The strength of the US Dollar of late has resulted in wide-ranging effects on many markets, including the worldwide market for classic tackle.
International buyers of US Dollar denominated assets have recently been faced with rising acquisition costs. As little as two and a half years ago, a $2,000 bamboo rod would have cost one of our Japanese customers 160,000 Yen, or 200,000 Yen as recently as last summer. Now that same $2,000 rod sets our customer back 240,000 Yen. It seems natural that we have seen less buying from our wide base of Japanese clients as a result. The same basic example in currency economics applies to our European client base, and even our neighbors in Canada.
As a result of this dramatic shift in currency values in a worldwide market such as ours, one would think that overall values would adjust downward in order to somewhat balance the worldwide supply and demand equation. While this may be true in many segments of our market, in others values have remained constant, and in more rare cases, value have continued to climb.
On the flip side of the coin, some of our international customers have begun to recognize a key BENEFIT of this currency movement, which is having Vintage Fly Tackle sell some of their classic tackle through our worldwide consignment program. The same Japanese customer who paid 160,000 Yen not too long ago for a $2,000 bamboo rod, can now have VFT generate 240,000 Yen, via selling the consignment rod in USD to another of our customers, here in the US or abroad (less our competitive commission rate of course).
Because of this, we have seen increasing volumes of consignments being shipped to us from our overseas customers. We encourage our international customers to consider this. If you have any questions about our consignment program, please contact us at your convenience.
We also continue to selectively discount our inventory items from time to time as well in order to balance out the effects of worldwide currency market movements and other supply/demand considerations.
We would love to hear your comments as well, if you are so inclined to leave them here.