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Doug Nebeker ("Doug")
If you have a reasonable number of customers I suggest you do some A/B testing. Show some visitors to your web site the higher price and see what happens to the conversion rate, does it go down or up?
What payment processor are you using? If you can tweak the exchange rate from USD -> Euros those customers in the eurozone may not have the perception that they are being charged more as you are only talking about 10% which is likely to be 1 or 2 euros for most software products
Are you segmenting your market as Joel says in his "Camels and Rubber Duckies" article?
I have also used the ratio of sales of standard vs premium editions to decide on price changes - you can look at the absolute figure, compare the ratios between US and Euro markets and also graph the ratio over time.
But definitely do the A/B testing as the answer depends on your product, your position in the market, your competitors etc as much as the relative strengths of the US and Eurozone economies.
We used to change our Euro prices after each substantial change in exchange rates and had no complaints. Then we decided it is too much trouble and dropped Euro prices altogether - again, no customer complaints.
But if you do not want to risk offending your existing customers, don't. Let them continue paying the same amounts in the same currency for upgrades, maintenance contract extensions, and extra licenses. Only change prices for new customers.
That said, what are you going to do if the USD/EUR rate goes the other way in a year or two? Over the course of ten years it oscillated between 1.1 and 1.5 multiple times:
Tuesday, February 17, 2015
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