Sitting with her marketing manager in their downtown Chicago office, Carolyn Scott was working on her purchasing forecast for the fourth quarter, and decided that she would run a 10% off promotion for the upcoming Black Friday and Cyber Monday shopping events.
This promotion runs the risk that increased sales volume won’t compensate for the 10% contra revenue. However, it’s a risk that Carolyn is confident in taking, because she made significant savings in the last quarter, by moving her international payments from her local bank to the WUSMOnlineFX service.
Carolyn’s Internet business, Extremetech inc., builds customized high-end PCs sold to gaming enthusiasts, graphic designers, music producers, and other users in need of power computer systems. With a turnover in excess of $20 million USD per annum, monthly component orders from Japan typically amount to over ¥25,000,000 JPY.
When she called her local bank about her April 2012 supplier payment, she was offered an exchange rate of $1 USD = ¥87.618 JPY—meaning she would need to send $285,329 USD to that ensure that her supplier received ¥25,000,000 JPY.
After she got off the phone, she went and signed up for an Online FX account, and was offered an exchange rate of $1 USD = ¥88.558 JPY—meaning she would only need to send $282,301 USD for the same payment. That equates to a savings of $3,028 USD due to the better exchange rate.
Seeing the substantial cost savings she could benefit from, making the switch from her local bank was an easy decision. Extremetech now makes all of their supplier orders through Online FX, saving a grand total of $36,336 USD a year—just by receiving a better exchange rate.
Sign up today to see how Online FX can help your business to operate internationally.
*Comparison made in April 1, 2012 with a popular US bank.
** Annual savings assumes a constant difference between providers’ rates.
^The above scenario provides an example of how a customer can use our services to efficiently meet their payment needs. The example given is not based on an actual Western Union client story, but is presented for illustrative purposes only.