Spending Power in USA

[Porky]

If i sell something in the USA for $100 USD I appreciate that after conversion i would get back about £74.

But does a family spending $100 USD on a gift feel the same in relation to income as we would here spending £100 on a gift? is this making sense?

Im trying to gauge price pain threshold on a product sold in the UK v selling the same product in the USA.

Could I get away with charging more for same product in the USA ?

 

[Paul Kelly ICHYB]

It depends.

Remember, in the US, generally, sales tax is not shown at POS, so maybe not as relative.

I am not sure how it is handled online for local sellers, though, which might impact things.

 

[AlanJ1]

It will be totally product dependent and competitor dependent.

Really good point from Paul on sales tax as this varys depending on location in the USA!

 

[DontAsk]

According to my US disti, they still have the same psychology of $99 being cheaper than $100, etc., so you do need think about price points in that respect. That may be more important than the absolute price compared to £. You might be able to round a £70 item up to $99, for example, and still be competitive. Relatively few will go to the trouble of looking for the UK price, especially with the current tariff regime.

 

[Paul Norman]

We have had a few USA potential sales where the customers are entirely unaware of their nations's tarriffs structure, and certainly not aware that they will have to pay the tariffs on the goods.


Not a massive problem for us, as we make very few sales to the USA anyway.