Dollar vs Rand: Impact on Trophy Prices and Daily Rates?

[ActionBob]

Looks to me like one U.S. $ is thirty five quadrillion Zim and if I was booking something there I would know that.

Why would you want to know that? The currency is defunct and not worth the paper it is printed on... before most of it was used up, they had plumbing problems getting it to flush because it was cheaper than TP and people were using it.

 

[Royal27]

I am just saying why can't the bill/quote be in Rand so the PRICE IN THE COUNTRY I WILL BE IN IS USED.

No reason I can think of that the bill/quote can't be in Rand. It just isn't standard practice and most of us, myself included, are more comfortable dealing in dollars.

I would think this is simply a request you need to make up front. If the owner of the business won't do business in Rand then move on and find someone who will. I'd honestly be surprised if someone from SA refused to do business in Rand.

 

[Royal27]

they had plumbing problems getting it to flush because it was cheaper than TP and people were using it.

Things like this are the reason I don't get involved in International Monetary Policy and trading - I'm afraid I wouldn't see crap like this coming down the pipe.

 

[Wheels]

I am just saying why can't the bill/quote be in Rand so the PRICE IN THE COUNTRY I WILL BE IN IS USED.
.

1. Most US hunters aren't as knowledgeable as you.
2. Outfitters try to make it easier and more understandable to the end user. As good businessmen should.
3. A large number of foreigners would prefer it locked into a currency that are comfortable with.
4. etc.

If you are interested with any hunt, just ask the outfitter. I bet he will book it in Rand if that's what you want. Also will bet his biltong hunts are booked in Rand already.

 

[ActionBob]

I'm afraid I wouldn't see crap like this coming down the pipe.

Honestly Royal, I would not advise looking up that pipe!

 

[JimP]

One problem that I see with the hunting trip being quoted in South African rand would be how are you going to pay the outfitter? If you are in the US and go down to the local bank to send a wire transfer you are going to have to do it in US dollars or do you plan on converting US dollars to SA rand and then paying the bank in rand for your wire transfer, or do you plan on taking the rand with you in cash to pay the outfitter when you get there?

I can also see the price for hunts and trophy fees being all over the place if you want the hunt quoted in rand rather than US dollars. Lets say that this week the exchange rate is 10:1 and then next week it is 20:1, all the outfitter will do is to redo his price structure every week or perhaps raise his price high enough to compensate him for the fluctuation of the money that you are purchasing the hunt with.

I personally think that if the hunt is in US dollars or European euro's to look at the hunt and if you are satisfied with the cost of it then book it at that price and not to worry about what it is going to be 6 months down the road. In some cases you will come out ahead and in some you may loose, but why worry about it?

 

[ActionBob]

@JimP you make good points!

Of 4 hunts I've done in Africa so far;
The first 3 were all in USD by check to a US bank or agent, and one being wired, also in USD.

The 4th was all paid by credit card over the phone, on that one the credit card company changed the money to Rand when it was paid to the outfitter and those devils took me for about an extra grand! A little bit on the exchange rate wobbling a bit in the day or so it takes to process.. But mostly on foreign transaction fees... So lesson learned, know your credit card companies policies before hand! I do much prefer dealing with an outfit that can accept a check directly from me. Can't get much easier or find a lower cost way to pay.

Personally I am not looking to book in Rand. Nor would I look to change the price after the fact if I had something booked. and I realize that other countries experience different inflation rates... However as at least one outfitter already posted in the deals... Due to the change in exchange rates, there should be at least spot deals available.

 

[WildRose]

Looks to me like one U.S. $ is thirty five quadrillion Zim and if I was booking something there I would know that.
I bought a watch in Italy many years ago and paid 350,000 lira. At that time I new the exchange rate and got the watch they didn't tell me the watch was x dollars.
I am just saying why can't the bill/quote be in Rand so the PRICE IN THE COUNTRY I WILL BE IN IS USED.
As a consumer I will buy that currency if it looks like there is going to be a problem with the U.S. $.

If that is what you want to do it's simple, be upfront about it with the outfitter when you book. If they agree, no problem.

 

[Mekaniks]

Looks to me like one U.S. $ is thirty five quadrillion Zim and if I was booking something there I would know that.
I bought a watch in Italy many years ago and paid 350,000 lira. At that time I new the exchange rate and got the watch they didn't tell me the watch was x dollars.
I am just saying why can't the bill/quote be in Rand so the PRICE IN THE COUNTRY I WILL BE IN IS USED.
As a consumer I will buy that currency if it looks like there is going to be a problem with the U.S. $.

