website is a manual website and the rates mentioned on this website
infront of so many styles were updated one by one over the past
years. Now with the passage of time there have been increases in
raw materials, labour and various other things which lead to the
increase in rates and since this website is not self automated through
a database at this time, and it being difficult to update the rate
of each and every style, we imposed this system.
the surcharge is composed of 2 charges
Rate increament: THe rate increament is the increase in raw material,
labour running costs etc
Currency surcharge: Below is an attempt from us to explain in basic
the currency conversion and why we have imposed a mechanism of currency
conversion surcharge and how it impacts our international business.
The explaination is for a lay-man. If you want a more precise definition/
explaination, please search at live.com, google.com or any other
What is currency conversion?
- For example, we(suppliers) in India have our native currency INR
(Indian National Rupees)and say for example you being a buyer are
in US and your currency in your country is USD (United states Dollars).
Now the USD trades(exchanges) with INR (exchange rate) at some particular
rate say 1 USD = 45.00 INR at some particular time/ date. But it
is not always that 1USD will convert in the international market
to 45 INR at all times. At times this rate increases or decreases.
1 USD could give you 40 INR and at times it could give you 50 INR,
What is currency conversion surcharge and why
is it imposed?
- The rates mentioned on this website were uploaded around Nov 2006.
Since that time the USD has fluctuated to the actual rate of 1 USD=45
INR approximately to 1 USD= 40 INR which is a fall of around 12%.
Now we are producing a particular item and have a selling price
of the same over here Ex works of say for example INR 90.00. Now
earliar when 1 USD was = 45 INR we charged USD2.00 however now we
have to ask for more as we get only INR 80 when you (US buyer) will
pay only $2.00
Further the rates on the website are in USD and in order to make
it equal to our INR we will have to keep changing it regularly so
that we get the right amount when you pay in foreign currency. Though
for small fluctuations we absorb the losses, however for any major
fluctuations we have to adjust then. Hence rather than changing
it again and again on the website, we have introduced a currency
surcharge mechanism where we will simply add the persentage to the
cost by which dollar has fallen at that time from 1 USd =45INR.
[Note: We uploaded the rates when 1.00USD =45.00 INR]
Why this currency conversion surcharge, why
not change/update the rates regularly?
-Our website is all manual till today (28-Jun-07) like most of our
products and it is difficult to change the rates of all items regularly
coping up with the fluctuations of INR with USD every now and then,
moreover its also better for the buyers(you) to see one base rate
that does not change and then add a persentage everytime when there
is a currency conversion fluctuation.
SURCHARGE= Rate increament + Currency Surcharge (for this website)
More queries? Please write to us at firstname.lastname@example.org