Don't know where you got the idea I'm not active in the industry anymore. I never said that, and it's not true......... or was that an example of one of your loaded comments? - Last year, I was hunting in Botswana for more than 2 months and then went straight up to Tanzania for almost another 5 months. I also declined 6 weeks (freelance) hunting in Mozambique (2 back to back Leopard hunts) because I didn't have time.

What is true is that I've (not always successfully) been trying to have more of our hunting done by the PHs who work with/for us this year, because we're working on a new hunting related business enterprise that requires me to be at home more. We'll go public on that when it's ready. It's taken us close to a year already and the way it's looking may well not be finished for some months yet, and we've been working on it about 16 hours a day, 7 days a week. I did however have to spend some time in the Selous though.

The oops comment referred to the fact that had I known you had offered the type of blanket discount you had, I probably would have rephrased my comment out of politeness.......... Ah well, shit happens, but the comment wasn't aimed at you....... it was and still is, just my opinion that a blanket discount will adversly affect anyone who offers it as far as cost of fuel and imported goods go because both have gone up in price dramatically. But as I previously said, it's their business and they can do what they want.

quote:

Originally posted by infinito:
Me thinks it is just fair to drop prices while the Rand is in such a bad shape. We all work on profit margins......why not drop your price to give the benefit to the client, keep your business going, and make the same dough..?????

Charl

What you are saying sounds very noble and probably great for positive short term “consumer†sentiment but it's naïve and not practical. If the R/$ swings the other way - as it has done rather consistently from about 2003 through to about early 2006 somewhere, (while we all expected it to go the other way any minute), are you going to raise your prices every so often to make your required margins?

Have a look at this long term (10 year) graph - it clearly shows some of the trends I am referring to.



If the principle of raising/lowering your prices due to exchange rate fluctuations is acceptable, why not also link it to the oil/fuel price as well? Fuel costs are a major part of any outfitters’ expense sheet - and this past season the fuel cost was way above what we all expected it to be.

Now THAT will require a lot of explaining... and it simply gets too complicated.

Remember that we are referring to expected (or future) values here. Not current values. If you lower prices, those are future prices. So all adjustments are to future income based on expected exchange rates – unless obviously you do a price list in Rand, which passes the exchange rate risk to the client to a certain extent.

We are discussing this issue in hindsight – but who knows what the future will bring in terms of the many exchange rates out there? And the oil/fuel price?

Anyone that has been in business for a long time will understand that "sometimes you're the bug and sometimes you're the screen". We all operate in an uncertain market where we'll always sometime lose a bit and at other times make up a bit. You have to plan as well as you can and then take it as it comes. If anyone runs a very marginal outfit, as many do, exchange rates or fuel prices can sink them, unless luck and lucky market swings let them make some profit. That is simply irresponsible if you sell into the future, like we all do.

Keep in mind that most African big game outfits pay most or all of their expenses in US$ anyway, so the R/$ or other exchange rates has little or no influence on them. And they book years in advance. And also they don’t only deal with people earning US dollars. There are Aussie dollars, the Euro, Brazilian Real, Canadian dollars and the rest. You simply cannot monitor and try to predict all of these exchange rates.

What was that principle of supply & demand determining price again?

Johan,

Thanks for explaining your point of view. The issue here is a bit different from what you sketched though.....

Also, you qouted a small piece of what I said, and I doubt it very much that you read all the exchanges or even the advertisement I made on the "offered hunts"...Then you would have had the big picture of my point of view..
Just for the record Johan, our prices from 07/08 to 09, went up by about 20%.....

What I offered is the following: a SHORT TERM QUICK FIX (for hunters), FOR PLAINS GAME IN SOUTH AFRICA, VALID ONLY FOR AS LONG AS THE OUTFITTER are happy with the exchange rate......ON AR, IN ORDER TO GIVE THE BENEFIT TO THE HUNTER TO GET A BETTER DEAL ONLINE, IT IS NOT AVAIABLE TO OUR AGENTS.

If we were happy to get $400.00 for a 1x1 PG hunt at R7/1$ it = R2800.00 If we booked the same hunt at R10/$1 @ $300.00 for the same 1x1 we would get R3000.00. If we get the money upfront, as per the terms, why is this "naive"??

Anything wrong with that from a business perspective Johan?

Also, I take it you have fixed rates (in dollars) for your Moz. Buff hunts in 2010?

Please take note of my previous ref. to the 2001 situation, indicated in your graph......

So by the way, great trophies coming out of your camp in Moz...looks like it has been a bussy year again for you guys.

quote:

Originally posted by shakari:
Don't know where you got the idea I'm not active in the industry anymore. I never said that, and it's not true......... or was that an example of one of your loaded comments? - Last year, I was hunting in Botswana for more than 2 months and then went straight up to Tanzania for almost another 5 months. I also declined 6 weeks (freelance) hunting in Mozambique (2 back to back Leopard hunts) because I didn't have time.

What is true is that I've (not always successfully) been trying to have more of our hunting done by the PHs who work with/for us this year, because we're working on a new hunting related business enterprise that requires me to be at home more. We'll go public on that when it's ready. It's taken us close to a year already and the way it's looking may well not be finished for some months yet, and we've been working on it about 16 hours a day, 7 days a week. I did however have to spend some time in the Selous though.

The oops comment referred to the fact that had I known you had offered the type of blanket discount you had, I probably would have rephrased my comment out of politeness.......... Ah well, shit happens, but the comment wasn't aimed at you....... it was and still is, just my opinion that a blanket discount will adversly affect anyone who offers it as far as cost of fuel and imported goods go because both have gone up in price dramatically. But as I previously said, it's their business and they can do what they want.

Steve,

Good luck with the new venture.....

I said it in our previous exchanges, and I will say it again. We all know you are VERY active in the hunting industry....My ref. is to your statement that you do not hunt in SA anymore.

I said this before. You do not hunt in SA (realy, be realistic, you don't)so do not comment on things going on in the hunting industry in SA.....but you did not, as you never saw the link.....

Any case we argue around the point....I thought you read the link to my advertisment for PG in SA, you did not read it, so there is no point to this anymore, as you could not have offended me by not knowing.......

I'm licenced to operate in SA and still do, but it doesn't make up a large part of my business....... and I have every right to comment about SA or anywhere else if I want to....... and I don't need anyone's permission to comment on anything.

My apology for being so naive, you of course have the right to comment on anything you wish....... and so will I if I feel offended by any of your statements, or think you are wrong in any way.........

I'm going in 2009 but I am paying for the day rate in 2008 so I can get the lower 08 pricing -- trophy fees will be higher as well

If prices go up, then I make more money, if they go down then I make less money...but it all levels off because so goes the rest of the world in every business, and nothing really changes...Prices up? I have to pay more to operate. Prices down" I pay less to operate.

Nothing ever really changes does it? Our politics and economy can only be compared to professional wrestling!

Currency Conversion Results
Symbol U.S. Dollar Exchange
Rate South African Rand Bid Ask
USDZAR=X 1 Oct 23 11.097 11.097 11.097 11.112

Over 11:1 now how can it not affect prices, if it stays?

i think this 11:1 exchange rate means my PH in Moz. is going to be VERY HAPPY with the tip i left him in US dollars!!( since he lives in RSA)

Fjold,

Have, a look at the outfitters offered section we have very good packages going. So we are using the low Rand to benefit you.

Use the opportunity while you can.