Dear SaaStr: Should SaaS Pricing Be Adjusted for Different Geographical Markets?
Your public pricing? Usually the answer is — Not Today.
- First, it’s complex to manage.
- Second, your users will see the pricing is “cheaper” somewhere else and get mad.
- Third, it’s unlikely to move the needle.
Usually — wait. Wait until your are bigger and can deal with all the complexity here.
But if you really can show it can move the needle now, ignore this, and go for it. A common exception here is when your app takes off in less developed countries as a large % of your customer base without you really planning for it. $5 a month can be a lot in some geographies … vs. probably way too cheap in U.S., Europe, etc.
A second important exception is localizing currencies. You should do this as soon as you have 5% of your customers in any given country. Make the pricing roughly comparable. This shows you are “localized” and customer-centric in all your important geographies.
Third, it’s OK to guide different regions to different plans. It may make sense to show your cheapest plans in regions with less economic purchasing power. Localized landing pages and more are a very simple way to pull this off. And you should do this
And finally, the biggest “exception” is non-transparent pricing. I.e., “Call Me”. Every type of deal is priced differently. Your UK team may need more flexibility in Call Me deals that your San Francisco team. And that’s OK, up to a point. Just be fair.
One last note: localizing pricing is one of those things that can consume a ton of team time for not much gain. Everyone will have an opinion, but will any changes here move the needle? Make sure you pencil out that it’s even worth the time, energy and effort to do more than discuss it over a lunch or two.
