Markup Calculation

Discussion in 'Shapeways Shops' started by B1lancer, Apr 3, 2010.

  1. B1lancer
    B1lancer New Member
    I'm interested in how the markup amount is calculated with regard to the strength of the dollar. For example:

    An item is sold for $80+$20 markup, total $100. On the day of purchase the Dollar is 2.0 to 1.0 Pound. The customer pays £50 for his purchase. £40 shapeways, £10 Markup.

    1 month later when the markup is paid to the shop owner the Dollar may be 3.0 to 1.0 pound. The $20 markup would then be worth £6.66.

    The example is over simplified but my point is, which amount is paid? The £10 or the £6.66?

    Kindest Regards,

  2. virtox
    virtox Active Member Moderator
    I don't think this is applicable, allthough tempting to calculate this way.

    But everything at done at Shapeways is in dollars, they don't do any conversion. (except for payment by bank, but here the customer does the currency change themselves at the then going rate)

    So I receive my markups in $ on a paypal account.
    It will not be exchanged to another currency unless I do so myself.

    So in your example, you'd get the 6.66.

    But seeing the $ is on the up again, probably 11 :p

    Kind regards,

  3. TomZ
    TomZ New Member
    On Shapeways, everything is in dollars. Customers make payments in dollars (paypal converts your money to dollars before Shapeways gets it) and Shapeways pays markups in dollars.
    If the value of the dollar were to suddenly drop then I don't think Shapeways would give compensation for that when paying the markup. If at the beginning of the month a customer pays a $10 markup which at the time is ¤8, you're going to be paid $10 at the end of the month, regardless whether that's ¤6, ¤8 or ¤10 by that time.