A few minutes with Pyers Easton, Raycom

Sky, ITV, the BBC and big budget films are just a few of the beneficiaries of the sophisticated audio solutions provided by Worcestershire business – and Smart Currency client – Raycom.

The company, which is headed by Pyers Easton specialises in supplying audio - particularly wireless - solutions to the broadcast and entertainment industries. As well as providing the latest and most sophisticated audio products on the market, Raycom also offers extensive consultancy support – matching cutting edge systems to unique client requirements.

The company has been in business since 1984. “We’re currently working on a large contract for a major international motor racing series,” says Pyers. “The product has to be absolutely right. This type of coverage is very complex and the audio systems we provide will be travelling around the world. Our solution has to be resilient and fit for purpose. We specialise in building the right systems for unusual, complex tasks.”

Foreign Exchange Issues
The vast majority of the products provided by Raycom come from abroad – predominantly the USA, Italy and Switzerland. The company is operating in a small but highly specialised market.

Pyers says: “I was already using a foreign exchange supplier when Smart Currency contacted me. What they offered was simply too good to refuse in terms of their rates compared to my existing supplier. Smart also offered free transfers where before I had been paying £15 for each one.”

Pyers says his business buys in over £1m of equipment each year from abroad. “Even fractions of a per cent can make a huge difference to the business,” he says. The business regularly negotiates forward contracts through Smart. “It means that when I negotiate a contract with a customer I can quote them a price based on the assumption that the exchange rate cannot get any worse,” he says.

Personal service
Pyers suggests that the main benefit of using Smart is the seamless nature of the service it provides. “I can call Smart, have a conversation that lasts for less than two minutes, and within a minute of putting the phone down, I receive a contract note from Smart. The whole transaction is complete within an hour. It is a completely painless process – and that is how I think it should be. I need to be spending my time selling – not ringing around negotiating currency rates. Smart really is one of the most professional firms I have ever dealt with.”

So, would Pyers ever be tempted to use another foreign exchange supplier? He answers: “I can’t really imagine what would tempt me as the rate I am getting with Smart is simply so close to the inter-bank rate. Interestingly, I had a call from my previous FX supplier who asked me what rate I was getting now. He said he would go away and see what he could do in terms of matching Smart.” And? “He never came back,” says Pyers.

For more information on Smart Currency Business call: 0845 638 0571 (or +44 (0)207 898 0541 from outside the UK) or visit our website at: SmartCurrencyBusiness.com

Trouble for exporters as sterling hits sixteen-month high against euro

A strong end to a difficult year saw sterling hit €1.20 in December for the first time in 2011, an upturn which continued at the beginning of 2012, with sterling breaking €1.21 for the first time in 16 months on January 5th.

Although a 16–month high may seem like good news, it can bring difficulties for British companies who are exporting to the Eurozone. If a British company offered £10,000 of materials on October 30th, this would have cost a French company €11,337. Just ten weeks later, on January 9th, the same £10,000 invoice would’ve cost our French company €12,158. That’s a 7% increase in price, simply because of the fluctuations in the currency market.

Many companies initially took the sanguine view that “no one knows where the markets are going so there’s no point in worrying about it – we’ll just take whatever rate is offered at the time”.

There is an element of truth in this – predicting the movement in the market can be difficult, even for the experts – but there are also many ways that currency specialists can limit the effects of these changes.

One such example used at Smart Currency Exchange is a forward contract, where a company pays a small deposit (typically 10% or less) to guarantee an exchange rate in advance of needing the full amount. When the invoice needs to be settled, the company pays the rest of the money and gets the foreign currency at the agreed rate, regardless of what’s happened to the exchange rate in the meantime.

For more information on Smart Currency Business call: 0845 638 0571 (or +44 (0)207 898 0541 from outside the UK) or visit our website at: SmartCurrencyBusiness.com

Ten Tips For Going Global

Carl Hasty, head of trading with Smart Currency Exchange offers ten reasons why UK businesses should consider going global in 2012.

