iStockPhoto.com problem?

[97'Scort]

I'm putting together a new website, and I wanted to use some nice quality photos for a change. So I immediately headed over to iStockPhoto. May as well support a Canadian company, and get something nice in return.

However I noticed a bit of a problem: their US and CDN pricing doesn't match up. Now, pardon me if I've done the math wrong here, but here's what I see:

50 credits, $70 US but CDN price is $94.25. That puts the dollar at $0.743 USD. Bank exchange rate as of today is $0.85 (according to http://www.scotiabank.com/rates/fxrates.html). From my view, that $70 USD should be $79.94 CDN before tax ($83.94 with 5% GST).

Sooo....are they just ripping everybody off? Or am I wrong? I sent them an e-mail asking to pay in US dollars if possible, since I save $10.

[sputnik]

Weren't we hear last year... but instead we were talking about new cars and Canon cameras?

Retailers and manufacturers don't adjust their pricing daily based on the spot day FX rate.

[Canadian 2.5RS]

You could always try Veer. They are a local Calgary company.

[hampstor]

Originally posted by Canadian 2.5RS
You could always try Veer. They are a local Calgary company.

istockphoto is Calgary based - it's owned by Bruce Livingstone. He also owns evolvs media and webcore labs... I used to do a lot of business with them when I was a sales rep...

[97'Scort]

Originally posted by sputnik
Weren't we hear last year... but instead we were talking about new cars and Canon cameras?

Retailers and manufacturers don't adjust their pricing daily based on the spot day FX rate.

I would get that if they were selling a hard product. But they're not, they're selling a soft one. It takes almost zero effort to update that price with a fluctuating dollar. Otherwise, if you're going to mark your price against the US$ anyways, just charge in US$.

[sputnik]

Originally posted by 97'Scort


I would get that if they were selling a hard product. But they're not, they're selling a soft one. It takes almost zero effort to update that price with a fluctuating dollar. Otherwise, if you're going to mark your price against the US$ anyways, just charge in US$.

Companies set their yearly budgets based on sales figures and retail prices. They aren't going to constantly be moving their rates up and down constantly just to appease a few people who think they are getting "screwed" by the exchange rate on a $20 purchase.

The company has a number of fixed costs as well (IT budgets, salaries, infrastructure, office space etc). Should istockphoto.com decrease their Canadian employees salaries daily based on the fluctuating FX as well?

[ExtraSlow]

Also, customers often prefer stable pricing. It's a bit offputting if you buy something for $1 and then when you go to buy another one, it's $1.10.

[core_upt]

The only way to charge a floating rate would be to list all prices in one currency and then convert on billing.
One big problem with this is that a LOT of Canadian companies prefer to see everything in Canadian dollars up front - no hidden surprises at checkout.
I think iStock used to bill in USD only and actually switched to a multi currency platform later on.


Originally posted by hampstor


istockphoto is Calgary based - it's owned by Bruce Livingstone. He also owns evolvs media and webcore labs... I used to do a lot of business with them when I was a sales rep...

Was owned... he sold it to Getty. Patrick Lor, one of the main principles at iStock recently joined Fotolia as well.


Originally posted by Canadian 2.5RS
You could always try Veer. They are a local Calgary company.

Were Calgary owned... sold to Corbis out of Seattle, but still Calgary based. Check out their 'Marketplace' site though - similar pricing to iStock, but no credits, just images form $1-20 based on resolution. And their collection is actually groomed, so its not just amateur stuff.
http://www.veer.com/products/marketplace/

[97'Scort]

Problem solved!

Comment:
Dear Kyle,

Thank you very much for your email.

The premium for currency conversion is charged directly by the the card processor.

You definitely will receive a better rate with your bank. Please open your control
panel - top right side of the page - and set your currency for USD.

If there is anything else we can help you with, don't hesitate to contact us.


Sincerely,

Darek Z
iStockphoto
Client Relations
Toll-free 1-866-478-6251
Ph: 403-265-3062
www.istockphoto.com

I will check out Veer too, just to see. Thanks everybody!