Added Fees: Is it Good Or Bad?
Having difficulty finding profit in your business? No worries, we’ve got the right tools to help you improve your profit gains through these practices like added fees to secure consistent cash flow for your business. Here’s what you need to know to keep your business profitable on your end.
The practice of Added Fees
According to the Mageworx’s Magento 2 module for the “Multi Fees Extension” business model, you use added fees to help shoulder the costs in your business. For example, you have a flower business that has an online delivery service. It’s possible to add fees to the delivery through a priority delivery fee or add more personalization options for the customer for their product. Overall, this practice adds more value to your product as you’re offering more options to the customer as you’re giving them more priority and choices on their order. Different businesses may have a different approach with this. The idea is to give more options to the customer with a price.
The Program’s Helping Hand
It’s understandable that managing a business in itself is difficult to work and computing for new fees may mess up your head. Magento 2 has got you covered as it acts like a calculator of sorts that helps you decide where to put in the added fees while also factoring in the other costs to decide the final price for your item. It’s also possible to put in specific promos like removing the extra fees if the customer buys in bulk or being exempted from the fees if they’re subscribed to a special membership with the business. Lastly, the pricing in the program is highly customizable which allows you to consider pricing options more flexible.
This tool can be handy if you’re not confident you can make all the computations on your own.
The Good Side of Extra Fees
Before you get excited with adding extra fees, it would be best to discuss the upsides and downsides to this practice. Again, extra fees assure that your products will have some extra boost to the income of your product. It helps you pay the fees required in producing and selling the product. In exchange, the added fees are still in a form of service where the customer can oblige or avoid by choice. If your product needs an extra boost in income, this is a viable way to do it.
While it is ideal to put additional fees on your products for extra and optional services, it’ll be best to not put too much on it on the product. It’s realistic to understand that the customers will see this as it is, “optional” fees that can be avoided entirely. Additionally, the customers may not take it well if forced to always pay up for more than the product’s price.
For example, customers can and will wholly ignore the optional choices if it gets too tedious in reaction. Additionally, blindly adding fees can be straining to customers as oppressive costs can scare them away. At times, it might be best to tone down the added fees according to your customers. If used too much, the “Multi Fees Extension” could spell the doom for the business instead of helping it grow.
Added Fees can usually be seen on businesses that deliver their products to their customers. Sometimes, you can see them adding a Delivery fee or a Comfort fee for the type of service a customer has requested. There’s no inherent problem with this one yet but it can turn off many consumers as it is an added fee they consider to be separate from the product itself.
Remember to double check your customer’s preferences as its also important to have customers rather than just haphazardly adding new offers that can be disastrous or even become a deal breaker for them.
When All Else Fails, Ask
Asking customers on how to add new fees and services is not a bad idea. The customers can identify what they want to be added into the product they’re currently enjoying right now. With this data in mind, you can make extra fees for your products and be sure that your customers will still buy it.
This practice has long been the setup in the video game industry and could definitely help budding entrepreneurs regardless of the type of the business. However, relying too much on this tactic may ruin the product as the additional fees can indicate an incomplete product instead of providing extra services as intended. Being careful with your business practice is key in this specific tactic.
All in all, it’s up to you on how far on your products are you willing to have the added fees on. Do it too less and your business can suffer. Do it too much and you can lose your customers which means reduced income. To be sure, it would be best to ask experts like psychologists, experienced businessmen and even the customers themselves to find the correct execution of this marketing strategy.
For now, you can opt to buy Mageworx’s Magento 2 software if you think it can help your company move forward in the right direction.