With the exchange rate fluctuating on a daily basis, how can I ensure a comfortable deal for the customers and myself?
No genius in the world can predict at what exchange rate (INR >< US$) rate the end customer is going to get his Credit Card bill as this fluctuates by the minute. So to play safe, you must ensure that, no matter what happens, the end customer should not see any amount over US$10/- on his Credit Card billing statement. For this, you need to work with a benchmark. Let's assume, the US$ rate today for INR is INR 48.50 = US$ 1. You should take a benchmark of INR 48.0 = US$ 1. Which means that even if the clients' bank is actually using the exchange rate INR is INR 48.50 = US$1, the client will only be billed US$9.89; as against US$10/- which he agreed to pay you. (This is arrived at by US$10 x 48.0 = INR 480/48.5 = 9.89) To ensure the best deal for both you and the customer, you will have to regularly monitor the INR >< US$ rate of exchange, and maintain an optimum difference parameter. While small corrections in the exchange rate do not affect your customer's price negatively, you must al
Related Questions
- How do we develop our budget with a widely fluctuating exchange rate, to ensure that we have sufficient money to perform the contract?
- With the exchange rate fluctuating on a daily basis, how can I ensure a comfortable deal for the customers and myself?
- What is Crayola doing to ensure its products made in China are safe for our customers?