If that if you want you hunt quotes in Rand I am sure you can ask for it. But for me, if I can get the price USD it makes budgeting for a hunt that much easier for me. If I always need to have currency conversion for every daily rate, trophy fee, taxidermy, souvenirs, side trips, tips....it would be a huge turn off IMO. I am reasonably sure that that is one of the main reasons outfitters offer their hunts in the currenecy that is most convient for their base customers. I have seen hunt packages offered in Euro's and Pounds as well as USD. That said, if an outfitter is dealing with local land owners in R and comes across a good deal on a critter because of the exchange rate to USD (e.g. He can sell me an extra Kudu for 250.00 less than the regular trophy fee) and he offers it to me at the discount, I would be happy. But at the end of the day, if I agreed to 2000.00 per Kudu I just need to make decision if I am going to hunt them and how many.

 

[Scott Slough]

... if I agreed to 2000.00 per Kudu I just need to make decision if I am going to hunt them and how many.

I agree ... kudu and "how many" ... drive my safari planning, not Rand vs $ !

 

[Royal27]

One problem that I see with the hunting trip being quoted in South African rand would be how are you going to pay the outfitter? If you are in the US and go down to the local bank to send a wire transfer you are going to have to do it in US dollars or do you plan on converting US dollars to SA rand and then paying the bank in rand for your wire transfer, or do you plan on taking the rand with you in cash to pay the outfitter when you get there?

The bank will actually convert for you as part of an international wire transfer, or at least Wells Fargo will. The last time I did a transfer they actually offered to reduce the transfer fee by a few bucks if I would let the convert to Rand. My suspicion is that they would have then charged me a healthy exchange fee that would have more than offset the reduced transfer fee, but since I didn't do it I don't know that for sure.

 

[ActionBob]

My suspicion is that they would have then charged me a healthy exchange fee that would have more than offset the reduced transfer fee, but since I didn't do it I don't know that for sure.

Hmm, could be worth asking! Of course that might require a simple straight answer from a bank... Might not be worth the effort trying....

 

[Royal27]

Hmm, could be worth asking! Of course that might require a simple straight answer from a bank... Might not be worth the effort trying....

One more thing that you'd have to know in order to get a proper and fair rate in you wanted to deal in Rand instead.

Under the current "dollar system" the outfitter pays the conversion. If you insisted on Rand then you would pay. This would be a double whammy since you're both taking cost out of the outfitter'some business and adding it into your expenses.

 

[siml]

One of the other reason prices are quoted in Dollars, South Africa is not the only hunting destination. Zimbabwe, CAR, Cameroon, Bots, Tanz, Mozambique etc, in Africa, using dollar prices just helps to compare. IF you look the exchange rates, it's the rand that has got a lot weaker, not the dollar that has got stronger.

 

[jeff]

I see some hunts quoted in euro and US dollars and now with the weakening euro it would be cheaper to book the hunt in euro's.

 

[Mekaniks]

I see some hunts quoted in euro and US dollars and now with the weakening euro it would be cheaper to book the hunt in euro's.

Maybe... But if you do the conversions to Rand it looks to me like the hunts end up costing almost the same regardless if it Euro or USD? I am defiantly not an economist and barely qualified to even participate in this thread, but it sure looks to me like listing hunt pricing in different currencies is as much a marketing thing as anything else. Outfitters simply trying to make the planning process as easy for prospective hunters as possible? (And it took ALOT of good Malbec for me to accomplish those conversions by the way!!!)

 

[gordon-kruger]

Simon, WHY you forgot Zambia ???
Perhaps the most real "classic" hunting destination of all mention above.. ...

We counting daily rates and trophy fees in us-dollars, and we will never ever thing about to change the prices even if the rate Kwacha/Dollar should be negative for us from the day of booking up to the day of hunting, it's a gentlemen agreement that you keep your prices, but there is a lot of firms and outfitters that have a reservation for eventually currency fluctuation.

 

[siml]

Sorry Gordie......my humble apology.......Zambia, Lesotho, Swaziland.....Gabon, Republic of Houtbaai....

 

[KMG Hunting Safaris]

Sorry Gordie......my humble apology.......Zambia, Lesotho, Swaziland.....Gabon, Republic of Houtbaai....

 

[Royal27]

Republic of Houtbaai....

They opened hunting back up???? Will have to check it out.... Might be a good deal...