Charging in Dollars

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figment

New Member
Hi Guys, i am working on the pricing of one of our products at the moment.
The main target market is the US so it seems to make sense to charge in Dollars. However the dollar is not looking too healthy at the moment and everything i read is not painting a good outlook for it. So i can see it being frustrating charging a value that is worth less and less each month and not being able to plan too well a few months in advance due to currency fluctuations.

Any suggestions? Is charging Euros a big turn off for a US audience?
 

mneylon

Administrator
Staff member
How are you going to handle the payments?

A lot of systems allow you to accept multiple currencies... you could also look into updating the pricing in dollars based on daily rates for the conversions
 

figment

New Member
I guess the main thing was i was hoping to give a user a nice round attractive number and perhaps a set upgrade plan at set prices. No easy answer to this :)

I am going with one or two of the payment processors like paypal, 2co etc.
 

mneylon

Administrator
Staff member
Alan

I'd advise you to be very careful with 2Checkout.

They payments from them can take forever to reach you, plus they have that charming "holdback" fund concept, which can really sting
 

d-tour

New Member
well if the majority of your market is dollar it doesnt make sense to advertise in euro... That said you should take currency fluctautions into account with your pricing plan and charge appropriately. If you are outpricing yourself with regards to competition then you need to rethink your model - not switch to Euro.
 

Gerry23

New Member
Well if your target market is the US you should probably price in Dollars. However you might consider implementing dynamic currency conversion which would recognise the country of origin of the card and then offer them the option to pay in either their home currency or the currency that you have priced in . This gives the customer the benefit of knowing what amount is going to appear on their credit card regardless of currency fluctuations.
 

louie

New Member
What about using a currency converter on your website.
Price the product in Euro and give the option to find out how much is going to cost in different currency.
 

frazer

New Member
Selling to the US

In my view the majority the US would not purchase in any other currency we would be afraid to purchase in the Zimbabwe dollar (because we don't trust it as a measurement). I also beleive the US dollar has been higher than it should have been for years and is now correcting. It is very unlikely to be allowed to devalue more than another 10% . Central banks will if need be step in and buy dollars on mass at this point to protect global trade.

If you knew your likely sales and they are over 5,000 EURO it is possible to set up a forward contract to have a dollar rate for three months time with a currency broker. I use Foreign Exchange - Axia Fx Foreign Currency Specialists in London.
 

georgiecasey

New Member
Aaaargh! The exchange rate is killing me. It's hard to fathom that I'd instantly make over 50% extra if the dollar was devalued.

For the moment, I'm hoarding dollars in my paypal account until something improves.
 
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