If this makes sense, and which reductions will be optimal clearly depends on whether it's B2B or B2C, and what your specific target audience is.
For B2C, I think it should always be done if possible, for both fairness and revenue.
Let me give App Finder, my advanced search engine for Android apps, as example (
https://skyica.com/appfinder). The target audience consists of a large part of the smartphone users worldwide. As we know, a large part of the population of developing countries now owns smartphones, but has very little money to spend on software.
So, as App Finder is getting more popular, I'm now reducing the prices in lower-income countries.
I think the following measures should be taken into consideration:
- Median income, as indication for how much money the largest part of the population has available
- Purchasing power parity (PPP), as indication for which prices people are used to
- Percentage of population living in poverty
- Maybe also VAT
Since I couldn't find comprehensive and current data for median income, I use GDP/capita and Gini for orientation. PPP factors can be determined by dividing nominal GDP by PPP-GDP. GDP data is available in the Wikipedia article for each country, and there is a quite comprehensive and up-to-date list for poverty:
https://en.wikipedia.org/wiki/Li...
Does anyone know a good source for something like median income?
Here some examples of the reductions I will use:
India -55%
Indonesia -40%
Pakistan -55%
Brazil -30%
Nigeria -60%
What do you think?
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