Certain Increase In Essential Oil Prices

[Guest guest]

Howdy Marge,

 

>

> >I could drag this out with a lot more justification for the position I

> >have taken above but I think it might bore folks .. those who accept my

> >position as written won't be shocked to see prices increase world wide

> >and those who don't accept this will accept it .. in time. ;-)

>

> Butch, you neglected to mention two other factors...

>

 

I probably forgot a lot more than two I reckon. ;-)

 

 

> as well as the horrible weather this year both in the UK and on the

> continent... even if the supplies of the oils we want were ample and

> prices held firm... two factors are escalating our costs:

>

> The decline of the dollar.... against almost all currencies. those who

> receive our newsletter have read some of the discussions...and an apology

> for price increases. A month or so ago I brought in something from

> Australia, identical order that I placed last year. The price in

> Australian dollars was identical; the producer had not changed their

> price. but MY actual cost in US dollars was about 58% higher than the

> summer before. The Australian dollar became stronger, the US dollar became

>

> weaker, and transportation costs skyrocketed. Anyone who doesn't count the

>

> cost of transporting what they import as part of their cost for the

> product

> is going to lose their shirt.

>

 

Right you are on the exchange rates .. when I opened my Turkish company I

based my costs on the dollar .. inflation there was high and the dollar was

around 1.75 Lira .. after 8 years it dropped to 1.5 Lira and now its

1.3Lira. That drop did hurt Turkish exports to the USA because even

if they

use the dollar as a pricing tool they must do business in Turkey .. with the

gummit .. in Lira. Meaning both the supplier and I (as the buyer in country

then) could buy more Lira for a buck than can be purchased now .. and now

they must pay more dollars to buy the Lira to cover their expenses.

 

Transportation costs are CRAZY now. In 2001 I was shipping 2 each 40'

containers of a product per month to Puerto Rico .. my cost for the 2 each

40' containers was roughly $4,600. In May 2007, I got the best deal on the

block when I shipped ONE EACH 20' container to the USA .. it cost me

$4,950!

 

 

> People are asking me for bulk quotes on products that I know I CAN

> replace,

> but I'm almost afraid to quote because I have no idea what the replacement

>

> is going to cost me.

>

 

I hear you .. same here. Fact is .. we sold two each oils in 10 kilo sizes

in August and I based the selling price on my previous buying cost .. but

now I have learned that my replacement costs for those two oils are gonna be

around 25% more than I sold them for. :-(

 

As I said in our August newsletter, there are some weeks that I wish we

> sold can openers! (not really!!!)

>

 

I hear you there too. I still like to deal with EO but I'm liking it less

as time passes. I always said that when I like fishing more than I like

dealing in EO .. I'll close shop and go fishing. Well .. right now I

like fishing a lot and come Spring I'm gonna like fishing and gardening a

lot more .. time will tell which direction I go. ;-)

 

 

> Another factor, not a huge cost, but puzzling. We are now paying customs

>

> duty on products that we NEVER paid duty on before. I don't understand it,

>

> but there's nothing I can do about it.

>

 

Many of the duties paid are based on gross value .. including shipping

cost. When I could get Turkish Rose Otto .. aside from the fixed

in-country costs of export .. which were the same for one gram or one metric

ton of goods .. I could ship 50 grams into MD with no duty but 500 grams had

a hefty duty on it.

 

Over 12 years online supplying Aromatherapy and Healthcare Professionals

> Essential Oils, Hydrosols, Accessories, Hard to find Books and Videos

> <http://www.naturesgift.com>

>

 

Y'all have a good one .. Butch .. http://www.AV-AT.com .. who after almost 7

weeks without rain and temperatures averaging over 100 F is now enjoying a

cloudy day with a temperature around 85 F and on and off rain showers since

last night .. forecast to continue for the next 4 days. :-)