Pricing model

New Member
8 0 0
It strikes me there will be two distinct markets for Shopify: * shop owners themselves * web designers creating shops on behalf of their shop-owning clients. I fall into the latter group and am very excited indeed about Shopify. I've used a few other packages to create online stores for my clients and all have been frustrating and less than ideal. The closest was Karova Store, which at least output standards-compliant code. Taking Karova as an example, the pricing model worked great in my situation - I paid the licence fee, did the design work, incorporated that into the system, and charged the client the accordingly. Basically: Karova licence fee, plus extra on top for my time, expertise, design work, etc. We were both onto a winner. I'm struggling to understand how the Shopify percentage-pricing model will work for people in my situation. Maybe it's simply not designed for people in my situation at all? After all, if I was a fairly non-technical shop owner, the pricing model would be perfect. However, in my case, I could charge the client for my time in getting it all up and running, plus designs and template creation, etc, but then on top of that I have to tell the client that I'm (or Shopify) is also going to take 3% of his sales too. Hmmm... How would other people see the pricing model working in the 'web designers' situation? Would similar folks be charging, say, a lot less for the initial work, but then mark up the sales percentage? I can't see how that would work actually... Any suggestions as to how others will be pricing up Shopify sites they develop on behalf of others would be really appreciated, many thanks : )
0 Likes
New Member
9 0 0

Hey,

the key benefit that I see with Shopify is that it cuts out all infrastructure costs … there’s no monthly hosting fee, there’s no initial server setup fee … there’s no setting up your own apache or lighttpd etc. ...

On top of that, ( I can only presume ) Shopify is being built to scale … which is something that your infrastructure would have to be designed around too. To get the same level of infrastructure that’s behind a shopify store ( again, I don’t know the details, but expect ) you’d have to expect your client to be shelling out $100 + per month for a dedicated machine.

In that sense the % looks pretty good … If the store is slow, costs are 0 – so it’s really great for dipping into the pool.

If the shop takes off, then it’s time to start making deals with the credit card companies.

Peace,

Paulo

0 Likes
New Member
8 0 0

Oh yes, I’m not knocking the value of the pricing model, I think it’s more than fair, especially for the reasons you mention. The % model is certainly excellent for the shop owner, no question.

What I’m really asking is from the perspective of the web developer who is creating the store on behalf of a client, especially a client who is technically clueless. I’m finding it tough to see how their charging for creating the store, designing, template creation, etc. would work.

I suppose (just thinking out loud) it makes sense that there would still be a charge for that set-up, design and implementation work, but the 3% charge would be for the server setup, monthly hosting, infrastructure, etc, that you mention, which frankly I’m happy for someone else to do anyway! I don’t understand people who have an issue with the fact that Shopify is a hosted solution : )

0 Likes
New Member
8 0 0

On a slightly related note, is there likely to be any way, now or in the future, of removing mention of Shopify from the admin panel? Like the way Basecamp, for instance, doesn’t mention it at all.

0 Likes