Domaining, Profiting, and Exchange rates...

[GUA]

Hey Guys,
I was just curious as to an opinion on this matter...
I sold a name for $1960 USD. I used xe.com to find out how many GBP I would get. It stated £995. I checked my balance today and I only got £975.

When I project domaining profits I use an excel spreadsheet and say I bought domain x for $x, and sold it for $y. Then I can see my profit...
However after this it just struck me about exchange rates. My profit may not be as much as it seems.

Just thought I'd instigate a debate as such regarding this, and the best ways to receive money to get the benefits of the best exchange rate.
Also do you think xe.com is wrong, or my bank/escrow decided to take even more of my 'profit' from me.

Thanks

 

[Thomas Nash]

I have exactly the same problem as you, Ive actuallly been thinking about setting up a totally USD account instead of a GBP one, because I hear you can do this and it would save me a great deal in exchange rate fees.

I think its the banks rather than escrow or any other service that cut into profits because they either a) give you a pathetic exchange rate or b) take a cut themselves for exchanging. Escrow send the money to your account in USD no matter who you are, and Paypal give an OK exchange rate with no fee.

Theres no real way around banks cutting into your profits (to my knowledge), its just something you've got to live with I suppose.

 

[Duckinla]

Exchange rates are a big business issue in a global economy. Consider a company in Canada selling to the US. 3 years ago if they sold an item for $1,000, it would convert to something like $1,600 Canadian which they would use to pay their bills. Today it converts to something like $1070 Canadian. Basically they would have to raise prices by over 50% in order to just stay even. It's a serious tourism issue as well. It often play a role in whether or not people take an international vacation, and where they go.

You may have gotten a poor exchange rate, or you may have paid some fees, depending on how you received your funds.

 

[bensd]

They are probably all working on different exchange rates, i generally use xe.com as well and the sums are normally slightly out.

 

[GUA]

My question thus would be In your opinions will purchases counter baance the effects of losing profit in sales, as they both have the same exchange rates...

 

[GeorgeK]

XE.com shows MID-MARKET rates. When you buy or sell, there's a spread (just like the bid-ask in the stock market), and that spread is tight only if you're doing large sums (i.e. more than $1 million).

 

[dotNetKing]

My UK bank normally deducts £9 GBP ($18) from escrow.com transfers.

It doesn't deduct anything from sedo.com transfers.