Rug orders from India are typically invoiced in US dollars — sometimes euros or pounds by agreement — and if your business runs in another currency, exchange rates quietly join your cost structure. A small importer cannot out-trade the currency market, but can stop it from ambushing the margin.
Where the Exposure Hides
The gap between order date and balance payment is 6–12 weeks of production plus shipping — and a few percent of currency movement in that window lands directly on your cost line, in either direction. There is a second, softer exposure: your retail prices are sticky, so sustained currency shifts squeeze margins long before you reprice.
Practical Defences
- Stop using your high-street bank's tourist rate. Specialist payment providers and modern business accounts move international payments at dramatically better spreads — the single easiest margin gain in importing.
- Price your landed-cost model at a conservative rate, not today's rate, so normal movement is already absorbed.
- Forward contracts: payment providers will lock a rate today for a payment in three months — sensible once order values grow, pointless complexity before that.
- Match currencies where you can: if you also sell in dollars (marketplaces often pay in USD), a natural hedge exists — keep the dollars and pay suppliers from them.
What to Ask the Supplier
Quote validity in writing (how long the price holds), and whether long-programme pricing can be fixed per season. We hold quoted prices for their stated validity and fix programme pricing for committed buyers — stability is cheaper than surprises for both sides. Ask about fixed seasonal pricing when you plan your first programme.