Pricing Formula for Photo Prints

Welcome to Wiggly Canvas

Welcome to Wiggly Canvas! We, the founders and fellow artists, are thrilled to have you join our platform. At Wiggly Canvas, you have the complete freedom to set your own prices and keep 100% of the profit after deducting applicable VAT or tax, payment processing fees, and currency conversion fees. We handle the shipping for you, so you don't have to worry about it. However, it does need to be included in the calculations since it affects the total order amount.

Pricing and Currency Conversion

All our selling prices are displayed in Canadian Dollars (CAD) on our platform. However, both you and your customers will see the prices based on your respective currencies, thanks to our currency conversion application. This application automatically applies conversion fees, and the payment method will deduct these conversion fees when processing your customer's order if they bought in any currency other than Canadian dollars.

General Formula for Product Cost

To help you set your prices effectively, here’s a simple formula you can use to calculate your product cost:

1. Add the base price and the equivalent of 9 CAD for shipping fees in your local currency.
2. Multiply the result by 1.181 (which includes payment processing fees, additional processing fees, and VAT/tax).

Once you have this total product cost, you can set your desired profit on top of it to determine your final selling price.

Practical Example

To make this clearer, let's consider an example:

Scenario: An artist sets a base price for a canvas print and sells it on our platform. The base price is displayed in their local currency, and the target selling price includes all fees and taxes.

Steps:

1. Base Price:
   • The base price is already displayed in the artist's local currency.
2. Add Shipping Cost:
   • Add the equivalent of 9 CAD in their local currency to the base price.
3. Apply Fees and Taxes:
   • Total Fees and Taxes Percentage: 18.1% (2.9% payment processing fee + 0.20% additional processing fee + 15% VAT)
   • Multiplier for Fees and Taxes: 1.181
   • Total Product Cost: $\text{(Base Price + Shipping Cost)}\times 1.181\backslash text\{(Base\; Price\; +\; Shipping\; Cost)\}\; \backslash times\; 1.181$

Tax Table

We have a tax table for most of the active trade countries. You can check it out here: [Tax Table Link]. It's safe to assume a 15% deduction for VAT and other applicable taxes worldwide because it is the average tax rate in many countries and will keep you in the safe zone.

Conclusion

We hope this example helps clarify how to set your selling prices and calculate your profits on Wiggly Canvas. By understanding the impact of various fees, taxes, and currency conversions, you can ensure you're pricing your artwork effectively and maximizing your profit. With this knowledge, you can confidently set your prices and focus on what you do best—creating amazing art!

If you have any further questions or need assistance with anything else, feel free to reach out to us. Happy selling!