Purchasing Power Parity: Fair pricing for SaaS products
The economics term for this is Price Discrimination (<a href="https://www.investopedia.com/terms/p/price_discrimination.asp" rel="nofollow">https://www.investopedia.com/terms/p/price_discrimination.as...</a>).<p>I don't want to go into fair or unfair as the author does (that is a very complex discussion), but it is definitely the most optimal way to price your product. The basic idea is – charge every customer the max they are willing to pay. As long as everyone is above the break-even point, you will maximize your profits.<p>This is definitely not a new idea ("emerged these past few months" as the author states). I remember people would pack their bags with boxes of Microsoft Windows and Office when coming back from foreign trips. Same goes for subscription pricing. That premium $20/mo Netflix plan costs $4 in Turkey.<p>It's also a bit weird to see a service <i>advertise</i> their price discrimination. You are essentially saying "your country has a shit economy, so here's a discount" on the checkout page. And then are you also going to show the opposite – "you are in the USA so need to pay 50% more than average for this product"?