Foreign Exchange Levy
In response to the substantial swings in the Australian dollar experienced post the GFC, Tronics introduced an FX levy that was aimed at ensuring the impact of currency movements on our Videojet consumables pricing was as transparent as possible.
We also wanted to re-assure our customers that the increases necessary at that time would not become a permanent price increase irrespective of future currency movements and indeed, for a period of almost 2 years, the appreciation in the A$ past parity with he USD resulted in a negative levy which benefitted our customers in the form of a discount across the board on all Videojet inkjet consumables purchases.
From January 2015, our FX levy has been set at 7.5% but, significant continued deterioration (more than 13%) in the $A:$USD exchange rate over the past 8 months and it’s impact on the landed cost of your Videojet consumables now dictates that Tronics must increase the applicable FX Levy from October 1st 2015.
Despite a drop of over 13% in the currency, Tronics have been able to somewhat limit the impact via efficiency gains and improved inventory management and as a result, the FX levy will increase by 7.5% to a total of 15%.
It is our commitment to review this additional charge on a regular basis and adjust according to the prevailing exchange rate. Should the A$ move back to a level above 0.90, we will be very happy to once again return the levy to a neutral level.
All of us here at Tronics very much appreciate your understanding of the need for us to implement this change and would like to take this opportunity to thank you for your continued support.