Geographical pricing: The growth strategy your competitors don’t want you to know about.
Are you struggling to increase your sales and revenue despite investing time and resources in different growth channels and ads? Well, have you considered implementing geographical pricing for your SaaS product? By setting prices that match the local market, you can increase your sales by 20-70% on average, outsmart your competition, and even expand globally.
Every country and region has its own unique cost of living, level of demand, willingness to pay, and market competition. To effectively cater to buyers worldwide, companies must provide pricing that suits each specific market. Otherwise, if they offer a single pricing strategy for all users, their revenue and profits may suffer.
In this blog, we will explore the concept of geographical pricing and how it can help businesses make more revenue and profits. We will guide you on how to implement geographical pricing for your SaaS product and succeed in the global market. Don’t overlook this powerful sales tool that can help you make more money and keep your customers happy.
What is geographical pricing?
In simple terms, it is a strategic pricing approach that adjusts prices based on the geographic location of customers.
Think about it - every country and region has its own unique cost of living, level of demand, willingness to pay, and market competition. To effectively cater to buyers worldwide, companies must provide pricing that suits each specific market. Otherwise, if they offer a single pricing strategy for all users, their revenue and profits may suffer.
Is geographical pricing right for me?
Every company and creator is always looking for more revenue and profits, investing time in different growth channels, and even trying ads. However, when it comes to making a pricing strategy, some feel that it’s not necessary at this stage and is only for big companies. But we are here to burst that bubble.
Geographical pricing is not just for big SAAS companies like Salesforce, Slack, and Snowflake. It’s a powerful strategy for making more money and surviving in the current market with big competitors and local players.
- By setting prices that match the local market, it gives an edge over rivals by offering more targeted and localized pricing.
- It increases sales. We see every day that companies and creators increase their sales by 20-70% on average by just implementing geographical pricing.
- It also makes it easy to expand globally and stand out from the competition. Offering geographical pricing sets you apart from the local players and provides good local appeal for your product.
So if you’re a digital creator or SAAS company looking to grow your business, don’t overlook geographical pricing. It’s a powerful tool that can help you make more money, keep your customers happy, and outsmart your competition.
By the way, if you’re on the fence about going global, this is the right time to do it, and geographical pricing can help you succeed in the global market.
How to implement geographical pricing for your SaaS product?
Identify regions for geographical pricing
To begin with, identify the regions where you want to apply different prices. You can base this on factors such as cost of living, competition, and purchasing power.
Analyze the market
Once you’ve identified the regions, it’s important to analyze the market to understand pricing trends and customer behavior. This will help you set the right price for your product and become competitive in each region.
Determine your pricing strategy
Next, you need to determine your pricing strategy for each region. You can choose from different pricing strategies examples like cost-plus pricing, value-based pricing, or dynamic pricing. Consider the market conditions, customer needs, and your overall business objectives when deciding on a pricing strategy.
Set the prices
Use pricing software to help you set the right price based on your strategy and the market conditions.
Test and iterate
Use pricing software to help you set the right price based on your strategy and the market conditions.
Set the prices
It’s very important to test the new pricing and gather customer feedback. You may need to iterate your pricing strategy and adjust prices based on customer feedback to optimize your revenue. ParityDeals offers a valuable dashboard that shows sales data for each region, making it easier to analyze and adjust pricing strategies.
Promote and communicate with customers
Finally, it’s essential to communicate with your customers about the geographical pricing strategy and why the prices differ based on their location. You can use social media, send emails to prospects in every region, or have a banner on your website/apps to talk about the new pricing. This will help build trust, attract more customers, and prevent confusion.
Unlock the global potential of your SaaS with ParityDeals' powerful pricing capabilities. Contact us now to book a demo.
