Young Living Singapore has just announced revision to the prices wef April 2017.
Below is a copy of the email that was sent out to everyone:
We would like to inform you that Young Living Singapore will revise its peg rate or exchange rate multiplier (ERM) effective 1st of April 2017 to bring it closer to current exchange rate trends. The revision of the peg rate will affect product pricing (from 1st of April 2017), distributor commissions (Commissions paid out in May 2017 based on April 2017 commissions) and all inter-company transactions.
You will see a slight increase of an average of 3% in our product pricing across the board beginning 1st of April, with no change in corresponding PV except for some items as indicated below*. We are happy to announce that the distributor commissions rate will have a higher increase than the product pricing rate, which will benefit all distributors earning commission. The peg rate will be adjusted to 1.37 beginning April 2017.
*While there will only be a slight price change in products across the board, there are a few products that will have a bigger price change, namely Feelings Kit Essential Oil Collection, Raindrop Technique Essential Oil Collection and Everyday Oils Essential Oil Collection. These changes are due to our efforts to ensure that you always have access to the highest quality essential oils. We are constantly looking for smart, sustainable, and uncompromising solutions to stock challenges such as oil scarcity and difficulty sourcing valuable oils. For these three products, PV will be increasing along with the price.
| FEELINGS KIT | |||
| Wholesale Price | Retail Price | PV | |
| Current Price & PV | $279.00 | $367.11 | 170.75 |
| New Price & PV | $298.00 | $392.10 | 175.75 |
| RAINDROP TECHNIQUE COLLECTION | |||
| Wholesale Price | Retail Price | PV | |
| Current Price & PV | $207.00 | $272.37 | 129.75 |
| New Price & PV | $229.00 | $301.32 | 134.75 |
| EVERYDAY OILS COLLECTION | |||
| Wholesale Price | Retail Price | PV | |
| Current Price & PV | $212.00 | $278.95 | 129.75 |
| New Price & PV | $229.00 | $301.32 | 134.75 |
To understand this a little, we decided to explain a little the concept and rationale behind the price increase.
1. WHAT IS A PEG RATE?
This is an exchange rate that is annually calculated within the company.
2. HOW IS IT DERIVED?
Every year, the company will study the prevailing exchange rate trends for the past 6-12months, factor in cost of operations; to finally determine a new rate that is to be used the following year.
Every year, the company will study the prevailing exchange rate trends for the past 6-12months, factor in cost of operations; to finally determine a new rate that is to be used the following year.
3. WHAT DOES IT IMPACT?
Peg rate is for converting USA prices to local prices and for converting USA commissions to local sums.
Peg rate is for converting USA prices to local prices and for converting USA commissions to local sums.
4. WHY DID WE HAVE A PRICE INCREASE IN PRICES 2 YEARS BACK IN SINGAPORE AND YET DID NOT SEE COMMS RATE INCREASE?
Price increment about 2 years ago was a result of an increment in raw materials. Hence the price adjustment was across ALL International markets. However, because that price increment is NOT due to peg rate change, commissions was not adjusted.
Price increment about 2 years ago was a result of an increment in raw materials. Hence the price adjustment was across ALL International markets. However, because that price increment is NOT due to peg rate change, commissions was not adjusted.
5. WHY DID SINGAPORE NOT HAVE A PEG RATE CHANGE LAST YEAR IF IT WAS AN ANNUAL EXERCISE?
The review for peg rate (last year) followed shortly after the price increment due to raw material cost. To exercise a peg rate change shortly after the 1st price increment would have resulted in a 2nd wave of prices increase. YLSG made a deliberate decision to maintain prices for the larger benefit of the user community. With that, the peg rate was therefore not adjusted in the last year. And therefore commissions continued to be paid out base on the old rate.As we understand the intricacies and multiple layers of impact of the peg rate and other external factors, we hope this gives you insights as to the dilemmas and tension points that need to be considered on various levels; in order for YL to make balanced decisions that keep in view all the needs of different groups.
The review for peg rate (last year) followed shortly after the price increment due to raw material cost. To exercise a peg rate change shortly after the 1st price increment would have resulted in a 2nd wave of prices increase. YLSG made a deliberate decision to maintain prices for the larger benefit of the user community. With that, the peg rate was therefore not adjusted in the last year. And therefore commissions continued to be paid out base on the old rate.As we understand the intricacies and multiple layers of impact of the peg rate and other external factors, we hope this gives you insights as to the dilemmas and tension points that need to be considered on various levels; in order for YL to make balanced decisions that keep in view all the needs of different groups.
Should you still have questions about the peg rate, please feel free to contact us or Young Living for more information.
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