Today’s picture shows you the fever chart of the Swiss Franc versus the Euro, yesterday. After a long period of artificially maintained stable exchange rates, the Swiss Federal Bank decided to let the Franc float again, sort of freely, against the other currencies. The result: Being in the Euro zone, you pay now 20% more for a Swiss Franc. Or a product sold in Swiss Francs. I am not an expert, but I take it as a sign of significant mistrust in the Euro as sound currency and there might be more troubles ahead. Everybody does what we also did: Trying to get rid of Euro as fast as possible.
What does this graph mean for me: It means that my products got 20% more expensive for my clients. It means that prices will go up by 20%. Most of my production costs are in Swiss Francs, and hence the other side of the medal, me buying cheaper from European suppliers, does not help much.
So there we go: Shortterm prices go up, drastically, without me actually getting more money. In the end, sales will probably go down.
Midterm: I will need to change. A lot. What we do, how we do it and where we’ll do it. Exciting times ahead, but, to be honest, with limited fun factor.