14 Feb 2012
Lowest Price Guarantee - To Pay Commissions or to Make a Discount?
News
Inspired by Pumpers descriptions, and also suggested by CGShape, we implemented Lowest price guarantee feature that will allow sellers to inform customers about lower prices. When you use this feature, customers will see this text at the top of your product page:
This 3D model is X% cheaper on CGTrader.com than anywhere else.
This feature is useful only if you have the same product on other 3d stock stores as well. Many of you might think - very smart, but why should I lower the price? Well, first of all, because this can considerably increase your sales. It is a myth that customers who buy 3D models are not picky in prices. There are plenty of small studios and hobbyists around the world who care for even $10 difference. Not to mention the efforts they will have to put to make the model suitable for their needs. So be sure, customers are more likely to buy if the price is really tempting.Ok, thats one side of the story, but is it worth to make lower prices here, on CGTrader? Compared to commission based stores it does, even if your model costs as low as $20.
Lets calculate. I put three tables: in the first two tables are shown royalties you get after various commission percentages are taken (before and after 30% IRS tax), and the third table shows royalties you would get in CGTrader if you lower the price and pay $5 activation fee.| Without IRS Tax | With 30% IRS Tax | ||||||
| 40% | 50% | 60% | 40% | 50% | 60% | ||
| $20 | $8 | $10 | $12 | $6 | $7 | $8 | |
| $50 | $20 | $25 | $30 | $14 | $18 | $21 | |
| $100 | $40 | $50 | $60 | $28 | $35 | $42 | |
| $200 | $80 | $100 | $120 | $56 | $70 | $84 | |
| $500 | $200 | $250 | $300 | $140 | $175 | $210 | |
| $1,000 | $400 | $500 | $600 | $280 | $350 | $420 | |
Royalties after commissions percentage (before and after 30% IRS tax)
| 10% | 20% | 30% | 40% | 50% | |
| $20 | $13 | $11 | $9 | $7 | $5 |
| $50 | $40 | $35 | $30 | $25 | $20 |
| $100 | $85 | $75 | $65 | $55 | $45 |
| $200 | $175 | $155 | $135 | $115 | $95 |
| $500 | $445 | $395 | $345 | $295 | $245 |
| $1,000 | $895 | $795 | $695 | $595 | $495 |
Royalties on CGTrader after the discount and $5 activation fee
Its easy to see when and how much you should lower the prices. For example if you sell 3D model for $100 on CGTrader you will get 95% of royalties after paying $5 activation fee. Compared to Turbosquid where you get only 40%, on CGTrader you can make a discount by 50%, and still earn $5 more ($45 on CGTrader vs $40 on Turbosquid). You also can expect to double your sales rate. And if on other stores you pay IRS taxes on top, then the margin is even bigger. As they say, it's how much you earn at the end of the month.
To make the discount and text appear on 3D model page, use Lowest price guarrantee button, then enter percentage in the discount field. The Result price will show you the final price.
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