List prices for Saxonica's products have been increased today (24 June 2016), in most cases by 20%. This is the first price change since November 2008. During that period the UK retail price index has increased by 22%.
The immediate trigger for the change is of course the volatility in the currency markets caused by the UK's decision to leave the European Union. Saxonica is based in the UK and sets its prices in GBP, but over 90% of our business comes from outside the UK, and many of our contracts with long-term customers are priced in USD or EUR. We don't want to be in the position where these customers are locked into a price that is higher than the price paid by new clients, and an increase in our list prices also reduces our exposure to the uncertainties of rapidly fluctuating currency rates.
Existing contracts, quotations, and invoices will of course be honoured whatever currency they are written in.
We do not expect the UK's decision to leave the EU to have any adverse effect on our business, other than the short-term problems caused by uncertainty and speculation. We have always traded globally, and we have never found that doing business with EU countries is significantly easier (or harder) than with any other country in the world. We benefit greatly from a world in which there are no trade barriers, but our business is global rather than regional.
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