Monday, March 16, 2015

European Trade and Retail Pricing Update

As international currency 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 currency has undergone some drastic changes to the benefit of European exports and dismay of imports. The Euro is now approaching parity with the US Dollar, resulting in a Euro price increase 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. 

In order to continue international distribution throughout Europe, a small increase in suggested Euro retail pricing (MSRP) will be applied to all future CineStill Film sales, easing the burden on trade. With current exchange rates, an MSRP of $9.99 USD would be now equal to €9,50 EUR plus VAT. To ease 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 EUR (up to €9,99 including sales tax), resulting a savings of approximately €1,10 EUR to the European consumer. This meets the loss of margins and currency exchange rate increase at just about the halfway point. 

Experts expect parity to be reached between the Euro and USD later in 2015, if trends hold. Parity between the Euro and USD means that the exchange of the US Dollar and the Euro is expected to settle at $1 to €1, so that roll of 800T should fall equal at $9.99 USD or €9,99 EUR. If this is the case, a second Euro price increase 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 EUR (up to €9,99 including sales tax) at their local retailer. 

If CineStill Film is not available at your local shop, please have them contact us or any one of our distributors through our web site to inquire about how to become a CineStill Film dealer!

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