This is something I've been thinking about for a while now. All of my payments are made to me in US Dollars, and being in England, whenever I transfer my funds to my bank account, the money is being exchanged to the British pound. I've noticed recently a slight strengthening of the US dollar against the pound. SO far it's nothing to worry about, but I am abundantly aware that if the dollar strengthens by ten percent, my pay will drop by ten percent! Has anyone on here been doing this long enough that they have had problems with this in the past? I'm just wondering if the best thing to do is to approach current clients suggesting a pay rise, if/when the exchange rate really goes out of favour to me, or is this something that we just have to take on the chin? Obviously it is different for lots of people, but I presume that the same problem could potentially occur for anyone who is not in the US. Looking forward to your comments
I've run into it a little with European clients. The irony is my US dollar rates became something of a bargain compared to European writers charging in Euros. Made me wonder if I should have been charging European clients a higher rate. Seems like if you price based on fluctuating currencies, it should go up as well as down. I suppose you could slowly increase your rates with existing customers and perhaps charge 15% more for new ones? On the other hand, I suppose most large retailers facing a similar issue would simply raise prices. If the currency were to return to earlier values, it would also seem they would simply continue charging the higher prices or offer discounts and sales to bring prices back down without changing the actual new higher book price.
Yeah that seems to make sense to me. I guess it is just a little bit difficult to approach clients that you have been working with for a long time and suddenly ask for more money! On the other hand, maybe by the time the rates change to an extent where it matters, I will be due a pay rise anyway! Ironically two of my main clients both pay me in dollars but are both based in the UK! I think they get paid in dollars though so...
Had a second thought...perhaps one price for clients paying in Pounds and another for clients paying in US Dollars? Not as user friendly but puts the decision in their hands. Can you get the UK folks to switch to Pounds?
And do you have to say anything anyway? Don't your rates go up or down per project anyway? So, why not just add on that very small extra charge, if need be???
No actually my two clients in England that pay me in Dollars both pay me a flat rate. I win some, I lose some! It's a good rate for what I do for them most of the itme so I don't quibble when something different turns up. I just don't want that good rate to get eaten away by the exchange rate if it changes too much. I think of course it is something you can factor into your normal structure, and make the adjustments necessary, but while you are merely maintaining your level of income, it looks to the buyer that you are increasing it. What does he/she care if the exchange rate is changing - it's not their problem! I don't know it's a tricky one. I guess it's not that critical until such time anyway but it's good to hear what people think about it
A pay rise? That's a novel concept when employers of writers are constantly forcing prices down to practically nothing. If you're living in a country outside of the US, foreign exchange is something you just have to live with. If you're living in countries like India or the Phillipines, foreign exchange works in your favor, of course. As long as your country's currency is weaker than the US$, you're okay.
I sometimes get payment in GBP, that goes to Paypal, which saves them in USD and eventually I have to convert them to Rupees to use in India. GBP was 80 when I started business 18 months ago, its 72 now. Tell me about exchange losses. BTW you will never loose out ten percent, that'll be a financial disaster for US if dollar breaks down that much against the pound. You'd be fine.