I’m disappointed

Pricing Wizard is Broken

Your pricing guide is messed up...I tried 100% margin and was told the max is 85%; when I tried that, prices were set to INF. When I tried 84% the prices were set to thousands of dollars.
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this question
  • Ahmad (Official Rep) January 06, 2010 02:28
    Hi Dan,

    We are aware of this confusion, and are working on that, but the system is not broken. Let me explain.

    We calculate the profit margin from the sales price, not cost. Let's say you sell a photo for $100. We tell you how much of that $100 is your profit. Since you always have some cost (15% + print cost), it's impossible to have 100% profit (to get all $100 back).

    Like I said, we know this wording / system is confusing for some users, and it will be fixed in our V2 of pricing wizard.

    Hope it helps.

    • ok, ok..you're saying that my profit is a function of the price of the item sold; it is not a function of the cost of the piece, therefore, the concept of margin does not apply as there are no fixed costs.

      The confusion stems from your (very poor) choice of words to describe your pricing model.

      Additionally, I have absolutely no idea what this sentence means:
      "Since you always have some cost (15% + print cost), it's impossible to have 100% profit (to get all $100 back)."

      is it:
      a) As our fees are a percentage of the selling price and are not capped it is not possible to double the cost of an item since there is no cost to double.
      b) Our fees are a combination of a fixed cost plus a percentage of the selling price.
      c) Our fees structure is complex and byzantine and we can't tell you what it is because we don't know what it is--though we're you're partner...we always have our hand in your pocket.
      d) Because we incur costs in setting up and hosting your account and providing you with a substantial web presence without any fees we earn our money by assessing a fee that is a percentage of your sales--actually it is a percentage of each sale.
      e) Our initial fee structure was overly rigid and we are working on v2 of our pricing model which, instead of calculating fees on a per-transaction basis will charge you fees on an aggregated (monthly) basis; this is thus an incentive to increase sales and a benefit from such an incentive that is not possible in a per-transaction model.
      f) something else entirely.

      Am I close?
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