Anyone doing dynamic pricing based on location?
I sometimes get potential customers telling the pricing for divjoy.com is too high for where they live ($60, one-time fee). They're usually from countries where $60 is in fact a lot of money. I'm wondering if it would make sense to automatically charge certain countries less. Has anyone tried dynamic pricing? Looks like there are some APIs that help with this, such as modernpricing.com, but I'm wondering if it's even worth the trouble.
I wouldn't do that. You have a great product and the price is more than reasonable. I am 100% sure even if this was a 9.99 product you would get the same response.
This is a great question Gabe and I found myself in the similar situation roughly 6 months back when I was getting lots of requests to keep the price parity in different countries. Indeed I went with the choice and I have got good conversions from these countries thereafter.
From my own experience, I would suggest you to do the same. Please check if you have considerable number of folks who are not comfortable with USD prices.
For example - UK customers don't mind paying in USD but Indian users certainly do.
Thanks for chiming in @sachinjain024. How did you end up implementing price parity? And did you experiment with localizing the currency, such as showing the price in Rupees for people in India, without a price reduction?
We control our prices by having them stored in our database. Then based on location / country of the user we are fetching the localized prices so the user sees them in native currency. Then we have integrated paypal for checkout. Initially we kept the prices same and that didn't see much conversion. Then we reduced the prices and it landed us some conversions but we are still experimenting with the prices in these countries. So far whenever users complain of higher prices we give them discount coupon code and they get convert. Recently, we have simplified our pricing by reducing the options from 6 to 2. Will see how it goes from here.
Keep note that pricing is a difficult problem and it works differently for different business.
Thanks @sachinjain024, this is really helpful.
A couple questions that may help you think:
For purchasers (or would-be purchasers) in low- or middle-income countries where purchasing power is low, what proportion of them are natives, as opposed to remote nomads originally from the West?
Everyone gets prospective customers who are just a hassle - they ask for discounts, they have a higher support obligation, they're vocally negative if slightly displeased, and so on. Are these potentials those customers, or are they genuinely bound by their local economies?
Yes, great points to think about! From conversations I've had, I know there are certainly some people that are just bound by their local economies and can't afford it. Of course, hard to predict whether lowering the price for them will reduce potential revenue from remote nomads.
Here's a free library / API that can help you determine pricing per country:
https://github.com/rwieruch/purchasing-power-parity
I know Kent C Dodd and Wes Bos both sell courses with dynamic pricing but I am not sure how they implement it.
Thanks! That looks like exactly what I need.
Some of the programming course creators that sell from their own site are offering it. They have lots of customers in Nigeria, Brazil, India, etc., where $60 USD can be quite high for many people.
Nice! Have a link to any of these courses? Interested in checking out how they do it.
I can't remember exactly, since I live in Canada and won't be getting any kind of discount like this hehe. But, I believe it is offered by https://flaviocopes.com/
Great, thanks!
What people are using for this must be a really good solution because i don't remember ever seeing anyone doing this but it's probably very common.