The UK economy is stagnant.
The Office for Budget Responsibility (OBR) predicts the UK economy will grow by just 0.7 per cent in 2012 – and not much faster in the following years. Growth in 2011 was less than one per cent. We might not be in recession but things are pretty benign in the domestic economy. Now, surely then, is the time to look abroad for growth. While much of Europe may also be floundering, by broadening your net you are far more likely to find demand for your products. Moreover, some parts of the world – most notably the likes of China and India but also less talked about places such as Turkey, Singapore and Qatar – are experiencing solid growth.


A hedge against global uncertainty.
The world is an uncertain place right now. Nobody knows quite what will happen to the global economy as problems in the eurozone continue to fester. Another global recession? A 1930s style Depression? A return to growth? It really is anybody’s guess. Against such a backdrop it’s surely prudent to have your eggs in more than one basket. Depending on just one market for your business right now could prove costly.


Boost employee engagement.
Motivated, engaged employees are a must-have right now. There are a whole host of initiatives that businesses can introduce to improve employee engagement. Going global is one of them. The process of heading into international markets can often reinvigorate employees and boost their motivation. Get them involved – whether it be researching target markets or overseeing an e-commerce facility on your website. The prospect of international travel with work is also a huge positive for many people, enhancing their skills while boosting their career development.


World class support available.
UK Governments have gone to great lengths to back UK exporters in recent years. UK Trade and Investment (UKTI), the main support mechanism for exporters, has 2,400 staff and a presence in 96 countries. It can help in many areas – from providing market intelligence to offering advice on business regulations and legal issues in target markets through to overseas trade missions. Other, private business bodies – such as the British Chambers of Commerce network and the CBI – also offer great support for exporters, including trade missions, seminars and networking opportunities.


Researching foreign markets is much easier.
In days gone by, researching international markets was a minefield. Time-consuming and costly, it often involved lots of foreign travel – much of it wasted and a drain on precious resources. The Internet has changed that. While there are cases when a trip abroad to a target market is essential, much of the ground and preparatory work can now be carried out via the web.


The pound is still relatively weak.
Many UK exporters have taken advantage of a weak pound in recent years, in particularly gaining a trading advantage against countries operating within the over-valued euro. While the euro may now be weakening in against the pound, there are many who believe sterling is still undervalued – representing an opportunity exporters need to grab now.


Gearing up to trade globally.
Speak to any experienced exporter and they will invariably tell you that the process of preparing to trade internationally has had a positive impact on their business. Systems have to be fine-tuned and marketing sharpened. The global market is no place for shoddily run outfits. Going global can act as a catalyst for your business to step up a gear – with knock on benefits for your domestic market.


The world is a smaller place.
Communications technology is having a huge impact on international trading partnerships. While face to face might be required to close out a deal, technologies such as video conferencing and Skype mean it’s now possible to maintain healthy relationships with clients on the other side of the world without having to travel abroad. With communications technology improving daily, foreign travel costs can be kept to a minimum.


Your competitors are doing it.
And if they are not, they soon will be. More and more UK companies are looking at exporting as an option, due in large part to the benefits outlined above. Those that succeed in their endeavours are likely to be more competitive domestically as a result. By sticking to domestic markets, your business risks be left behind by the competition.


And finally...
Many businesses worry about foreign exchange when trading abroad. Will the volatile international exchange rates we have been seeing impact on profits? Will commissions on foreign exchange be costly? The good news is that foreign exchange is something you don’t need to worry about - at Smart Currency Exchange we can provide a complete support package in this area. To protect against currency fluctuations, we adopt hedging techniques such as forward contracts to provide stability to those engaged in international trade. We also help exporters to maximise margins by offering significantly better-than-bank currency exchange rates. This support allows you to focus on your core objective – developing your business abroad.


For more information on Smart Currency Business call: 0845 638 0571 (or +44 (0)207 898 0541 from outside the UK) or visit our website at: SmartCurrencyBusiness.com