How Purchasing Power Parity increased my sales
The name purchasing power parity comes from the idea that, with the right exchange rate, consumers in every location will have the same purchasing power. — Wikipedia
Since the launch of my SaaS and Chrome Extension Boilerplate Shipped.club in December, I wanted to apply the concept of PPP (Purchase Power Parity) to its price.
The reason is that my main goal with Shipped.club is to empower indie makers, solopreneurs, and software engineers (maybe on the side of a 9-5 job), to launch their products as effortlessly as possible.
To do so, a fixed price would have been a barrier for those countries with a lower purchase power compared to others, making the product less accessible.
This is what I did. I used a service called Parity Deals, which is very simple, yet effective.
It integrates with my favorite Merchant of Record and payment processor, Lemon Squeezy — but also with many other payment services — and it creates a set of discount codes with different percentages, according to the purchasing power of the countries.
Then, I had to include a JavaScript code snippet into the landing page of Shipped.club.
When a person lands on the website, if they come from a country eligible for the discount, a banner is shown at the bottom of the page.
Yes, this system is not perfect of course, but still, in my opinion, it gives the possibility to more people to take advantage of the product.
And the data seems to confirm that. The discounts have been used 107 times on a total of 167 orders!
So far I’m very happy about this experiment, and to be able to empower more and more developers.
What do you think?
See you next Sunday with more updates.
Luca
Whenever you are ready, I have something to help you.
Shipped.club is the Next.js Startup & Chrome Extension Boilerplate for busy developers, that allows you to build, ship, and make money with your product quickly
167 makers are already shipping like a machine 🔥
