The dollar may have backed off for several months, but it’s back now to a five-month high. Despite the pain for exporters, there are several ways businesses can take advantage of our nation’s valuable currency.
The dollar hit a five-month high yesterday after the Reserve Bank said it wouldn’t cut rates, sending the currency briefly to $US1.06. This morning, it’s backed off to $US1.05.
Exporters are obviously wincing as the dollar remains above parity. But as experts rightly point out, there are plenty of ways businesses can take advantage of the current environment.
There’s more to a higher dollar than just buying cheap books and Blu-Rays.
Here are 10 ways you can take advantage of the higher dollar:
It may not be the best time to lock in contracts, but at least you’ll be guaranteed some stability if the dollar continues to rise. It’s a bit of a gamble, but you may be kicking yourself down the line if you don’t lock in a good rate now. Don’t give up everything to a contract, but give yourself some stability.
Hiring from overseas could be cheaper now, depending where you’re sourcing your staff. Have a look around for some good candidates in a market you hadn’t considered before.
Need to attend a show or conference? Well, head on overseas, because tickets are still cheap – especially if you buy them in advance.
Manufacturing isn’t in the greatest place right now, but if you’re after some raw materials now is the time to do it. You can end up getting some great materials for cheaper prices if you’re willing to look around.
The AdWords system is calculated in American dollars, so you’re better off spending a little more to get more bang for your buck.
Although there have been a few stories recently about the risk of putting your data in the cloud, the fact remains it’s a smart idea to make a backup of your data. And, in any case, you should be using a third-party hosting system anyway if your business is big enough.
Many of these systems are based overseas, and you can gain a significant price advantage if you start looking around for some good deals.
Of course, be careful – putting your data in another jurisdiction can open you up to some interesting laws and regulations if you’re not aware of them.
Ordering uniforms or work-specific clothing from an overseas manufacturer could be cheaper if you need some right now.
Cameras, video cameras and computers – they’re all reducing in price due to the dollar. If you need to snap up a gadget (especially a camera for those online retailers), then looking around online now can get you some great deals.
Don’t bother searching around for tools here. You’re better off looking offshore to get a great deal on plant and equipment, and even more niche, industry-specific tools.
Putting some work offshore could end up being a great economic move if you get the right deal when the dollar is high. If you have some work that could stand to be put offshore, then look around for some good bargains now.
This article first appeared at SmartCompany.