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Canadian sellers, do you revise prices in USD?
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GoldenStoneBazaar



Posts: 10

PostPosted: Sun Jan 25, 2015 1:21 am    Post subject: Canadian sellers, do you revise prices in USD? Reply with quote

I have a question for Canadian sellers:

If you buy supplies in Canada and know your costs in CND, how to set price in USD without losing too much on currency fluctuations? Currency exchange rate may fluctuate 20%.
Or do you revise prices in USD once a month or so, in order to keep up with changes? Is it allowed at all?

Thanks.
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viewfinders



Posts: 1561

PostPosted: Sun Jan 25, 2015 9:56 pm    Post subject: Reply with quote

Do you mean supplies you use in creating handmade items such as beads, fabric, etc.? Or do you mean mailing supplies such as envelopes, boxes, copy paper etc.?

Either way I'd use the exchange rate in effect when you pay the bill. Even if the rate goes up or down a lot, you still only paid the amount charged you at the time of purchase. That amount is fixed until you need to reorder.
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SheilaDeesPostcards
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Posts: 4614

PostPosted: Mon Jan 26, 2015 6:41 am    Post subject: Reply with quote

I'm not a Canadian seller, but I am a seller who has sold products for several decades that were created from multiple products. I understand your question and it is a very reasonable one. My suggestion would be to establish a Canadian price for every item in your store based on your cost of supplies. That would be your base you would use to set your US and AU prices. I would strongly suggest you keep a spreadsheet to show the cost and established Canadian retail prices.

In your eCRATER admin section under options, make sure you have "Enable AUD currency" checked AND make sure you have "Do not auto convert prices in other currencies" checked. (Later, if you add shipping to the UK, you would want to also to check "Enable GBP currency".) This will allow you full control of both the US and AU price.

I feel you already know how to set your US price based on your Canadian price. Right down the multiple you used and use that as you add new items to your store. It's important that every new item added use the same multiple used by the other items in your store. When you see that the Canadian to US exchange rate has changed significantly from the rate you were using, you will know the exchange rate that has been used for all your items. If you need to increase all your US retail prices by 5% to receive the same Canadian retail, use the Global Editor to change all your US prices. Since you used the same exchange rate for every item in your store, you can do a store wide Global change. You would select "Apply to*: All Categories", "Action*: set price", "Operator*: * (to multiply), User Value*: 1.05". This will increase every US price in your store by 5%. If you needed to lower your prices by 5%, you would do the same except you would use 0.95 for the User Value.

When the exchange rate changes between the CA and AU dollars, you would use the same procedure except your Action would be set AU price and your "Base:" will be "Price in AU". You will be determining the amount you need to increase or decrease your AU price (to correct for the current exchange rate between CAD and AUD) and multiply the current AU price by the value you enter.

The Global Editor can be run as often as you think necessary, but you should give yourself a little "wiggle room" so you don't go crazy with trying to get the exact rate.

Moonwishes sets her own rates for her US and AU stores and she has followed the rate exchange between the USD, AUD and GBP for several years. She'll hopefully share a little more info on what she takes into consideration for a rate change.

Your most important thing to keep in mind is to establish your own Canadian Base Retail price because this is the number you will use to determine the amount you need to increase or decrease your prices.
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cosmicray



Posts: 7286

PostPosted: Mon Jan 26, 2015 7:09 am    Post subject: Reply with quote

Checking the USD-CAD charts, there has been considerable fluctuation in exchange rate over the past 12 months.

Back in July the rate was 1 USD to 1.065 CAD.

Currently the rate is 1 USD to 1.245 CAD.

That's good if you are selling to the USA, but bad if you want to buy from the USA.
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MoonwishesStore
moderator


Posts: 17389

PostPosted: Mon Jan 26, 2015 9:52 am    Post subject: Reply with quote

Quote:
Or do you revise prices in USD once a month or so, in order to keep up with changes? Is it allowed at all?


Of course it is allowed. You can change your rate every day if you feel like it, but not really necessary.

Since I'm in the US, I set all my prices in US dollars. Generally any Canadian orders come through in USD with my Canadian shipping parameters. So I don't adjust anything for that nor is there a way to change Canadian prices without changing US ones, but going the other direct you can do it as you can adjust US prices via the global editor. This is how you also put things on sale if you feel the need but I've found to be pointless here.

