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sevenspark Volunteer moderator says

I think it’s really a matter of perspective. The prepaid-credit price is actually a discounted price. Each transaction costs money; the $2 covers that charge site-wide at a flat rate. The discounted price is offered for users who make deposits. Encouraging users to make deposits promotes repeat business, and that’s good for us as authors.

I don’t think the “surcharge” deters a significant number of buyers. I think the current system is fair – and in any event, prices are already so low, I see no reason to lower them further.

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dekurvajo says

Sevenspark… :) How can be something discounted, when an item has an obvious pricing X amount, then an another obvious statement says: ADD $2 if you are not using prepaid credits. If the price would be X amount and the statement would be REDUCE $2 if you are using prepaid credits. That would be a discount.

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sevenspark Volunteer moderator says

Sevenspark… :) How can be something discounted, when an item has an obvious pricing X amount, then an another obvious statement says: ADD $2 if you are not using prepaid credits. If the price would be X amount and the statement would be REDUCE $2 if you are using prepaid credits. That would be a discount.

My point is that you can call it whatever you want; if the item were sold for a single price only, it’d have to be the higher one to cover transaction fees. But I agree that for psychological/perception purposes, it should be made clear that you’re getting a deal by using credits and not being penalized for buying one-off. I think it could certainly be clearer, and would make a positive difference. The truth of the matter is, there is a price difference between the two payment methods – and whether that difference is considered a discount or a surcharge is simply a matter of perspective.

Note that just because you are seeing “obvious pricing”, it doesn’t mean it’s not a discounted price. When you go to the grocery store and milk is on sale if you have a coupon, it says “Milk $3” in big letters. If you don’t have a coupon, you don’t get the discount, and you pay $4, which is probably listed in small type (aka add $1).

When you see a car commercial, they advertise that you can lease it for ”$200/month for well qualified buyers”. They don’t say “Hey this car costs $500/month, but if you’ve got good credit we’ll give you a discount”.

Businesses of all sorts advertise their lowest price, for obvious reasons. Qualifying for that price often requires some sort of condition be met. I think the bar is set pretty low here in that regard – just a simple deposit. But Envato is kind enough to offer both options, so customers can choose which suits them best :)

Also, I can second the fact that approximately 40-50% of my sales are at the higher price; I highly doubt that the difference has much of an impact on sales.

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quickandeasy Volunteer moderator says

I would prefer buyers to deposit larger amounts :evil:

= higher ref cuts :P

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miroslavzv says

I have never used that Buy Now function with $2, if I want something buy I will rather use pre-paid credit, every month i deposit + $100 all is fine. You can use these money in the future and etc.

As a buyer im good with this system

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anitagraham says

As a drop-in potential buyer I can tell you that I don’t like the system as it is. I make my decision on the product page which says $10. If I come to the checkout and I’m told I can pay either 20% more ($12) or 100% more ($20) I am not a happy customer. (I am sure there is some psychology on decisions in there, but I don’t know what it is.)

If I’d been told $12 upfront and then found out I could get discounts by starting up a credit system I would be OK. (I would prefer not to use Paypal either, but I will if I there is no direct credit card system.)

$10 isn’t much, and nor is $12, but when I’m buying apps for the ipad I’m paying a lot less than that, so my standards of what is ‘a lot’ and what is ‘OK’ have changed over the last two years.

To the authors: few people who are walking away from an apparent ripoff will bother to tell you, the individual author, that you have lost a sale. Even fewer will bother looking round for a more general forum to make a comment on the system.

Good luck.

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RafaelOliveira says

What if envato change the minimum deposit amount to $10?
I think would be better to buyers who want just 2 or 3 Graphicriver items, but don’t want to pay the surcharge nor spend $10 more than needed.

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Pricop says

To be honest surchange it’s just fine, another option would be $10 deposits as RafaelOliveira said.

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orangecounty says

wtf, i was about to buy a $5 item and you try to charge me surcharge of $2? That’s 40%!! Simply put, this is a marketing tactic to FORCE people to deposit funds in their envato account so they are tied down. I don’t feel very good about that as a buyer.

Who knows if you are taking those money for other investment while paying 0 interest? Add that up to tens of thousands of customers, you actually can buy land and collect rent!

Credit card and Paypal transaction fees are something like 2.9% + $0.30 per transaction. I don’t see how there is a need for “surcharge” here since the difference in multiple payment and one single fund deposit is a matter of $0.30.

Just when i’m about to make a purchase (having the price as $5 in mind), I get an unpleasant surprise of +$2, kinda felt cheated.

I am still going to pay since the product i’m getting has good reviews. But i believe there are many customers silently cursing the site. Just puts your brand a notch lower down.

I’m posting this on other forums to warn buyers.

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WebSmacker says

Yes, Envato openly said they invest the money to earn interest on it. This is part of their business model and I don’t seeing it changing anytime soon. I too cursed the site at first, but then if you step back you realize that the $7 you paid probably would have cost over $100 somewhere else, whether you paid a freelancer to code it or you coded it yourself.

It’s a pain when you are a first time buyer, but when you find yourself coming back for other plugins/themes you realize that depositing is not that big of a deal.

You should stick around the forums. You’ll find that the community is very helpful, friendly and you get to know people from all over the world.

Good luck with whatever you are building :)

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