SaaS pricing localization involves adjusting software pricing strategies to suit different geographical markets, taking into account local purchasing power, currency, and cultural nuances.

Cleanprices.com generates international prices for your product based on your local price, the exchange rate, certain cleaning method (e.g. rounding) and optionally including purchasing power parity.

This automates the process of pricing optimization across different currencies and regions, taking into account local purchasing behaviors and psychological pricing strategies.

The results can be exported to CSV or JSON or use a pre-generated script to update prices in payment providers that support country overrides such as Paddle.

Why are clean prices better?

In two words: Increased Conversion. This tool implements psychological pricing strategies that are proven to increase sales, such as using just below prices to create a perception of value or round prices for easier processing and premium positioning.

Cleaning methods

Cleaning referrs to practices like just below aka charm pricing, rounding and purchasing power parity.

Round Prices

Round pricing refers to setting prices at even, whole numbers, such as $20 or $100, instead of using fractions or decimals. This strategy simplifies the pricing structure and can convey a sense of quality or premium value. It's often used in settings where a straightforward, upscale pricing image is desired, or where the simplicity of transaction is a priority. [Source]

Just below

Just below pricing is a common marketing strategy where products are priced slightly under a round number, such as $19.99 instead of $20. This approach is used to create a perception of greater value or a bargain, as prices ending in .99 or just below the next whole number often appear less expensive to consumers, encouraging more purchases. [Source]

Exceptions

When prices reach four figures or higher, which is typical for currencies like the Indian Rupee (₹), Japanese Yen (¥), or Turkish Lira (₺), the tactic of setting prices just below a round number (e.g., $3,222 instead of $3,000) may not be as effective. Instead, for these currencies, it's advantageous to use a price where the last three digits repeat and end with a number below 5, preferably 1, to convey better value. For instance, pricing something at ¥2,111 can be perceived as a better deal compared to ¥1,999.

In some asian coutries 8 is considered a lucky number and therefore better for Just Below pricing. [Source]

Purchasing Power Parity

Purchasing Power Parity (PPP) is an economic theory that compares different currencies through a "basket of goods" approach to determine the relative value of the currencies. According to PPP, two currencies are in equilibrium (i.e., appropriately valued relative to each other) when a basket of goods is priced the same in both countries, after adjusting for the exchange rate. This concept helps to measure and compare the economic productivity and standards of living between countries more accurately than nominal exchange rates alone. PPP is particularly useful for international economic comparisons and analyses, such as determining the real differences in living costs and real income levels across countries. It is also used by global organizations like the World Bank to adjust GDP and other economic indicators to reflect the true cost of living in different countries.

About this website

CleanPrices.com is provided free of charge by Boathouse - Customer Portals for Paddle. Contact us at [email protected]