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How to set regional prices for software without losing money

If you sell software worldwide at one dollar price, you are priced out of every market where that dollar is a week of wages. Regional (purchasing-power, or PPP) pricing lets a developer in Lagos or Pune pay something that feels proportionate. Done carelessly it also gives away margin. This is how to do it carefully.

Why a discount can earn more

A copy of your software costs almost nothing to deliver. If a visitor would not buy at full price, any price above your support cost is extra revenue. The risk is the visitors who would have paid full price and now pay less. So the question is never "is it fair?" but "does it bring in enough extra buyers?"

The break-even rule

A discount of d only pays for itself if conversion rises by 1 ÷ (1 − d) − 1.

DiscountExtra conversion needed to break even
20%+25%
40%+67%
50%+100% (conversion doubles)
70%+233%

That is why deep discounts are a bet. They pay off where your current conversion in that country is close to zero because of price, and not where you already sell reasonably well.

Damp it, and set a floor

A country with a quarter of the US price level should not pay a quarter of the US price: local buyers are often professionals paid in dollars or employed by international companies. The strength setting raises the price level to a power below 1, so the discount is shallower than the raw gap. The floor keeps any price above a share of your base so support and payment fees still leave you something.

Keep the table small

Fifty different prices are hard to explain and easy to get wrong. Collapsing countries into three or four tiers gives you a table you can read at a glance and a handful of discount codes to maintain. The generator groups them by band and prints the countries for each discount.

Limit the abuse

Taxes and currency

Tax is added on top of your price in many countries. Currency conversion and local price endings are best done by your payment processor or app store, so use the table for the dollar-equivalent target and let them localise it.

Try it

Put your base price into the generator, adjust strength and floor, and paste your own traffic mix to see the break-even conversion and a revenue what-if. It runs entirely in your browser.