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@hot_heap_hana ·

a third of my signups are from india and brazil - one usd price, ppp discounts, or let stripe localise it

Flat $24 a month, one price worldwide. Looking at the last 400 signups, about 33% come from India, Brazil, Indonesia and the Philippines, and their trial to paid rate is roughly a quarter of what I see from the US and western Europe. Same activation behaviour, same usage, they just do not convert at the end.

Three options I keep circling: leave it alone, add purchasing power discount codes by country, or switch on the localisation feature so prices display in local currency.

The last one confuses me most. Does showing the price in rupees actually change anything if the number is the same?

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  • @leaky_bucket_ed · 7mo ago · 3 replies

    Ran regional pricing for two years on a similar split. The honest summary.

    What worked: a genuinely lower price for a defined set of countries, applied automatically, not via a code people have to find. Somewhere around 45 to 60 percent of the US price for the markets you named. Conversion in those markets went up several multiples. Absolute revenue from them went up meaningfully, because a quarter of the conversion at full price was worse than most of the conversion at half.

    What went wrong: leakage. Discount codes get posted publicly within weeks. Detection by IP catches casual cases and misses anyone with a VPN, which in developer-adjacent audiences is a lot of people. I ended up accepting maybe five percent leakage as a cost of doing business and stopped policing it.

    What I got wrong for a year: no country restriction on annual plans, so people bought three years at the regional price during a trip.

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    • @cadence_cam · 7mo ago

      Billing address country plus card issuing country agreeing is a better check than IP and much harder to fake casually. Not perfect, but it moves the cheating from thirty seconds of effort to actual fraud.

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    • @backfill_bram · 7mo ago

      Yes, that is what I moved to eventually. The IP-only version was a mistake I kept for far too long.

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  • @notetaking_ivo · 7mo ago · 3 replies

    Take the third option off the table as a solution to your problem, because it solves a different one.

    Localised presentment shows the price in the customer's currency at an exchange rate, so a $24 plan appears as the equivalent amount in rupees. It removes the friction of an unfamiliar currency and the customer's own bank conversion surprise. It is not a discount. Stripe's documentation is explicit that the rate they present includes a conversion fee, in the region of two to four percent, and that fee is paid by your customer on top - so the localised price is slightly more than the raw conversion, not less.

    Good for conversion at the margin, particularly on cards that would otherwise have declined. Irrelevant to the question of whether $24 is affordable in a market where it represents a different share of income.

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    • @zigbee_zoe · 7mo ago

      So it is a friction fix, not a price fix. That clears up most of my confusion. I had them filed as the same lever.

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    • @sear_after_sam · 7mo ago

      It also helps with declines from local cards that struggle with cross border USD charges, which in some markets is a bigger effect than the psychology of the number.

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  • @flashcard_fen · 7mo ago

    Support load per customer was identical across regions for me, which surprised people who assumed otherwise, and is worth knowing before you build a story about lower-value customers. Cost to serve did not vary. Only willingness to pay did.

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  • @kerf_wander · 7mo ago

    Before you change price, check whether your trials from those regions are the same product experience. Payment method coverage varies enormously - in several of those markets a big share of online spending happens through methods that are not an international credit card at all. If your checkout only accepts cards, some part of that conversion gap is people who wanted to pay and could not.

    That is a much cheaper fix than a pricing redesign and it is invisible in your funnel because a person who cannot pay looks identical to a person who chose not to.

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  • @hot_heap_hana · 7mo ago

    The sceptical case for doing nothing: regional pricing doubles the complexity of every future decision you make. Every price rise, every new tier, every annual discount, every grandfathering question now has a matrix instead of a number. For a solo operator that compounds.

    If those markets are a third of signups but a small share of revenue, and you are otherwise healthy, leaving one price and accepting a lower conversion rate from those regions is a legitimate choice and not a lazy one.

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