Price in EURO rather than USD$ due to changing economic climate?

by Anthony Hull 23 replies
Hey warriors,

I'm going to be launching a membership site shortly offering monthly affiliate review sites (shameless plug) and my business partner had the idea of charging in Euros, rather than the usual USD.

The reason for his thinking was that the USD may become worth less and less over the coming months/years and therefore our income from the membership site will dwindle over time.

Since the Euro is currently in a stronger position, should we start using it and ditch the dollar?

Obviously the main problem is that most people that buy IM products are most familiar with paying in dollars, since it's the "Internet Currency".

What do you guys think? :confused:

Cheers,

Anthony
#main internet marketing discussion forum #changing #climate #due #economic #eur #products #selling #start #usd$
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  • Profile picture of the author Richard Tunnah
    Hi Anthony,
    Obviously you need to test things for yourself. However a few years ago I tested charging in different currencies for various products I sold on ebay. I found that charging in USD for global products met the least resistance and the highest amount of sales. I think USD has become the default online currency to be honest.
    Good luck.


    Rich
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    • Profile picture of the author Anthony Hull
      Originally Posted by richt1971 View Post

      Hi Anthony,
      Obviously you need to test things for yourself. However a few years ago I tested charging in different currencies for various products I sold on ebay. I found that charging in USD for global products met the least resistance and the highest amount of sales. I think USD has become the default online currency to be honest.
      Good luck.


      Rich
      Thanks Rich - I agree with you... most people are just not used to buying things in Euro are they.

      Also, I think I must be stupid, I just read another post:

      http://www.warriorforum.com/main-int...-currency.html

      Since I'm in the UK, a weakening dollar actually means I'll earn MORE money, when converted to Sterling, not less money lol!

      Cheers,

      Anthony
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      • Profile picture of the author Alexa Smith
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        • Profile picture of the author Kim Standerline
          Originally Posted by alexa_s View Post

          You're right, of course. With no criticism of anyone intended, it's sometimes a little difficult in this forum to discuss this matter without running into "discussions" which seem somewhat to confuse people perhaps unfamiliar with currency exchanges.

          My own guess is that in the long run you'll gain far more by charging in the more secure currency than you'll potentially lose because people are used to paying in dollars (I wouldn't think, these days, that that will be enough of a big deal to lose many customers). Just my two cents.
          Hey Alexa

          I know the discussion you're referring to and he was right lol

          It is easy to get confused tho,

          Kim
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          • Profile picture of the author Alexa Smith
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            • Profile picture of the author John Henderson
              Newbie question alert!

              Anthony,

              From what I can see, payment processors like PayPal are able to accept many currencies. Is there a reason why you couldn't quote your prices in USD and Euros?

              Yours ignorantly,
              John.
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            • Profile picture of the author Carol666
              I think that most people who buy thinks online are used to seeing prices in US Dollars.
              I would purchase in either US dollars or Sterling.

              But if you priced something in Euro's or Swiss Francs (or any currency that is not your own) I would run a mile. I would think there was something wrong with your company. Wonder if you have had trouble in getting a UK bank account. Or perhaps you are doing it to avoid tax or..........for other dubious reasons.

              I would not trust anyone unless they sold in their own currency or US Dollars. As mentioned earlier US Dollars are recognised as the 'internet currency'.

              Carol
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        • Profile picture of the author zephyrwriting
          Originally Posted by alexa_s View Post

          You're right, of course. With no criticism of anyone intended, it's sometimes a little difficult in this forum to discuss this matter without running into "discussions" which seem somewhat to confuse people perhaps unfamiliar with currency exchanges.

          My own guess is that in the long run you'll gain far more by charging in the more secure currency than you'll potentially lose because people are used to paying in dollars (I wouldn't think, these days, that that will be enough of a big deal to lose many customers). Just my two cents.
          Seeing as neither the Euro nor the USD seem to be all that stable, maybe we should use Swiss Francs?

          Or is that not as stable as it used to be either...

          Worst case scenario I guess we could resort to Monopoly Money.

          -Vish.

          ps: On a more serious note, all I mean is that it seems like the future of most every currency is dubious at the moment.
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    • Profile picture of the author Tuzic
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      hi,

      test it yourself and see what works, but usually people uderstand the $ better.
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  • Profile picture of the author KarlWarren
    Converting $ to £, you're in a better position now than a few months ago...
    It's only when buying in dollars that you're in a weaker position.

    So, if you're charging in dollars and converting to your own currency, you're actually earning more now than you have been for a while.

    I don't know how charging in Euros will go down with your members, people tend to stick with what they know best - and that's dollars in my opinion.

    Kindest regards,
    Karl.
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    • Profile picture of the author Anthony Hull
      You hit the nail on the head Karl

      Thanks for screwing my head on the right way.

      Anthony

      Originally Posted by KarlWarren View Post

      Converting $ to £, you're in a better position now than a few months ago...
      It's only when buying in dollars that you're in a weaker position.

      So, if you're charging in dollars and converting to your own currency, you're actually earning more now than you have been for a while.

      I don't know how charging in Euros will go down with your members, people tend to stick with what they know best - and that's dollars in my opinion.

      Kindest regards,
      Karl.
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      • Profile picture of the author KarlWarren
        Originally Posted by Anthony Hull View Post

        You hit the nail on the head Karl

        Thanks for screwing my head on the right way.

