How to work with the euro
Checklist
- Find out whether your customers have switched to the euro, or plan to ask for quotes in euros or the option of paying for purchases in euros.
- Research how the euro has affected your competition, for example, new competitors or greater price transparency and pressure on prices
- Research the potential for attracting new customers by pricing in euros and promoting your products in EU countries.
- Decide whether you need to offer products priced in euros; set competitive euro prices.
- Prepare marketing materials and price lists quoting euro prices.
- Investigate whether your suppliers quote prices and prefer to be paid in euros.
- Research potential new suppliers from other EU countries.
- If necessary, open a euro bank account and establish systems for making and receiving payments in euros.
- Ask your bank about ways of protecting yourself against fluctuations in the sterling/euro exchange rate.
- If you carry out a significant amount of euro business, investigate the potential for financing your business using euro-denominated loans.
- Ensure that your book-keeping and IT systems can handle euro transactions
- Provide any training needed by employees to deal with the euro and understand the effects it has on your business.
- Review your contracts to see whether they need to be amended to take account of the euro.
- Routinely monior changes in the exchange rate and their effects on your profitability and competitiveness.
- Regularly review how the euro is affecting the market and whether you need to change your strategy in response.
Cardinal rules
Do:
- take advantage of the opportunities for new business
- fit in with what your customers want
- ensure that your sytems can cope
- look for ways to protect yourself against changing exchange rates
- be ready to change your strategy as the market evolves
Don't:
- assume that the euro doesn't affect you, even if all your customers and suppliers are UK-based
- ignore the potential threat of increased competition
