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There’s a story behind every transfer: Link Audio

Find out how OFX has helped Link Audio save on FX in the fast-changing music industry:

A former studio retail executive and experienced player in the music industry by any standards, Michael Jago set out in 2015 to make it on his own. With an entrepreneurial willingness in tow, audio wholesale business Link Audio was founded. 

From recording devices, microphones and speakers, to keyboards and music stands, Link Audio offers a wide range of products for both home studios and live performances. This diversity means the business is set-up to weather the peaks and troughs that come with fluctuations in customer demand and external events.

Navigating the pandemic

In 2020, the business powered through the challenges of the pandemic thanks to home studio musicians, hobbyists and professionals alike looking to deck out their home setup. And while home recording surged, products designed for live performances naturally came to a halt. Case in point of the benefits of having a diverse business offering. 

Working closely with manufacturers in Germany and China, the company regularly deals in US dollars and euros. “When I started the business in 2015, I went to the big banks for my FX and their fees were outrageous.”

Making the switch to OFX

Michael wanted a cost-effective alternative. He recalled using OFX previously for personal transfers and found the exchange rates more competitive, so he switched.

My wife and I had previously used OFX for travel and the system worked really well. Matt is fantastic; his service has been great, he keeps me constantly in touch with what’s happening, looks after me in terms of rates, and I know they’re better rates than the bank.

Paying overseas suppliers

The big clincher for Michael is the confidence that his suppliers will be paid on time – a critical factor for any business: “Paying suppliers is a massive priority for our business. The one thing your suppliers want is to be paid, and quickly. I’ve never had an issue with OFX, the funds get to the supplier quickly.” 

Supply chain issues, a weak Australian dollar, and larger players holding deeper reserves of currencies are just a few among many challenges Michael faces as a business owner. Even the recent rise of inflation has put a dent on sales, as discretionary spending – like buying instruments and going to concerts – tends to take the hit first when consumers’ budgets are squeezed by high prices.

Managing currency risk

With so many external factors outside of his control, Michael is all about taking as much risk off the table when it comes to foreign exchange. Currency is bought a month in advance, so the costs of goods can then be calculated at the set rate. This foresight means it’s easier to manage budgets, minimising the potential knock-on effects that can come from exchange rate volatility, such as raising customer prices to cover the increased cost. This ultimately helps the business stay competitive in a cluttered market.

Putting trust in the OFXpert

By his own admission, there are still questions Michael grapples with when it comes to managing FX: ‘How prepared am I to be locked in at a certain rate?’, ‘How low should I go?’ However he is reassured by the fact that OFXpert Matt is only a phone call away. 

“I had a good amount locked-in at 72 cents. Now I’ve used that all up. I took a gamble and didn’t buy at 70 cents, and now it’s back down to 68 US cents. I’ve got to wear that now. How much money it can make you or cost you if you don’t get it right is significant. Without Matt’s help I’d be in a very different position than I am right now.” 

How would Michael describe OFX in one word? Helpful. 

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