How MGH Equipment uses OFX to keep the little red tractor running
As a market leader in the age of borderless transactions, OFX is always looking for new opportunities to support our business customers as they move through our increasingly global world. The story of our customers at MGH Equipment shows how, by using OFX, the company saves on international exchange rates and avoids unnecessary fees to bring their own customers competitive pricing on products.
Who are MGH Equipment?
MGH Equipment is a service that specializes in finding equipment for a variety of needs like pumping, engineering, refurbishment, service, installation and supply of process equipment. Since the late nineties, the company has serviced numerous industries and runs its own workshop which is equipped to repair various types of process equipment.
Co-owner of MGH Equipment Greg Hamilton explains how the company became a US distributor for Antonio Carraro Tractors, which are manufactured in Italy, as the tractors unique design made it ideal for managing Eastern Washington’s hilly orchards. Greg and the team at MGH Equipment were able to purchase the product directly from the manufacturers in Italy.
“Thanks to OFX, I can better serve my customers with reliable pricing.”
Greg Hamilton, MGH Equipment.
How was OFX able to help?
While the ability to purchase these products directly was great, there were some initial challenges that came with transacting internationally. The first challenge came with purchasing the products in the first place. The Carraro equipment was sold in Euros, which meant that every time Greg needed to make a purchase, his bank would change a 7 percent margin on each transaction. In addition to this, the MGH Equipment price book, and its profits, fluctuated with the Dollar/Euro exchange rate.
To stabilize pricing, Greg turned to OFX for help and was able to customize a currency risk strategy that combined forward contracts (buy now, transfer later) with spot contracts (transfer at the current rate of exchange).
So how does this help MGH Equipment today?
Since using OFX to manage currency risk and avoid unnecessary fees, MGH Equipment’s price lists are reliable and Greg can price the tractors to be competitive in the market. Since forming MGH Equipment in 2012, the Euro has cost Greg as much as $1.35 and as little at $1.05. With volumes in the hundreds of thousands of dollars, fluctuations of 3/10th of a percent have saved MGH Equipment thousands of dollars.
Greg praises OFX for its help with MGH Equipment’s journey, “Thanks to OFX, I can better serve my customers with reliable pricing. OFX has been very helpful to me. It provides the kind of customer service we all strive for.”
Whether you’re a small or medium business, OFX can provide personalized customer support to help you and your business grow. With our dedicated currency experts, we can help you mitigate risk and save on unnecessary costs. We understand that your world never stops moving, so we won’t either.
Where The World’s Moving
Welcome to the Where the World’s Moving content series that celebrates what it means to be a global citizen told through the eyes of the people that are living and breathing this ethos every day. Go to Hub
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