Teaser: Kyle Sloat on The Global Sales Mentor Podcast

5 Jun 2021 · 1 min

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1:23

In this teaser segment of The Global Sales Mentor Podcast, host Zach Selch and guest Kyle Sloat discuss how businesses should decide whether to price products in local fiat currencies (such as euros, Canadian dollars, and pounds) or require payment in US dollars. Kyle suggests that offering prices in major fiat currencies is generally safe and that the decision can be guided either by the country of the buyer or by the proportion of total sales that would be affected. He advises companies to run their own calculations, estimating the incremental revenue that could be generated by local pricing (e.g., $10k‑$100k) against the cost of hedging currency risk (e.g., $1k). The conversation emphasizes a cost‑benefit analysis: if the hedging expense is small relative to the potential sales lift, adopting local currency pricing is worthwhile.

which currencies are— you're going to offer a price in that currency and which currencies you're going to say, hey, suck it up and pay me in dollars, right?
Yeah. So that's a good question. I would say, you know, anything like euro, Canadian, pound, right? Super safe. We call them the fiat currencies. So you're not even thinking—
sorry to interrupt you, but the way you're looking at it, you're not even thinking about sales, you're saying this is just a no-brainer because it's not going to change that much, right?
I would say, yeah, I would say maybe by country is where it makes the most sense. But I guess if it's a percentage of overall sales, right, I would say, I would say maybe do the math yourself, right? Think about an additional few percentage on your overall volumes of sale. And that's what I always encourage people to say, is this worth it to me? you know, $10,000, $20,000, $30,000, $50,000, $100,000 on these sales, does that move the needle for me?
No, that makes perfect sense because I think you're taking a look at it and you're saying, okay, is this going to get me another $50,000, you know, is it going to get me another $50,000 or $80,000 worth of sales? And if the cost is only going to be $1,000 for, you know, the hedging, then yeah, it's worth it for me, right?