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OK I know many will say 'well duh' to the following but it's something that didn't occur to me until recently.
I have a couple of websites that steadily sell digital products. for up to $49 aud. I noticed that my sales were generally from all over the place, mostly America and Europe, so decided to experiment with pricing.
We all probably know the logic between keeping a product at $48 to feel better priced than the same product at $50 - but I noticed that as of lately the US dollar has been pulling away from the Aussie dollar (well, over the last year).
I switched the currency to $49 USD and to my surprise it had no adverse effect on sale numbers (albeit they're relatively small anyway) and Australian sales actually increased.
I came to the conclusion that either
1) the psychology of pricing transcends currencies. 'just 49 bucks' seems universal if your product has value. Or;
2) people don't generally translate their purchases to other currencies when making a purchase or perhaps even find a higher price easier to digest if it's on the back of a currency exchange.
Either way, the simple change translates to $64 from every $49 sale. That's the equivalent of an extra sale for every 3.2 sales. Not a huge amount, no, but it's exponential. The higher the value, the higher the benefit. Obviously won't work for some business models, especially if you have a domain tied to a country or have local basis as a key usp but possibly something worth considering depending on where you're situated and the tax arrangements and the type of product you're selling.
I'll be flipping it into british pounds next which on paper represents up to 45%. It hinges on the need and desire for your product but once you get that it may be worthwhile not tying yourself toa country in a boarderless market
I have a couple of websites that steadily sell digital products. for up to $49 aud. I noticed that my sales were generally from all over the place, mostly America and Europe, so decided to experiment with pricing.
We all probably know the logic between keeping a product at $48 to feel better priced than the same product at $50 - but I noticed that as of lately the US dollar has been pulling away from the Aussie dollar (well, over the last year).
I switched the currency to $49 USD and to my surprise it had no adverse effect on sale numbers (albeit they're relatively small anyway) and Australian sales actually increased.
I came to the conclusion that either
1) the psychology of pricing transcends currencies. 'just 49 bucks' seems universal if your product has value. Or;
2) people don't generally translate their purchases to other currencies when making a purchase or perhaps even find a higher price easier to digest if it's on the back of a currency exchange.
Either way, the simple change translates to $64 from every $49 sale. That's the equivalent of an extra sale for every 3.2 sales. Not a huge amount, no, but it's exponential. The higher the value, the higher the benefit. Obviously won't work for some business models, especially if you have a domain tied to a country or have local basis as a key usp but possibly something worth considering depending on where you're situated and the tax arrangements and the type of product you're selling.
I'll be flipping it into british pounds next which on paper represents up to 45%. It hinges on the need and desire for your product but once you get that it may be worthwhile not tying yourself toa country in a boarderless market
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