What I do for my UK and AUS stores is set up a multiple to bring the price to the same range as my US one. The AU exchange has been crazy lately! I usually refix my exchange rates when I get an international order that the prices aren't as close as I would have liked them to be. I just go to google and search currency exchange and usually a handy little app pops up that is easy to use. BUT you can't just take that as the right exchange to use. Somewhere between what you want the price to be and what PP gives you they seem to take a tiny scoop out of the price with no accounting for where it went so I always have to give the rates a couple extra pennies so things work out and I'm not losing money. I figure it out by doing several math problems until I get it right, but then I like doing that sort of thing Very Happy

If I have to change the rates on one or both I use the global editor. I also keep a 'cheat sheet' of the different calculations that I need for new listings so I'm setting the UK and AU prices correctly while listing new items between global edits, and as Sheila said I also have written down what the amount is I'm currently using. The global editor is easy to use as long as you remember to put a zero in front of a rate that is less than a dollar so you need 0.68 not .68 or 68 whish is my current UK rate as of last week and this one I'm using 1.29 for AU. Like I said the AU rate is crazy, between one change and the next AU order, I lost almost a $1 on the price of the item in barely a month since the last adjustment, so you do need to keep an eye on things and obviously I hadn't as close as needed. But as I said before you can do a global edit as often as you need to.
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MaggietheCatsMeows



Posts: 2853

PostPosted: Mon Jan 26, 2015 9:07 pm    Post subject: Reply with quote

After reading the responses I went back and reread your original post thinking I had misinterpreted your post. (Viewfinders) I don't think I erred.

If it cost you $5.00CA in supplies to make an item and you are going to sell the item for $15.00US, you should have calculated the exchange rate based on the rate at the time you purchased your supplies and established the $15.00US cost to buyer based on that.

If it would now cost you $5.75CA to make the same item but you are still using the same supplies you do not change the selling price because the exchange rate is different. Only when you purchase more supplies do you change the price of the newer creations based on the new cost to make.

If you owned a dress shop and bought 10 dresses at $50CA each wholesale and plan to sell them for $100, you do not raise the price on those dresses because the exchange rate changed. You only raise the price if you reorder and have to pay a higher wholesale cost.

Setting up AU and UK stores is different. Truthfully I can't be bothered keeping track of the exchange rates and allow eCRATER to set the exchange rate for me. Financial institutions have whole departments that do nothing but keep track of currency fluctuations. I can't even balance my own checkbook. But those rates are based on the exchange with the US $ nothing to do with the Canadian$. If you have set up a comfortable selling price for your items and have your shipping matrix set up for Canada Post shipping, the system will take care of the exchange rate.
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GoldenStoneBazaar



Posts: 10

PostPosted: Wed Jan 28, 2015 4:37 am    Post subject: Reply with quote

Thank you all, it was very helpful!

1. Use global editor for corrections.
2. Make corrections after sale shows that exchange rate changed too much, not monthly, as somebody here did for AUD.
3. Ideally, write down exchange rate when buying supplies.
4. Rely more on marketplaces that have an option of CND defaults.

With supplies, this would be a problem, it will take too much time, if possible at all:

3a. Tracking and calculating time:
Some supplies (for handmade and boxes) were bought a couple of years ago, some few months ago, amount used is averaged for all products and calculated once an year (periodic inventory).

3b. Different exchange rates for supplies, got at different time, and exchange rates are usually available for today or for the past year at unrealistic rate, at my knowledge.

Even if I start making tables of exchange rates each time I bought supplies, untangle and recalculate for each supply, in amount used this year, will be unaffordable as unpaid time losses. This will be not a business (no profit), and not a hobby (for the fun of it).

Sigh. Live and learn.
But thank you again, it helps.
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GoldenStoneBazaar



Posts: 10

PostPosted: Wed Jan 28, 2015 4:50 am    Post subject: Reply with quote

viewfinders wrote:
Do you mean supplies you use in creating handmade items such as beads, fabric, etc.? Or do you mean mailing supplies such as envelopes, boxes, copy paper etc.?

Yep, leatherwork at small scale: leather (several hides), dyes in several colors, variety of threads from different sources, variety of conditioners, finishes, tools, equipment, disposable supplies. Packing and shipping materials are easier: single variety if each, bought no longer than year ago, with more or less uniform prices.

When part of hide and part of bottle was used this year, it recalculated to include in cost of finished product, that could be not expensed until they are sold. It's a headache.
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maggiethehousecat



Posts: 2457

PostPosted: Wed Jan 28, 2015 1:43 pm    Post subject: Reply with quote

It sounds to me like you are trying to get things down to the penny. If so you are asking for a migraine.

