Our pricing strategy – How do we price our products?

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As a customer, pricing is everything

Those who have interacted with us in the past, either via the phone, email or social media, will know that we’re all about transparency. There are always certain aspects that we keep internally, but that’s just normal with any business.

What we want to focus on mainly for this post is Pricing Transparency. This is not an easy subject to talk about as there’s no customer out there that would not want to pay as little as they can.

Every company has a different approach to pricing, their own rules, and profit margins. Regardless of what other companies do, what we’re interested here is how we price our items.

How our prices are calculated?

Putting a price tag on something is not as easy as just randomly coming up with a number, there are many factors that will increase or decrease the price:

  • Cost of Goods is the first and most important one. This is how much it’ll cost us to buy a given product. Here is included the manufacturer wholesale price, importation duty and taxes and respective shipping cost to get it into the country.
  • Advertising and other variable aspects is often neglected and forgotten by many companies. Every time you click on our facebook sponsored post or google ad that’ll cost us money. We need to take that into account when pricing our items. This represents a very small percentage as it is spread across all items.
  • Shipping and packaging to our customers. Don’t you hate when you add something to the cart and on the checkout page you’re presented with a nasty £10 shipping charge? – We hate it too!
    We’ve decided to adopt a “What you see is what you pay” for our UK customers. This means that the price you see on the product page is what you pay, nothing else, no nasty surprises. This excludes oversized items as we cannot accurately predict how much it’ll cost. For these items, we remove any shipping cost from the price and provide an estimate separately.
    Other part of it is packaging. In order to deliver the item to you without any damage, our specialised warehouse uses the best packaging materials to protect your items. You don’t want to receive your items in pieces, right? 🙂
  • Profit margin is a percentage we add on every item and this is where we actually make money. We’re a business after all and doesn’t matter how much we love the items we sell, we need to make money to keep the business running. We do not have a “one percentage fits all”. Every single category (and sometimes item) has a different profit margin. A lot of different things will affect this, but one of the main ones will be competition. We have the aim to keep ourselves competitive with other shops in the UK. Most of the times popularity will be the biggest factor. The more popular an item is, normally, the lower our profit margin as we willl, in theory, sell more.
  • Our Customer Support is completely FREE! We’re always working towards having the best customer service.
    Replying to emails in less than 1 hour, handling the request for special items as quickly as we can, suggesting items that you’d be interested and answering your emails even on a Sunday morning hehe… that’s all free! 🙂

I've seen shops in the US and Japan selling much cheaper!

That’s 100% correct and a very unfortunate reality we need to face. Items in the US and Asia (Hong Kong, Japan, China, Taiwan, etc.) will always be cheaper there. There are a couple reasons for this:

  • These items are actually manufactured there and as such, there is no importation duty and hardly any taxes.
  • Still on the taxes subject, taxes in Asia and even the US, are generally lower than they are in Europe.
  • Most of the times, you see that these items are available overseas much sooner than in Europe. This is because they need to travel by boat, half way around the globe, to get to us and this also costs money.

Why not buy directly from there then?

Great question! – A lot of our customers ask us that same question. Like most things, there are always pros and cons.

Pros

  • The obvious and only advantage is price.
  • You might get lucky and not get charged any Importation Duty. More on that bellow.

Cons

  • Shipping – even though it’s cheaper, you will have to pay for shipping. A lot of times shipping itself will cost you quite a bit, especially if you want them quick.
  • Shipping time – some companies will actually provide you free shipping, but this means that your item could take up to 1 month to arrive.
  • Guarantees – you’ve bought your item and you selected free shipping (or really cheap shipping). If it gets lost or misplaced, no one will take responsibility for it. That’s a 100% loss for you.
  • Customer Support – everything is great until something goes wrong. If you happen to receive your items and something’s broken or it’s not what you expected you either need to deal with foreign customer support or send the item back, which could take weeks and then get a replacement, which would take even longer.
  • Taxes – here we go again on the taxes 🙂 One of the reasons it’s cheaper to buy from overseas is because you do not pay any VAT (Value Added Taxes). But there’s a gotcha… you do need to pay that VAT (UK VAT) and importation duty, which, most of the times, will bring the price up to more or less how much it costs buying from us. It’s a gamble most of the times… do you want to take the risk?
José Airosa

Founded in 2015, Animegami Ltd, entered the collectibles market with the main purpose of establishing itself as one of the primary Anime, Manga and eastern Asian culture supplies retail providers.

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