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by ashleyw 5556 days ago
As someone who lives in the UK, I almost see dollars as monopoly money, I just can't easily interpret the value properly. For example, if something I wanted was $10, I'd snap it up, whereas if it was £5 (~$8), I'd think twice. You'd think it would be the other way around given that each pound is worth more than a dollar, but I guess you just give greater value to the currency you use everyday.

Though I wonder, would you generate more sales selling a product for £6, than you would selling it for $9? And could you switch your pricing from $9 to £9 (~$14.71) and maintain a similar conversion rate?

1 comments

Businesses do that every day. Look at the price of a book which often has two or more currency prices on it. Of course, what happened here in Canada is that stores started offering discounts or "US Pricing" models when our dollar went up. If we're to nitpick we're talking physical items which have associated local costs involved (local staff, local vendor space leases, local energy costs, etc.) whereas here we're talking electric bits and bytes. However, in sales and conversions, it's all the same... no?

I have to admit, I was looking at Grahl Software's PDF Annotator which is listed at $69.95USD but when I went to the site it said C$79.95 (using my IP to give me a price). Did I convert? No. I was turned off. That's 19% more expensive than if I used a US IP. I've a feeling, only from my own experience, that different currency prices in a flat-earth internet environment is a big turn off for consumers.