Purchasing Power Parity: fair pricing for your SaaS product

Two weeks ago I released my course about React hooks. I decided to use Purchasing Power Parity to offer a discount to users coming from a country where the purchasing power is lower.

In this blog post, I start by presenting what PPP is, then I explain several methods to use it on your SaaS to offer fair pricing based on the user’s location.

👉 Purchasing Power Parity: fair pricing for your SaaS product

Have you implemented PPP on your SaaS?
Did you code a custom solution or use an external service?

Sebastien Castiel

posted to

Software as a Service

on February 22, 2021

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I implemented region-based discounts but with a few differences:
1. The discounts are based on GDP geometric mean, not a price index. So if a country has 1/4 the nominal per-capita GDP, then they pay half price. If it's 1/9, then they pay 1/3 price, etc.
2. I just wrote it myself instead of using an external service, both because it was trivial and because I'd rather not depend on an extra external API or make my users wait for it.
3. I implemented this logic from the server-side, again for UX and speed reasons. Before the page is sent to the browser, the price is calculated and in the HTML payload.
One thing I'm not certain about is whether my customers (who are all programmers, know English and can work online) should have this level of discount or a shallower one.
alchemist

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5 years ago
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