I remember about four years ago there was a lot of chatter about how the price of espresso equipment from Europe was getting more expensive due to the Euro USD exchange rate (I think it hit close to $1.5 to €1).

Now that the exchange rate has dropped to $1.16 = €1 (today) does anyone think we consumers will reap this benefit?

Not a totally academic question. I am in the market for a new grinder, and can wait if I have to.

I wouldn't expect any change (and since you posted the Euro dipped into $1.11 territory). One of the objectives of the forced devaluation -- and that's what's happening, make no mistake -- is not only to boost exports but to bring more currency into the Euro Zone and stimulate inflation. This could play out a couple of ways, generally speaking:

• QuickMill raises its Euro-denominated prices to Chris Nachtrieb and his margins stay the same, as well as the cost to US consumers (but QM makes more money on each sale); or
• QuickMill keeps its prices the same, but Chris gets better margins if he sustains his current pricing.

Of course, it's more complicated than that. US distributors may have currency hedges in place that dull the effect of swings in the exchange rate (up as well as down). US pricing may be affected more by fluctuations in inventory than currency exchange (this is not a high-volume business). And newly-introduced machines may end up with better pricing depending on how the development/marketing/sales cycle for those machines was executed by the manufacturer.

Bottom line: the (current) favorable exchange rate for the Euro could be good for US consumers, but a number of things need to fall into place for that to happen.

I thought it would be interesting to see what European sites are charging for, say, a Mahlkönig K30 Vario - thinking (naively, it turns out) that I may gain by this rather precipitous drop in the Euro.

So I searched using the German Google.

As it turns out, the prices I found are €1,689 and up.

It seems that being part of the largest market in the world has its advantages.

I will wait a month or so to see if any of this shakes out in our favor, but I am not really that hopeful.

Although perhaps not of interest to the OP , the price of a Londinium I is improving.

...Which is music to my ears.

You might want to keep an eye on EspressoCoffeeShop. Members of the site have ordered from here and been happy, and it seems like an easy way to take advantage of the exchange rate. A few years ago I kept thinking about picking up an Elektra T1 because you could do really well with the exchange rate. If I'm not mistaken, without the VAT and including estimated shipping and import tax, it looks look you could pick one up for about $2,800 - $2,900 right now ?!? I may have to revisit that thinking!

(Edited to included shipping and import tax.)

There are a lot of things which go to pricing, currency is one of them. If the Euro continues to stay low relative to the USD, prices of European made goods in the US will eventually come down. As other posters have said, high inventories and contractual curbs against changing currency rates may slow it down.

The Londinium isn't sold on a Euro basis, but on a GBP basis. If you think about it, sinking Londinium prices may tell you something about the USD.

I hate to disagree, but the Euro is not sinking relative to the dollar as a result of a "forced devaluation." "Devaluation" is a central bank policy to weaken its country's (or the Eurozone's) own currency by arbitrarily and publicly setting its exchange rate relative to other currencies. Devaluation is primarily a tool to lessen the impact of foreign debt.

The Eurozone itself doesn't carry much foreign debt, although several countries in it do. One of the big problems in the Eurozone is that countries in financial crisis do not control their own currencies and can't use devaluation as a tool to control those crises. That's why we're looking at a possible "Grexit."

It's always a mistake to try to figure out a market's motives, but it looks as though the two largest components of the Euro's drop are:

• (A) Quantitative Easing (QE), which means the ECB is trying to "stimulate" by buying Euro based government bonds with "new" Euros, which necessarily includes increasing the money supply (by "printing"); and
  (B) The strengthening of the dollar (relative to just about everything), as our economy looks more attractive to foreign investors.

Note though, a weaker Euro is good for European exports, and is a desirable (if you're the ECB) side effect of QE.

If you buy equipment directly from Europe hoping to get in early on the favorable exchange rate, make sure it's set up to run on US power.

Rich

boar_d_laze wrote:... The Londinium isn't sold on a Euro basis, but on a GBP basis. If you think about it, sinking Londinium prices may tell you something about the USD.
...

If you buy equipment directly from Europe hoping to get in early on the favorable exchange rate, make sure it's set up to run on US power.

True. The Canadian dollar has fallen roughly 20% to the US$ in the past few months.

Unless one is planning a visit, I am not sure if buying espresso equipment from Canada is worth it for Americans, as US retailers can be very aggressive on (non-MAP) price - but there wouldn't be any power issues.