1, nearly double. Why hasn't the price of a Rossi 92 been cut in half?

[Steve_In_29]

A: Because that's not how business works.

B: Because Braztech likes making a bigger profit and their weapons are priced low enough that they really don't need any further inducement for Americans to buy them.

[TS77]

Also keep in mind the exchange rate cuts both ways....anything being imported into Brazil would effectively be more expensive as well, I'm sure at least SOME of the raw materials for their guns come from out of country

[Oldmandan]

They cannot be raising and lowering prices every week to coincide with exchange rates... they release new pricing once a year or every couple years to their WD's.

Imagine the cluster-F stores would have to deal with if wholesale pricing fluctuated drastically every week. They could have 2 of the same gun, bought at different times, each of which would have a different cost, and retail price. What a mess that would be...

[thetaxman]

And of course if it went the other way you would be fine paying twice as much?

FOREX on the balance sheet is either a gain or loss and is just life for any international business. You can hedge against it and many do - much in the same way airlines use futures contracts for jet fuel.

[ilikerugers]

China surprised the world by unexpectedly devaluing its currency last month and the widespread concern is it would boost China's domestic industries and boost Chinese exports because of the lower prices that would be offered to the consumer.

Brazil's currency is already devalued, but there has been no indication of that in the retail price of a Rossi 92. The way to manage reduced prices at the store level would be by hosting promotional sale events off MSRP, no different than any other specialty retailer.

My conclusion is that there's not enough competition in the 1892 segment of the market. Rossi continues to exploit the opportunity created by Winchester moving upstream and Marlin imploding.

[Steve_In_29]

So let me get this straight...you are complaining that one of the cheapest guns in the lever action spectrum is still TOO EXPENSIVE for you?

[ilikerugers]

So let me get this straight...you are complaining that one of the cheapest guns in the lever action spectrum is still TOO EXPENSIVE for you?

Absolutely. The reason is because value is relative, not absolute. If the dollar has doubled in relative value, we should be paying half as much for a Brazilian-made product.

I bet if Mossberg began offering 1892 replicas for $400 (the price point you can buy their .30-30s), Rossi would undercut them through sales promotions and profitably sell their 92s for $350.

[colossians323]

OP.................don't be a Rossi hater

[barrage]

I love my Rossi 92. Shoots factory 38 special and 357 magnums as well as my reloaded 357 magnums all day long. Great rifle and a great little truck gun.

Just remember, the Nazis made some great weapons, and so do those Socialist, Nazi living Brazilians. Just because they're *******s doesn't mean you aren't allowed to like their guns.

[Steve_In_29]

Absolutely. The reason is because value is relative, not absolute. If the dollar has doubled in relative value, we should be paying half as much for a Brazilian-made product.

I bet if Mossberg began offering 1892 replicas for $400 (the price point you can buy their .30-30s), Rossi would undercut them through sales promotions and profitably sell their 92s for $350.

So why aren't you complaining about Mossberg then?

Plus I paid less then $350 for my Rossi 92 at Big5.

[Ronin2]

China surprised the world by unexpectedly devaluing its currency last month and the widespread concern is it would boost China's domestic industries and boost Chinese exports because of the lower prices that would be offered to the consumer.

WRONG. Lower prices offered to The "Importer of Chinese made goods may or MAY NOT be passed on to the end consumer, at the discretion of the importer, not the manufacturer.

Brazil's currency is already devalued, but there has been no indication of that in the retail price of a Rossi 92. The way to manage reduced prices at the store level would be by hosting promotional sale events off MSRP, no different than any other specialty retailer.

You are free to go ahead and buy a store and do if you can. There is no indication that Rossi products are being sold by the Brazilian manufacturer at lower prices. In fact we have no way of knowing if the importer of Rossi products has a fixed price/rate multi year contract that would have protected it from upward fluctuations in exchange rates and conversely, keeps it from benefiting from downward movements in exchange rates.

My conclusion is that there's not enough competition in the 1892 segment of the market. Rossi continues to exploit the opportunity created by Winchester moving upstream and Marlin imploding.

Well I guess ya gotta "pay to play then Pilgrim"....

In January 2013, the US Dollar / Brazilian Real ratio was about 2:1. With the US Dollar having been on a tear (and the Real weakening), today the USD/BRL is 3.8:1, nearly double. Why hasn't the price of a Rossi 92 been cut in half?

Absolutely. The reason is because value is relative, not absolute. If the dollar has doubled in relative value, we should be paying half as much for a Brazilian-made product.

I bet if Mossberg began offering 1892 replicas for $400 (the price point you can buy their .30-30s), Rossi would undercut them through sales promotions and profitably sell their 92s for $350.

Maybe you should just stick with "ruger"...it sounds like you are not "Rossi" material

I just bought a NIB unfired Rossi 92 in .44 mag listed in the CalGuns classifieds from another Calgunner and paid $400 out the door and Im quite happy that it was a fair deal.

[AreWeFree]

China surprised the world by unexpectedly devaluing its currency last month and the widespread concern is it would boost China's domestic industries and boost Chinese exports because of the lower prices that would be offered to the consumer.
...

China has been illegally devaluing it's currency for the export market since the beginning of "free trade," it's one of their standard practices.

[smle-man]

Absolutely. The reason is because value is relative, not absolute. If the dollar has doubled in relative value, we should be paying half as much for a Brazilian-made product.

I bet if Mossberg began offering 1892 replicas for $400 (the price point you can buy their .30-30s), Rossi would undercut them through sales promotions and profitably sell their 92s for $350.

Rossi has to price their guns based on the cost of materials purchased over a year ago when the exchange rate was different. They are in the business of making money. They aren't going to give anything away. They can sell every 92 imported to the U.S. very quickly at the current pricing schedule. Also consider the cost of the U.S. overhead, taxes, shipping and warehousing within the U.S, etc. All of that continues to be priced in U.S. dollars as always.

I recommend a couple of classes on macro-economics and manufacturing economics to understand why Rossi doesn't change its prices every time the dollar fluctuates.

[toby]

Uberti makes a nicer rifle.