If you've got here because you've worked yourself up into a state of rage because the fancy accounting/ERP/web system you pay all that money for each month has produced an invoice that doesn't match up with an invoice you've been given, or a customer has complained that the totals on an invoice you've produced are incorrect - take a deep, calming breath and know this: there is no single, correct way to calculate VAT.
Be honest - if I asked you what the resulting margin would be on a 50% markup, how quickly could you answer?
Given how fundamental margins and markups are to any product business, I think it's time we cleared this up once and for all. If you can't be bothered to read this, just grab the "cheat sheet" at the bottom of the article, print it out and keep it in a safe place.
Well, honestly, they probably just eyeball it. A lot of business owners have been “in the game” so long they can probably just guess at how much to buy.
I ran a company that supplied restaurants and hotels for a good while and can tell you that precisely 0% of our customers were doing anything other than calling us from inside their walk-in cold room with a list scratched on the back of a chopping board directly from memory.
Last week Pakk reached a major milestone. Of course there have been many others: our alpha launch, our first live customer site, their first order etc. This one, however, was really big, both on a personal and professional level. This is the story of how that milestone was reached and what it represents — right from the very beginning. It’s a reflection on the past and future, on business and entrepreneurship, on technology, software and web development, on commerce and e-commerce. Mostly though, it’s about life: my life, our lives and life in general.
If you’re just getting into e-commerce, there’s a high chance your top priority when shopping for a platform is “having a great looking store”. Are you finding yourself browsing through template galleries and customer portfolios? Obsessing over image carousels? Considering contracting a designer to help put your store together?
Sure, I get it, it’s natural for a business owner to want a “great looking store”. Wouldn’t we all? Why would we set out to build an online shop and not want to make it look as good as possible? I’m here to tell you though, that having a great looking store, even a good looking store, is not as important as you think. And I can prove it with one word: Amazon.
Nothing wrong with the aesthetics of Amazon — it looks, well, OK, but it’s not going to win any design awards — I think we can agree on that. So why is the way your store looks not all that important? Well, there are actually quite a few reasons.
The web changes. Fast. If you look back at web trends over the past 15 years, it’s mind bending how quickly styles have come and gone. If you’d have created an ‘on trend’ site in 2005, you’d probably have had to completely overhaul it 4–5 times by now to keep current. That’s expensive and tiresome.
It’s no coincidence that half the web is bust and the other half slower than a broken down bus. Often, in a misguided attempt to make their site “flashier”, designers and store owners load them up with widgets/plugins/carousels/themes or any other manner of digital cruft. Mostly it just gets in the way of the shopping experience. Then it ages badly and you’re back to point 1.
Ever noticed how easy it is to tell apart a small-business online store from one of the big players? The small store is the one with the black background, wood-panel-effect header, handwriting font and video carousel. The big ticket store is the one that looks, well, like every other big ticket store.
OK, that’s a complete exaggeration, but you get where I’m going with this. It’s hard to make a site look good across the modern gamut of devices. Not “design hard”, but “engineering hard”. You might be happy with the store you’ve created when viewed on a desktop with a lovely big monitor — but you also need to be sure that it looks that great on any of the 1000 handheld devices your potential customers might be using.
So if I’m saying you shouldn’t obsess about creating a great looking site, then what should you obsess about? I think it’s quite simple. Design-wise, this is what I would obsess about:
I won’t go into all the different elements of functionality — that’s for another day. I think it’s enough to stress that aesthetics should take a back seat to efficient functionality. Go simple, fast and clean over flashy, gaudy and “custom”.
Unless you’re selling diamond rings or custom-designed travel experiences, you don’t need to tell a story — you just need to present your product catalogue in the most efficient way possible.