For the setting of export prices it is important to remember
that Honeyland has no domestic sales and that only
one export market is involved. Therefore, the price decision
is straightforward since the export prices are based
on the costs of sourcing the honeys as well as logistics.
The prices for the Japanese customers are quoted and
paid for in NZ$. Sue acknowledges that sufficiently large
profit margins are critical to manage foreign exchange
risk. Frequent currency fluctuations of the NZ$ affect
profits and in the long term the business itself.