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Pricing: I'm confused
tym
Registered Users Posts: 7 Beginner grinner
Reviewing the pricing info, I read where it states:
Your profit is calculated as 85% of the difference between the price you set and SmugMug's print prices. The 15% SmugMug retains includes credit card payment fees, customer service, and the costs of administering the program.
Perhaps I'm not understanding this, but I don't see how this can work for our prints. For example, if the our SmugMug cost for a 30x40 print is $22 and we sell it for $40, >the difference between the price you set and SmugMug's print prices< is $18. !5% of $18 is $2.70.
But, if we sell that exact same print for $80, 15% of the difference there would be $8.70--nearly 3 times the cost to us for what is exactly the same amount of work with respect to labor, materials, expenses etc. for SmugMug.
We typically sell prints only in large sizes for >$40 and given the above pricing model as I understand it, I don't see how it could work for us.
Have I interpreted the pricing correctly and is there any other way to structure pricing?
Thanks
Your profit is calculated as 85% of the difference between the price you set and SmugMug's print prices. The 15% SmugMug retains includes credit card payment fees, customer service, and the costs of administering the program.
Perhaps I'm not understanding this, but I don't see how this can work for our prints. For example, if the our SmugMug cost for a 30x40 print is $22 and we sell it for $40, >the difference between the price you set and SmugMug's print prices< is $18. !5% of $18 is $2.70.
But, if we sell that exact same print for $80, 15% of the difference there would be $8.70--nearly 3 times the cost to us for what is exactly the same amount of work with respect to labor, materials, expenses etc. for SmugMug.
We typically sell prints only in large sizes for >$40 and given the above pricing model as I understand it, I don't see how it could work for us.
Have I interpreted the pricing correctly and is there any other way to structure pricing?
Thanks
0
Comments
You are figuring it perfectly.
Please let us know if you have any other questions at all, thanks!
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Thanks for the input Andy. Perhaps at some point you'll consider an option that might work better for more expensive prints. I'd even be willing to pay double the subscription fee, but the percentage structure as it exists does not seem to work for us.
Having said that, for the markets you service does work for, it's a great mix of features and customization options. Came out on the top of the list of sites we looked at.
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