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Clickbank Outside The US?

by JRemington
9 replies
Hey was just wondering...

I was happily pricing away my new product destined for a European market when I got to the testing payment point.

I say the price is €29 and when I tested I realise they get to the checkout and it's €34.98.

As you may have guessed this is due to VAT being imposed outside the US.

So I've lowered my price so the total at checkout is exactly what I claim it is on the sales page. But then I realise that if someone outside of this VAT region wants to buy the product then the price will be different again! :rolleyes:

After all, seeing a different price to the one claimed in the sales pitch is a good reason for inexperienced buyers to get scared and run away

At least now I understand why I get less sales than I get order form impressions. I am losing sales probably due to this add on which freaks some buyers out.

And in fact, this concerns any CB vendor out there, and even CB affiliates.

How do you deal with the tax addons in other countries and the potential loss of sales?
#clickbank
  • Profile picture of the author wizzard74
    Originally Posted by JRemington View Post

    Hey was just wondering...

    I was happily pricing away my new product destined for a European market when I got to the testing payment point.

    I say the price is €29 and when I tested I realise they get to the checkout and it's €34.98.

    As you may have guessed this is due to VAT being imposed outside the US.

    So I've lowered my price so the total at checkout is exactly what I claim it is on the sales page. But then I realise that if someone outside of this VAT region wants to buy the product then the price will be different again! :rolleyes:

    After all, seeing a different price to the one claimed in the sales pitch is a good reason for inexperienced buyers to get scared and run away

    At least now I understand why I get less sales than I get order form impressions. I am losing sales probably due to this add on which freaks some buyers out.

    And in fact, this concerns any CB vendor out there, and even CB affiliates.

    How do you deal with the tax addons in other countries and the potential loss of sales?
    There's nothing you can do other than making customers aware that there is tax on top, if they are a business, then they may be able to claim the tax back.
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  • Profile picture of the author Chad Evans
    Banned
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  • Profile picture of the author Gijsbertus
    It's getting even more annoying for someone like myself who has got a VAT number (I live in Belgium) and logically I am allowed to deduct the VAT for my business purposes.

    But where can you claim an official invoice that mentions the VAT numbers of both parties (seller/buyer) ...

    I already tried to solve an issue like this but could not get it done.

    The only one who applies this VAT rule is Clickbank, I guess ?

    I am not buying there anymore.
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    • Profile picture of the author wizzard74
      Originally Posted by Gijsbertus View Post

      It's getting even more annoying for someone like myself who has got a VAT number (I live in Belgium) and logically I am allowed to deduct the VAT for my business purposes.

      But where can you claim an official invoice that mentions the VAT numbers of both parties (seller/buyer) ...

      I already tried to solve an issue like this but could not get it done.

      The only one who applies this VAT rule is Clickbank, I guess ?

      I am not buying there anymore.
      No not just clickbank, unless there is some special arrangement, all companies should be adding VAT for non US customers.
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  • Profile picture of the author MCGeorges
    You'll notice that a high ticket item might sell better than a lower priced product.

    The price is not always an issue, people have to pay taxes anyways.

    How do you deal with the tax addons in other countries and the potential loss of sales?
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    • Profile picture of the author Centurian
      Since there is not a good workaround, the best way to deal with pricing issues is in your sales copy.

      One technique is to show higher total price, then state a discount for non-VAT countries. This can still make VAT purchasers feel cheated. If the product is hot enough though, they'll still buy.

      The other strategy is to clearly state price of product, then show "VAT required by law for EU residents. Sorry." It's still not perfect, but at least the explanation is clear.

      The larger issue is not VAT. It is perceived value and pricing. The key is to create a higher perceived value. If your product sells for $47, then build it and package it to show the value is $500 or $5000. Then no one cares if it's 54 euros.

      As you know, you can do this best by focusing on the results of using your product. What outcome is there after you get the results of applying your strategy or product.

      Additionally, you can increase perceived value with additional products, services, or bonuses that don't cost you much, but add greatly to the value. Think about what other benefits your product has. You may have additional aspects such as time savings, no need to learn or use technical details, automation vs. manual, etc.
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  • Profile picture of the author JRemington
    Ok thanks to all for your comments.

    I am going to test by lowering my price so the total including VAT is exactly my sales price.

    And if ever the total VAT is less then this should result in a sale as the buyer may think he or she has somehow got a deal and is paying under the sales price.

    All this tax money had better go to a new concert hall near me!
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    What you're not selling your products in different languages yet?
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  • Profile picture of the author Alexa Smith
    Banned
    Originally Posted by JRemington View Post

    How do you deal with the tax addons in other countries and the potential loss of sales?
    I don't. It's not for me to deal with.

    Prices, on the order page, are displayed in local currency, showing clearly the vendor's price and the VAT, as separate items which are then totalled to produce the amount payable.

    People in countries where VAT is charged are used to this. It's completely normal.
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    • Profile picture of the author FredJones
      Looks like the others have suggested what I would - simply announce, in an open and honest mode, that there's a VAT in certain countries and the customer may be required to pay that.

      And in the meantime, test price points of your product so that you reach your possible point of satisfaction given the constraints.
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      • Profile picture of the author DaveWildash
        I put an asterisk beside the price on the sales page then at the bottom of the page put:

        *Please note UK and EU countries are subject to applicable taxes.

        I can't recall having any customer complaints about the added VAT.
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