BUSINESS INTELLIGENCE
Navigating the volatility: how FX rates impact the toner market The toner market is a constantly changing landscape, with a variety of factors that can impact pricing. These can include supply and demand, vendor promotions and quantity discounts, however one of the most volatile and least controllable factors that affects pricing is foreign exchange (FX) rates.
Many toner brands set their buy price in a foreign currency, which means that distributors must adjust their pricing on a daily basis based on the FX rate. This can result in large profits or losses depending on when stock is purchased and revalued. The toner market in the UK is no different, showing a particular adherence to the European FX market trend. Using prices from the top six toner brands in the channel, this graph indicates the high correlation with the EUR-GBP market.
Toner trade-o: how Forex rates impact pricing Toner cartridge average price vs EUR-GBP (Jan 2019 - Jan 2023)
Exchange Rate Toner Price
Wickus Bester Data analyst at Stock in the Channel
Date
Source: Stock in the Channel and European Central Bank – Statistical Data Warehouse (2023)
could result in large gains in stock revaluation, ultimately benefiting their profit margins. It has been forecasted that the EUR to GBP exchange rate will grow stronger in the coming year, which may cause toner prices to go up in the future. Distributors, and the industry, should prepare for the possibility of rising toner prices to be a theme in 2023.
The fluctuation in the EUR to GBP exchange rate can have a significant impact on the prices of toners in the UK market. In today’s world of advanced technology, the ability to predict FX rates in the short- to medium-term could have a significant impact on purchasing patterns and stock holdings. This would allow businesses to make strategic purchasing decisions that
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