        Anthony
        I think you've been doing too much DIY my friend...
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        • Profile picture of the author Anthony Hull
          Originally Posted by KarlWarren View Post

          I think you've been doing too much DIY my friend...
          HAHA!

          Well spotted mate, and you're right too lol.
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    • Profile picture of the author Chri5123
      Originally Posted by KarlWarren View Post

      Converting $ to £, you're in a better position now than a few months ago...
      It's only when buying in dollars that you're in a weaker position.

      So, if you're charging in dollars and converting to your own currency, you're actually earning more now than you have been for a while.

      I don't know how charging in Euros will go down with your members, people tend to stick with what they know best - and that's dollars in my opinion.

      Kindest regards,
      Karl.
      I have noticed this too!

      I guess there is always a good side!

      All the best

      Chris
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  • Profile picture of the author Andrew Wilson
    To some degree it'll depend upon your expected churn rate.
    If folks stay with you for many months or years and you do not have new members coming in then your revenue will be affected by the decline of the dollar.
    If your members are more usual and you find they leave after 3-4 months, on average, then it is not an issue as you simply need to amend your pricing as time goes by, whilst leaving older members grandfathered in at the lower price. New members pay the inflation adjusted figure and old ones stay the same and marvel at the value they receive.

    If the dollar dives further relative to the Euro then we will become accustomed to prices that move upward when denominated in dollars so folks will not object, as they might now, to increasing prices for an item whose value might be seen to be unchanged.

    As to the general prinicapl of resistance to pricing in currencies other than dollars well, it is a matter for testing.
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  • Profile picture of the author Andrew Wilson
    Anthiny, you need to make a judgement as to the relative strengths of the currencies you use. The dollar has risen against the pound recently but the long term picture for the dollar is not great. Against the Euro the dollar looks even weaker.

    Do not fall for short term views here, you need to make a judgement for the long term. If you charge in Euros then you will probably be making a pretty stable choice and one familiar to more folks than Sterling. Sterling may well fall against the Euro for a while.
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  • Profile picture of the author derekwong28
    If your target audience is in the US, you would be taking a great risk if you price in Euros because it may put off potential buyers. Besides, the Euro is crashing against the US dollar right now because it is in the same financial mess.

    Derek
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  • Profile picture of the author seasoned
    WHATEVER YOU DO, BE HONEST!!!!!!!!!!!!

    $10 in the US is not REALLY $10!!!!! It is $10USD! WHY? Because there is ALSO $10AUD, $10CAD, etc.... Likewise, 10 isn't 10! If you price it in Euros, make that clear.

    I don't know about others, but I suspect some Americans WILL have a problem. ALSO, there is the conversion rate. If someone with a USD account buys something in Euros, they really don't know how much it will cost. At least OTHERS will know about how much the dollar will cost relative to their currency, because they have dealt with it before. Please note that EUROS may be a VERY different story! The fees to convert CAD to/from USD might very well be lower than to/from euros. You SHOULD do the conversion on YOUR side, but THEN you wouldn't be asking this question, because you would be doing them ALL.

    Steve
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  • Profile picture of the author Chris Lockwood
    This is an interesting thread considering that the euro is plunging and the US dollar is at a 13-month high:

    Bloomberg.com: Worldwide
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    • Profile picture of the author KarlWarren
      Originally Posted by Chris Lockwood View Post

      This is an interesting thread considering that the euro is plunging and the US dollar is at a 13-month high:

      Bloomberg.com: Worldwide
      Exactly...

      If the Euro or the Pound are worth LESS for each dollar earned.
      Then when I convert Dollars to Pounds, I'm better off.

      The Pound can be 1:1 against the Dollar for all I care

      I buy in Pounds, so when I withdraw money from PayPal and spend it in the shops my buying power (in pounds) is the same regardless... it just means I earn more.
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  • Profile picture of the author Chris Lockwood
    Then there's also the fact that many Americans may not be aware of what the euro is or what it's worth- I'd love to see a survey to see how many people know what that curved E symbol is... I'm guessing it would have a low recognition rate in the US.
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  • Profile picture of the author drr
    USD tends to be the authority currency in the IM niche. Unless your clients are based elsewhere, you'll probably find that it's the best currency to use.

    As a UK marketer, it is really unsettling to charge for your products & services in dollars, it's really an element of business that you cannot control!
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  • Profile picture of the author kevkos
    Originally Posted by Anthony Hull View Post

    Hey warriors,

    I'm going to be launching a membership site shortly offering monthly affiliate review sites (shameless plug) and my business partner had the idea of charging in Euros, rather than the usual USD.

    The reason for his thinking was that the USD may become worth less and less over the coming months/years and therefore our income from the membership site will dwindle over time.

    Since the Euro is currently in a stronger position, should we start using it and ditch the dollar?

    Obviously the main problem is that most people that buy IM products are most familiar with paying in dollars, since it's the "Internet Currency".

    What do you guys think? :confused:

    Cheers,

    Anthony
    Good thinking, but eventually the dollar AND euro will be worthless. Consider using a service like goldmoney.com, where you can buy and sell items using gold grams. Gold will NEVER go out of favor, as it is the only real form of money.

    Cheers,
    Kevin
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