The problems in Greece and the consequential fear over the future stability of the Eurozone have done little to help the market for promotional USB memory sticks. Whist stability in this sector is only likely to be of any interest to the relatively small number of companies that operate in it across Europe it is a sector that has seen more than its fair share of price challenges of late.
If you ever wondered why very few companies selling branded USB memory sticks put prices on their web sites forcing you to contact them for a price (which of course not everyone wants to do or has the time or inclination to do) it’s simply because the core costs of the product that dictate the sales price are inextricably linked to the currency exchange markets, the commodity markets and consumer sentiment.
Flash memory (including the flash memory used to make USB memory sticks) is traded as a commodity just like coffee, tea and oil so it is subject to daily price swings as the traders that deal in it judge global market conditions. Prices are fixed in USB dollars ($) so any for companies in the UK any weakness in Sterling (GBP – £) against the USD ($) pushes up the price up and finally seasonal purchasing patterns lead to supply shortfalls and rising prices.
With all of these “fluid” elements coming together companies that sell USB sticks can typically only take the risk of fixing their prices every day and it is simply not practicable to change prices daily on their web sites.
Hopefully the decision in yesterday Greece elections to support the pro-bailout parties will help restore some stability to the markets and in particular the currency markets. Nervousness about the situation across the whole of the eurozone and in particular the possibility of Greece voting to leave the EU had pushed the pound (GBP – £) down from around $1.6 a couple of weeks ago to $1.53. This has a direct impact on the cost of branded USB memory sticks which when combined with concerns about future demand (based on market sentiment) has led to further price volatility.
Ironically in the middle of all of this prices for USB sticks with a larger memory capacity have dropped like a stone. Prices for 8GB and 16GB are have fallen by well over 50% in the last couple of months and although there are “mutterings” of the prices going back up it’s unlikely they will ever return to their former highs.
As ever the best advice if you are looking to buying branded USB memory sticks is to speak to a reputable supplier that understand the market dynamics and can offer you some professional advice on when and what to buy.