International Pricing

Do US customers balk or hesitate when they see Euros pricing?

[lucidlogic]

We are thinking of pricing our service in Euros, as most of our costs are in Euros as well. With the dropping US Dollar, this is making more sense. However, 40% of our customers are US, and our current pricing is in US dollars.

Should we

a) Stay with US Dollars and simply raise our rates.

b) Switch to Euro backing, and just do a live conversion to Dollars as a displayed value.

c) Switch entirely to Euro back and Euro pricing for all to see.

[King_Fisher]

Can't you do two Geo. sites? One for the US with dollars, One for Europe with
euros. Everything else on the sites stay the same

I think that most Americans or some what provincial and the euro pricing might put them off...KF

[lucidlogic]

Actually, I think we could do a single site, that displays currency from whatever appropriate geo you are coming from.

The question then is, should we provide a nice round number?

Example:

Let us say the hard price is 10 Euros per month.
So for eu customers we show the price in euros.
For US customer we show 10 Euros -> Dollars = 14.53 US Dollars.
Do we show the price as $14.53 US Dollars, or do we show it as $15 Dollars?

I think we would show the rounded-up amount.

And we could do this with all currencies, assuming the GeoIP is accurate.

[p5gal5]

I would price it to be $0.05 or $0.03 less than the rounded-up integer:
e.g. Converted price to USD is $13.30, round up to $14 and take off $0.05 --> end price is $13.95.

I believe there has been some debate on the $X.97 or $X.95 pricing. Depending on who you are targeting and the average transaction, arguments can be made for both. Walmart tends to (or used to) use $X.97 - as most of our business is b2b, I prefer the $X.95.

Personally, seeing prices in Euros deters me from making a personal purchase. It's not that I might purchasing out from out of the country (one of our main raw materials suppliers is in Europe); however, for personal purchases (unless it's an *exceptionally* good deal, like Birkenstocks straight from Germany), I tend to want my "new toy" ASAP. Shipping from an international location takes away most of the illusion that an item will come sooner rather than later.

[lucidlogic]

Perhaps I should elaborate.

We aren't offering a good with shipping, but an online service. It is not a price competition, we are offering a premium service.

[Rugles]

Americans are reluctant to buy in any other currency. Its that simple.