The Euro Is Killing Us

6a00e55029641d883401156fbe8cf2970c-800wi  The Euro is at its highest point in five months and it’s very bad news for Gustiamo. In fact, we pay our producers in Euros and we pay them either in advance or as soon as we receive shipments. Our producers are so small, they can’t afford to give us longer terms.

Experts say that the dollar is becoming weaker and weaker because the Fed is printing money like crazy and the government is issuing trillions of dollars in new debt to help us out of the recession. It might be good for America, it’s certainly not good for Gustiamo.

Today, we exchanged our dollars at 1.42 to make our payments in Euros. Meaning, it takes $1.42 to buy 1 Euro. Five months ago, we were paying the Euros at $1.20. It’s a disaster.  But don’t panic! We are going to try very hard not to raise our prices until the end of the year.

One Comment Add yours

  1. Marion Ungvarsky says:

    Ha, tell me about it!
    I am German and need food items sent by my sister, which I cannot buy here. The prices of german items have not risen at all, but due to the valueloss of the dollar we are paying through the roof.
    But this is nothing new, this goes on for years already. The 1,20 you mention must have been a recent intermezzo, we didn’t catch that. We always calculate with 1,35 to 1,45 for a dollar.
    It is so expensive to buy the most common items here. Like cheese: I am paying 5x the regular price of what my sister would pay in a german supermarket. Since she can’t send cheese, I have to buy that here from an importer. Insane! We will never be able to afford a fast internet connection or Sat TV, as the money goes away for food…
    It is a shame that the american made food items are so bad, because they would be easier and cheaper to get. Why can they not work in the same artisian way their ancestors did and still do?
    Oh well, that might be a political discussion which would not belong here.
    I am looking at the Martelli pasta once in a while. My birthday is coming up, maybe my in-laws will give me some money. They do that for the lack of gift ideas. I have only one bag of Maccheroni left. Hopefully I will be able to get a new bunch soon.

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