pete(at)usjabiru.com
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 Posted: Fri Nov 02, 2007 2:40 pm Post subject: Engine Price Outlook |
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Hello All,
As many of you know engine prices from our Jabiru competitors have just had a substantial increase. This is due mainly to the weakening of the US dollar against other world currencies. At Jabiru USA we are facing the same problem. The Aussie dollar is now at about $ .93 US. Back in 2001 when we started importing engines the Aussie dollar was $ .46 US. As you can see with a little math, our costs have increased 100% since then.
We are able to sell Jabiru engines at our current price because I was able to lock in some AU$ at a favorable rate. That’s the only reason we have not increased prices already. I will run out of those locked in AU$ before the end of the year and at that time will have to increase prices. How much will the increase be? If I have to pay the current rate of exchange my costs will go up about $2,000.00 on a Jabiru 3300. There is no more margin to squeeze to hold down part of the increase.
The bottom line is that we have about 35 engines left at the current price. These engines will be produced in Australia in November and December and arrive in the USA in January & February. Once these 35 are sold a new price will take effect.
Please contact us if there are any questions.
Pete Krotje Jabiru USA Sport Aircraft, LLC 931-680-2800 www.usjabiru.com
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