US $ Collapse Will Affect Water Ionizer Prices

Three years ago, I was selling Tyent water ionizers in Canada. At that time, I had to pay nearly $1.30 in Canadian dollars to purchase $1.00 in US dollars. Canadian customers hated the fact that the currency exchange rate caused the prices in Canada to be higher than what their American friends had to pay.

Today, Americans have to pay a premium to buy Canadian dollars. Does that mean that Canadian economy has been booming? The economy in Canada has been holding its own for the past three years, but relative to the USA, Canada looks like a super star which explains the dramatic change in currency rates. If Canada’s economy were not tied so closely to the American economy, the exchange rated difference would have likely been much more dramatic. Let’s take a look at the relationship between the US and Japanese currency as an example.

It takes two American dollars to purchase today what it took one American dollar to purchase from Japan five years ago. If you live in an isolated world, currency exchange doesn’t matter. However, those days are over. Currency exchange rates affect purchasing power.

The High Cost of Enagic Machines Isn’t Going to Change

The Enagic SD501 sells for US$3,980. Five years ago, the same machine sold for US $3,980. What does that mean? The American public pays the same price for the SD501, but the company that imports the machines is paying double what it paid five years ago. Alternatively, the Japanese supplier has seen its revenues drop by 50% in real terms. Obviously the equation has enough profit built in that allows the company to hold its prices. Nuf said!

What does all this mean for Enagic pricing going forward? Unless you envision a sudden reversal in the fortunes of the American economy, or Enagic deciding to dismantle its MLM system, the price of Enagic machines is not going to come down. If the US dollar continues its downward spiral, there is only one direction that prices can go unless something gives.

What About Prices for other Water Ionizers?

The bad news about the collapse of the American dollar pertains to all water ionizers that are imported from Asia or anywhere else for that matter.

The good news is that the prices have been so overly inflated in the past that the American companies that import the products have been able to maintain prices. In fact, the prices paid by consumers have actually dropped because the dealers have been dumping machines at or close to their cost. Dealers don’t carry inventory, so they can be very flexible on pricing despite the fact that distributors demand that they maintain MAP pricing.

When the manufacturers in Asia begin to refuse payment in US dollars, the cost to the American distributors is going to go up. What does that mean to you as a consumer? Higher prices!

What Can Be Done to Make Ionized Water Affordable?

It’s not all doom and gloom as the antioxidant filters offer an effective and low cost alternative.

At $329, the Alkastream offers the same health benefits for less than one tenth the price of the Enagic SD501. The currency issue doesn’t seem like much of an issue as the company has indicated that they source most of the contents of their filters in America. Given the fact that the primary component of their machine is the filter itself, I think any future upward price pressure would be minimal.

The Revolutionizer MLM people sell antioxidant filters which sell for $599. Their units are made in the USA, which means they will be immune to currency exchange issues.

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