SaaS pricing localization involves adjusting software pricing
strategies to suit different geographical markets, taking into
account local purchasing power, currency, and cultural nuances.
Cleanprices.com generates international prices for your product
based on your local price, the exchange rate, certain cleaning
method (e.g. rounding) and optionally including purchasing power
parity.
This automates the process of pricing optimization across
different currencies and regions, taking into account local
purchasing behaviors and psychological pricing strategies.
The results can be exported to CSV or JSON or use a
pre-generated script to update prices in payment providers that
support country overrides such as
Paddle.
Why are clean prices better?
In two words: Increased Conversion. This tool implements
psychological pricing strategies that are proven to increase
sales, such as using just below prices to create a perception of
value or round prices for easier processing and premium
positioning.
Cleaning methods
Cleaning referrs to practices like just below aka charm pricing,
rounding and purchasing power parity.
Round Prices
Round pricing refers to setting prices at even, whole numbers,
such as $20 or $100, instead of using fractions or decimals.
This strategy simplifies the pricing structure and can convey a
sense of quality or premium value. It's often used in settings
where a straightforward, upscale pricing image is desired, or
where the simplicity of transaction is a priority. [Source]
Just below
Just below pricing is a common marketing strategy where products
are priced slightly under a round number, such as $19.99 instead
of $20. This approach is used to create a perception of greater
value or a bargain, as prices ending in .99 or just below the
next whole number often appear less expensive to consumers,
encouraging more purchases. [Source]
Exceptions
When prices reach four figures or higher, which is typical for
currencies like the Indian Rupee (₹), Japanese Yen (¥), or
Turkish Lira (₺), the tactic of setting prices just below a
round number (e.g., $3,222 instead of $3,000) may not be as
effective. Instead, for these currencies, it's advantageous to
use a price where the last three digits repeat and end with a
number below 5, preferably 1, to convey better value. For
instance, pricing something at ¥2,111 can be perceived as a
better deal compared to ¥1,999.
In some asian coutries 8 is considered a lucky number and
therefore better for Just Below pricing. [Source]
Purchasing Power Parity
Purchasing Power Parity (PPP) is an economic theory that
compares different currencies through a "basket of goods"
approach to determine the relative value of the currencies.
According to PPP, two currencies are in equilibrium (i.e.,
appropriately valued relative to each other) when a basket of
goods is priced the same in both countries, after adjusting for
the exchange rate. This concept helps to measure and compare the
economic productivity and standards of living between countries
more accurately than nominal exchange rates alone. PPP is
particularly useful for international economic comparisons and
analyses, such as determining the real differences in living
costs and real income levels across countries. It is also used
by global organizations like the World Bank to adjust GDP and
other economic indicators to reflect the true cost of living in
different countries.
About this website
CleanPrices.com is provided free of charge by
Boathouse - Customer Portals for Paddle. Contact us at
[email protected]