As Australia’s dollar reaches parity with the US dollar for the first time in thirty years, the nation’s newspapers and politicians are awakening to the reality that this is not a good thing for most Australian exporters, particularly for those mineral industries which are cited as being responsible for the Goldilocks economy.
Those concerns are real, as this affects the employment of millions of Australia in the agriculture, mining and tourism industries.
Selling a price dependent commodity product locks a country or business into cycles they can’t control; currency movements, trade wars and cheaper competitors.
Adding value and creating products that can withstand the commodity cycles is the future for advanced economies. It’s as true for the businesses within these countries as it is for the entire nation.
If your business sells on price, then you’ll need to think on how you can change your customer’s perception about your product before they see it as a commodity which can be bought cheaper from someone else.