Associate
- Joined
- 28 Jan 2009
- Posts
- 6
Rob.
The pricing is so difficult right now and it has to do with exchange rates going all over the place. What I do is everyday I check the currency exchange rates and then look at my profit margin. Last week when Obama got inaugurated and a major bank in England had to get an infusion of capital the exchange rate slipped almost 10% in one day. When this happens I typically wait three days then if it stays the same I adjust my price. But this week the pound has started a rally so what I will do today is look at it at the end of the trading day and consider a price review. I honestly want to keep the price very stable, but under the current economic conditions that is not possible.
I will never truly be able to be the least expensive I have learned that if I change my price my competitors will undercut me one pound.
There are a few reasons for this.
I actually pay 3% more for my cards than my competitors. I know this sounds crazy, but I have made some choices on suppliers and over the years I have learned that the cheaper companies are not reliable for delivery (there codes are perfectly fine). What happens is I will place an order they will take it, and then three days latter I’m looking for the package to arrive and I find out when I ordered they were out but they didn’t tell me so I find myself scrabbling for codes. So about a year ago I just decided I would pay a slightly higher price for a consistent supply. The final time was I ordered my product, I was told it was going to ship, then a major retail chain needed the product and my order got bumped so they could get their stock. This is why you hear from time to time a site that normally delivers pretty quickly taking days to get the product out, the cheap suppliers run out quick (not a scam just annoying). The other problem is I can’t just purchase from the cheap guys and then when supply gets tight switch back to the guys who have them in. I need to make sure I buy from the same guys constantly because they take care of me making sure my product ships. Example right now the supply is actually tight and one of my reps called me up told me they got a large shipment in and he would hold 1300 units for me since I was a good customer, so it is worth it to pay high a bit more.
The other major factor driving price is a site that I consider my main competitor, his site is actually set up with the hope of selling the entire site to someone. So this gentleman sells basically at cost with the hope of selling the site in the future, this is not speculation on my part I have seen his site up for auction several times I think he wants like 9000 pounds for it. Nothing dishonest there but I do wonder what will happen with customer service when the site changes hands if it ever does I don’t know if anyone has purchased it.
I would also like to point out that I have said nothing bad about my competitors, they are plenty of totally legit sites out there that sell game codes, a few not so legit, but for the most part honest people just trying to make money selling codes. Each site has a niche. I have tried to make my niche on better customer service and offering some things on my site like a live forum multiple payment methods. Sure I make mistake from time to time and ship a code with a typo in it or mess up and send the same code to two people but I fix it.
As for the adam thing this actually why I send text codes. If someone tells me they are having an issue with a code I can easily just search my mail program for that text code and it will show me every message that ever went out with that code. Sending scans is pretty manageable until the site really starts doing a serious volume then you just can’t manage it. There is no way to check and see if you double sent the code without hours of work, and any site that says they have never mistakenly sent the same code to two buyers is either lying or just not sold enough codes yet. By doing text I search both access and my mail program to fix errors.
The pricing is so difficult right now and it has to do with exchange rates going all over the place. What I do is everyday I check the currency exchange rates and then look at my profit margin. Last week when Obama got inaugurated and a major bank in England had to get an infusion of capital the exchange rate slipped almost 10% in one day. When this happens I typically wait three days then if it stays the same I adjust my price. But this week the pound has started a rally so what I will do today is look at it at the end of the trading day and consider a price review. I honestly want to keep the price very stable, but under the current economic conditions that is not possible.
I will never truly be able to be the least expensive I have learned that if I change my price my competitors will undercut me one pound.
There are a few reasons for this.
I actually pay 3% more for my cards than my competitors. I know this sounds crazy, but I have made some choices on suppliers and over the years I have learned that the cheaper companies are not reliable for delivery (there codes are perfectly fine). What happens is I will place an order they will take it, and then three days latter I’m looking for the package to arrive and I find out when I ordered they were out but they didn’t tell me so I find myself scrabbling for codes. So about a year ago I just decided I would pay a slightly higher price for a consistent supply. The final time was I ordered my product, I was told it was going to ship, then a major retail chain needed the product and my order got bumped so they could get their stock. This is why you hear from time to time a site that normally delivers pretty quickly taking days to get the product out, the cheap suppliers run out quick (not a scam just annoying). The other problem is I can’t just purchase from the cheap guys and then when supply gets tight switch back to the guys who have them in. I need to make sure I buy from the same guys constantly because they take care of me making sure my product ships. Example right now the supply is actually tight and one of my reps called me up told me they got a large shipment in and he would hold 1300 units for me since I was a good customer, so it is worth it to pay high a bit more.
The other major factor driving price is a site that I consider my main competitor, his site is actually set up with the hope of selling the entire site to someone. So this gentleman sells basically at cost with the hope of selling the site in the future, this is not speculation on my part I have seen his site up for auction several times I think he wants like 9000 pounds for it. Nothing dishonest there but I do wonder what will happen with customer service when the site changes hands if it ever does I don’t know if anyone has purchased it.
I would also like to point out that I have said nothing bad about my competitors, they are plenty of totally legit sites out there that sell game codes, a few not so legit, but for the most part honest people just trying to make money selling codes. Each site has a niche. I have tried to make my niche on better customer service and offering some things on my site like a live forum multiple payment methods. Sure I make mistake from time to time and ship a code with a typo in it or mess up and send the same code to two people but I fix it.
As for the adam thing this actually why I send text codes. If someone tells me they are having an issue with a code I can easily just search my mail program for that text code and it will show me every message that ever went out with that code. Sending scans is pretty manageable until the site really starts doing a serious volume then you just can’t manage it. There is no way to check and see if you double sent the code without hours of work, and any site that says they have never mistakenly sent the same code to two buyers is either lying or just not sold enough codes yet. By doing text I search both access and my mail program to fix errors.