When eCRATER makes the exchange rate for you between AU, UK and US$, my understanding is that they are generous to the seller since PayPal takes a larger percentage commission for non US$ payments.

But I repeat your exchange rate between CA and US $ is only of concern when you set your price and shipping matrix. The CA$ does not enter the equation once that is done.
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MoonwishesStore
moderator


Posts: 17389

PostPosted: Wed Jan 28, 2015 4:19 pm    Post subject: Reply with quote

Unless all those supplies are coming in from the US, I wouldn't even think about the exchange rate when setting my prices from the costs of products. Just set them as if all sales would happen in Canada. But when listing, you do want to know what the current exchange is so you can set your US rate right so that a sale will bring you what you need in CD dollars.

I went to college in Canada so got used to the the loopdeloops that happened with the currency in the four years I was there. No matter what the exchange rate was, US students weren't being charged a different amount for our books and tuition. We were charged what the Canadians and international students were charged. However some of my money for tuition came to me in US dollars (and I worked like a dog on campus paying for the rest) and I would have to take the check to the bank and get it exchanged to CD dollars and then hand that Canadian money to the treasurer of the college. It was always a nice day when US money was worth more so more of my bill was paid off and a sad day when it was down and it paid less and so thankful colleges did things like letting you pay monthly back then! Price in Canadian didn't change, but the US money value did, and it needed to be exchanged to pay a bill in Canadian currency. Hopefully that example helps you think it through a bit.

I think you are maybe overthinking it a bit. Just ignore the cost of the goods until you actually are setting the price for the item. How much do you want to make? THAT is the price that you have to be sure that the exchange from US to Canadian dollars will come to that amount.
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thelivesandlovesofmaggiethecat



Posts: 10158

PostPosted: Thu Jan 29, 2015 12:54 am    Post subject: Reply with quote

GoldenStone I just looked at your store and your shipping. I think you are treading a fine line.
Small packet to 250 grams is $8.13CA to the US. You are only charging $8.20US.

At the price of your items I think you would be wise to insure them from someone like insurepost.com ($1.50US per $100) I have had no problem with loss and your items aren't breakable but your product line might be attractive to tough guys who might pull a fast one on you claiming non-receipt. You can build the insurance fee into your shipping charge.

Also you charge $12.74 within Canada. I live in Vancouver and when I ship to Ontario where you are, the minimum package rate I can get is $15+CA. I haven't checked since the rates went up last week but they didn't go down.

If you prefer to absorb the extra shipping in order to stay competitive, that is your business but if you think your shipping is going to cover your costs you are wrong.
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movie-inspired-jewelry



Posts: 9

PostPosted: Sun Apr 19, 2015 2:47 pm    Post subject: Can someone please help me Reply with quote

Within the month, any sales I have had, when the person pays through paypal, it is coming through as Australian dollars. I then have to go to paypal and convert.

I am located in the United States and have no idea how this has changed in Ecrater.

Any help would be greatly appreciated to save my sanity and my pocketbook as I am losing money on these sales.
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maggiethehousecat



Posts: 2457

PostPosted: Sun Apr 19, 2015 3:05 pm    Post subject: Re: Can someone please help me Reply with quote

movie-inspired-jewelry wrote:
Within the month, any sales I have had, when the person pays through paypal, it is coming through as Australian dollars. I then have to go to paypal and convert.

I am located in the United States and have no idea how this has changed in Ecrater.

Any help would be greatly appreciated to save my sanity and my pocketbook as I am losing money on these sales.


That is a glitch you need to contact eCRATER admin about.
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cosmicray



Posts: 7286

PostPosted: Sun Apr 19, 2015 3:20 pm    Post subject: Re: Can someone please help me Reply with quote

movie-inspired-jewelry wrote:
Within the month, any sales I have had, when the person pays through paypal, it is coming through as Australian dollars. I then have to go to paypal and convert.

I am located in the United States and have no idea how this has changed in Ecrater.

Any help would be greatly appreciated to save my sanity and my pocketbook as I am losing money on these sales.

Because you have an Australian store front.
http://movie-inspired-jewelry.ecrater.com.au/

US customers are seeing your items via that store front (or via the Aus marketplace), and placing the order there.
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movie-inspired-jewelry



Posts: 9

PostPosted: Sun Apr 19, 2015 3:33 pm    Post subject: Reply with quote

Would you happen to know how I would change to a US store? I am listed in my account info as United States. Everything was working fine until over a month ago......

Last edited by movie-inspired-jewelry on Sun Apr 19, 2015 3:44 pm; edited 1 time in total
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