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Came up with my idea

Last year I quit my full-time job to focus entirely on my side projects.

My most selling product is an open-sourced JavaScript library called lightGallery.

I was getting visitors to my website from all over the world. But sales mainly were happening from the United States, Canada, and a few parts of Europe. Because the pricing was US-centric and people from other parts of the globe could not afford it.

How can this be solved? By offering purchasing power parity pricing.

What is Purchasing power parity(PPP)? Purchasing power parity is an economic term for measuring prices at different locations.

Basically, it is a concept of updating your prices to make your products affordable for everyone regardless of where they live.

Looks like I found the solution. But how do I implement PPP pricing for my product? I use Gumroad to sell my products.

I can generate multiple discount coupons, display a banner on my website, and display the discount coupons based on the user's location. Or even adjust the price dynamically.

I can detect users' locations using their IP addresses. But what if they use VPN? I can detect VPN usage using some methods out there and prevent the banner from being displayed if the user is visiting my website using a VPN.

Okay, that solves the problem. But I've multiple products on my Gumroad account, and it is time-consuming for me to create discount coupons for each product and display them on my product website.

Also, how can I prevent the coupons from being shared from person to person or exposed in a public forum? It is not practically possible to manually update coupons on my Gumroad account and my website every week.

Well, Gumraod has great API support. I can create a widget and use their API to fetch product details and automatically add and update coupons.

So many things to do, and it would take me days to set up everything myself. First option, like any other user, I searched online. But I could not find a reliable tool that automats the whole process.

After doing a little more research online, I found a few creators offering Purchasing Parity Power pricing, but everyone built a solution by themself.

Finally, I decided to build it myself, and I created a basic solution and started using it for my products. The results were excellent, and I started seeing more sales from countries other than the US. The Revenue share from countries with low PPP values has been increased by 800%.

That raised a serious question. Why are more creators not offering PPP?
I discussed this with a few creators I know, and here is the summary.

  • Most people didn't care, and they did not really think about the possibilities or the issues US-centric pricing would cause.
  • Lack of authentic tools to automate the process.
  • The platform they sell products doesn't support location-based discounts.
  • They think people will abuse it by using VPN or sharing discount coupons in public forums.
  • There are no clear metrics available on the impacts PPP pricing could make
  • They thought that giving discounts would cause a drop in revenue.

After talking to more users and using my tool for some time, I understood that there is clearly a need for a tool that automates the whole process.
So I came up with a few more requirements that I would definitely use myself.

  • An option to set up PPP pricing manually.
  • Integration with Stripe and other platforms
  • An interactive dashboard that helps people make meaningful decisions about pricing their products.
  • Option to set up holiday-based discounts manually. Like BlackFriday discounts
  • Option to set up discounts based on the number of sales. For example, set up a deal that increases pricing based on sales. The first person would get 90% discounts and the second person gets 89%discoutn and so on.
  • Option to set up discounts based on time. Like the above option, the price will automatically increase in each interval. People who buy the product within half an hour would get a 90% discount, and people who buy in the next half an hour would get 85% discounts.
    API support- Instead of displaying a banner based on the discount rules, show the adjusted price itself.

Yes, I got another SAAS idea from my own problems. Even if it fails, I'd still be using it. If it succeeds, many people around the globe will get access to many products that they cannot afford now.

, Founder of Icon for paritydeals
paritydeals
on January 31, 2022
  1. 1

    This is a really meaningful way to reach more buyers and increase profits.

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