British companies selling and leasing Japanese manufactured goods have in recent months passed on increased cost prices to customers after negative GBP to Euro and Euro to Yen exchange rate trends worsened. This has affected office machine suppliers in particular since a majority of brands are Japanese including Ricoh, Sharp, Konica Minolta, Kyocera Mita, Panasonic, Toshiba and Canon. Up until a month ago the Euro to Yen exchange rate weakened over a past 6 month period, increasing purchasing prices by 30 percent. This was compounded by a weakening Pound Sterling. This has also affected the cost price of parts and toners supplied by photocopier, multifunction and printer manufacturers.
One unfortunate consequence of unfavourable terms against the Yen is that businesses might be tempted to use non-genuine toners to keep costs down, which can produce poor quality printing and jeopardise the manufacturer’s warranty.
In recent weeks, however, that Euro has been strengthening against the Yen and the pound is reported to be bottoming out against the Euro. If these trends continue, cost price pressures on British companies buying Japanese machines may decrease.