US Dollar value perception

[dmorison]

Whilst the actual GBP:USD ratio is getting on for 1:2; i'm interested to know what the value perception of the US Dollar is at the moment. I'm concerned that in terms of how much you get for your money; the ratio is more like 1:1.

This is directly relevant to a web service that I am offering, as i'm under the impression (based on the stats) that UK customers are thinking "Bargain", whereas potential US customers, when seeing the conversion into US dollars are thinking "Blimey, that's a lot"!

A question for those in the USA:

If an average person on an average income when out for a meal one Saturday night with 4 friends, and the bill (check) came to $200, that would be $50 each. Would your immediate reaction to having to stump up $50 be:

a) Gosh, that's expensive; couldn't we have gone somewhere cheaper?

b) $50 - that's what you pay these days.

c) Bargain - we'll be coming here again!

I think this will help...

Thanks.

[jayluv]

It would really depend on your location.
In NYC/LA/SF the major cities we would think it was just about on the money ormaybe on the low end, assuming there was not wine included. If wine/drinks ect are inlcuded, usually the tab is more around 75-100+ per person.

[choster]

Not only is there huge price variation from big cities to small towns, the general geographic region is a factor-- the cost of just about everything in the Northeast, California, or Hawaii is much higher.

But here I'd say the key is the value prospect-- without knowing what your product is, it's hard to guess what the target market thinks is an acceptable price. University students might think a $6 McDonalds lunch is extravagant while a lobbyist or pharmaceutical salesman will easily drop $150 per person at a nice dinner in a major city.

That said, $50/head is going to be high for "average" pretty much anywhere. Here in Washington, a relatively expensive city, a family restaurant chain like Applebees or Outback would have entrees in the $9-$15 range mostly, figure $2 for a soft drink, 10% DC restaurant tax and 15% gratuity.

[kevinpate]

in my lil' corner of the central US prairie, 8-18, (sans beverage,tax,gratuity) makes for a right fine feed bag in a wide variety of stables. Of course, one can easily go double, even triple or more on the high end as well. It's really just a matter of how fancy you want the table and surrouding walls to be v. how plentiful you want your helpings to be.

I've enjoyed exquisite fare in old converted petrol stations that was truly finer than frog hair. I've also endured some up-town silk stocking places where they mistakenly assumed I was so enthralled with the decor than I wouldn't notice they were serving up toddler portions that, while pretty, were quite uninspired. The inverse is also true.

[chodges84]

I'm from the UK and went to the USA last year (september), adn found the prices to be cheap. I visited NYC, Las vegas and Caliufornia, and everything seemed very well priced.

I think we picked up a macdonalds in New York City. It cost me about $4.50 with tax. This was for a chicken sandwhich with large fries. In the UK, the same meal costs me about £3.50 - £4 (i actually haven't been in ages, so i can't remember the exact price). Food in Vegas was very cheap. I had a steak with chips and peas for $5!, and it wasn't bad either, if we had of stayed another night, I would've had the BBQ selection (a rack of ribs, chicken and chips) for $8. We were only there 2 nights though. Try and find one that cheap in the UK.

Also, I picked up a Gameboy advance SP for $82, and at the time they were £69.99 in the UK.

i was reading the thread in the affiliate forum a while back titled 'The quest to $300 a day' and it got me thinking about this. $300 a day would be a very nice $109,000. the same £150 a day for a UK site would be £54,000, Whish is still a very nice sum. However, your $109,000 would go a lot further, it would buy 21,800 macdonalds at $5.00 a time, where as the same money in the UK (54,000) would buy only 14,400. Thats almost exactly a third less.

So if you're earning this much money in the UK, you will still be 7000 macdonalds worse off than an American earning the same amount (but probably thinner (or more than likely dead)).

[bnhall]

chodges84 - you must read the Economist [economist.com]

[dmorison]

....you mean the Big Mac Index [economist.com]

Thanks for the replies so far. I never really understood all those news stories I used to hear about the weak this or the strong that causing exporters problems.

Now I get it....!