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Adapting price localization is crucial for SaaS products because it makes the service accessible to a global audience, increases market competitiveness, and boosts conversion rates by aligning prices with what customers in each region can afford.
Purchasing parity pricing is a way of setting prices for products or services that considers the cost of living and income levels in different countries. The goal is to make prices fair and affordable based on what people can pay in their own country.
By using purchasing parity pricing, companies can attract more customers in countries with lower income levels, as prices are adjusted to be more affordable. This can lead to increased sales and market expansion globally. However, it may also reduce profit margins in those regions.
Individuals don’t have the same purchasing power as businesses, so B2C price localization adjusts prices to match what people in different regions can afford. In contrast, B2B pricing, which is often higher, takes into account industry standards and long-term relationships.
Student pricing localization is the practice of adjusting prices for products or services specifically for students, based on their location and local economic conditions. This approach considers factors like regional income levels, cost of living, and currency differences to make pricing more affordable for students in different areas. The goal is to ensure that students worldwide can access the same products or services at prices that are reasonable for their financial situation.
Offering prices in local currencies makes buying easier and more transparent, builds trust, and reduces cart abandonment by showing customers the exact cost in their familiar currency.
We consider world Bank details on purchasing power. For detailed methods, refer to this link.