March 11, 2019

Ask IH: Should I set prices in dollars or my home country?

Hi all,

I received good advice from people about pricing a beta product. One other factor I want to be clear. Is it best to set the price currency to USD or my home country? I'm from the UK and the currency here is in pounds. Will this affect my business in a bad way?

I say this because I see most business setting prices as dollars. And there are more people holding dollar money (than pounds)?

Thanks.

  1. 2

    Perhaps you could code in a check upon the visitors IP. If it's from the UK, show UK prices. US? Then show dollars. I don't think people mind but that is just my feeling

    1. 1

      Perhaps, that's a good idea. I think, for now, setting it dollars would be the best option. And then when I start to see traction with the service, then I might use a location tracker API.

      Cheers :)

      1. 1

        It also depends on your target customers. Are they in your home country? If so, keep it consistent. Best of luck!

  2. 2

    Where do you expect most of your customers will be? Currency should follow the currency your customers use.

    But if it is such a big issue, you should allow customers to select the currency.

    Or detect their region and show the currency to charge based on their region.

    Third point, I don't think the customers really care. Most people know that a price of 13 USD is as reasonable as a price of 10 GBP. Why? Because they're equivalent.

    But even if they're not, then we have the issue pertaining to purchasing power, behavior, perceived value of something which can be affected by status of the economy in which your potential customer resides.

    Focus on the more important things such as product features, business development, marketing, etc.

  3. 1

    The simplest way is to identify the user origin and display him the relevant pricing. I believe most of the payment gateways can help you achieve this. Which payment gateway are you using/planning to use?

  4. 1

    Follow your customers. I first had pricing in Euros but once I figured out that 75% of my customers were in USA then changing to dollars was a no-brainer. I still kept Euros as an option but pretty much no-one chooses it, even the Europeans.

  5. 1

    Who do you think majority of customers will be? If it's an online company with digital product I would set it to dollars.