I need to decide whether to show prices on a website with or without taxes.
At the moment our Product can be purchased for Rs.999. But we recently got a GST certificate and have to charge our customers 18% tax. I would like to know the best way to display the price of the product, the two ways that we can do this are either by:
- Showcasing the price as "Rs.999+18% GST" and show the final split up at the payment portal.
- Showcasing the price as "Rs.1200(Inclusive of all taxes)" and show the split up at the payment portal.
We don't want to lose out on potential customers because we are showcasing a high price nor do we want to lose them because we are showcasing the price exclusive of taxes.
We ran a poll at my office and we reached a split decision on the same.
Some people preferred the price to be displayed as "Rs.999+18% GST" because:
- They prefer to see how much the base price of the product was
- Some don't look into how much the tax amount is and only care about how much the product costs
- They are interested when they see the lower price
The other half chose "Rs.1200(Inclusive of all taxes)" because:
- They didn't need to calculate tax
- A clear-cut price is shown
- It's a round off value
- Some didn't want to see a split up and only wanted the final amount.
To give you all more perspective our target audience are final year college students and our company is based out of India.
What do you think is the best approach to this problem? Also I'm open to other solutions about how to go ahead with this issue.