Pricing software differently for each country, does it make sense?

[kv331]

Hi fellows,

Now that we are getting ready for selling SynthMaster 2.0, we are trying to make important decisions: In some parts of the world, there's so much piracy that it's almost impossible for us to sell our software. I have two examples: my dear homeland Turkey (!) and Russia.

But I still believe that that are people in those countries that can afford software around $30-$50. So, why not price the software differently in those countries? Even Microsoft does this here in Turkey, they sell Office at very low prices to students/teachers.

Do you think that would work? It's easy to detect the country based on IP address. There can be another layer of security check by calling the customer's phone number so that you make sure that they are really purchasing from their country

BTW, we'll have academic pricing as well dont forget that For students/teachers/academics our price will be %50 off. We'll require proof of identity though, or the user's email address be from an .EDU domain address!

[dacaumodo]

How about pricing it so that it's affordable for everybody? The problem with the solution you propose is that customers in "richer" countries may have the impression that they're being milked...UNLESS you manage to keep this pricing scheme as discreet as possible.

[D-Fusion]

How about pricing it so that it's affordable for everybody? The problem with the solution you propose is that customers in "richer" countries may have the impression that they're being milked...UNLESS you manage to keep this pricing scheme as discreet as possible.

I agree.
Just look at Cakewalk where we in Europe have to pay 2-3times more for the product compared to the rest of the World (Which is a bad business model in my view).

This would also prove that Warez users get even more benefit in the market than loyal legit Buyers which would send out a wrong signal.

Why should Warez users that might not buy any product ever be rewarded and i don't think that they would buy it even if it costs $10 since they already have it for free.

[kv331]

Why should Warez users that might not buy any product ever be rewarded and i don't think that they would buy it even if it costs $10 since they already have it for free.

I have that doubt too.

Good discussion folks, thank you!

[Igro]

Addicted to warez not buying stuff even for 5 Dollars.
But idea is good btw.
But how you define poor countries in Europe? There are a lot. Baltic states for example(Latvia, Lithuania, Estonia), Central Europe(Romania, Slovakia and so on). They are poor.

By what criteria you will choose them and sort out.

Suggestion: I saw in the internet table of minimum wages for each country. That is what you need.

[Shabdahbriah]

How about pricing it so that it's affordable for everybody? The problem with the solution you propose is that customers in "richer" countries may have the impression that they're being milked...UNLESS you manage to keep this pricing scheme as discreet as possible.

I agree.
Just look at Cakewalk where we in Europe have to pay 2-3times more for the product compared to the rest of the World (Which is a bad business model in my view).

This would also prove that Warez users get even more benefit in the market than loyal legit Buyers which would send out a wrong signal.

Why should Warez users that might not buy any product ever be rewarded and i don't think that they would buy it even if it costs $10 since they already have it for free.

+1

There will be those who will buy it, and those who will steal it, no matter what you price it at.

[2c]

[breakmixer]

Hi fellows,

Now that we are getting ready for selling SynthMaster 2.0, we are trying to make important decisions: In some parts of the world, there's so much piracy that it's almost impossible for us to sell our software. I have two examples: my dear homeland Turkey (!) and Russia.

But I still believe that that are people in those countries that can afford software around $30-$50. So, why not price the software differently in those countries? Even Microsoft does this here in Turkey, they sell Office at very low prices to students/teachers.

Do you think that would work? It's easy to detect the country based on IP address. There can be another layer of security check by calling the customer's phone number so that you make sure that they are really purchasing from their country

BTW, we'll have academic pricing as well dont forget that For students/teachers/academics our price will be %50 off. We'll require proof of identity though, or the user's email address be from an .EDU domain address!

It should be one price, in dollars! Remember, even in the UK we are hard up now...also buisness is a game of numbers, better to sell 3 products at $50 than one at $100, keep the price low and it'll sell more surely and the more happy users the more word spreads and the sales keep coming in, I think alot of plugins are way overpriced - this is due to not enough getting sold, to me a good priced plugin is $79 and under, if it's a sample based (big) plugin then $200 seems fair.....One price for everyone, I'm still toying with buying Synthmaster2, I like it....but I already have 9 or so VA's, would it offer anything different pallette wise......?

[geroyannis]

I think it's a good idea to have different prices. There are people who live in situations and places where something that costs $30 is not exactly an impulse-buy, as it is for some other folks.

Of course even if someone can't spend $30 there are many excellent freeware programs. But if you gave him one more option, offering your program at an affordable price for him, then maybe you would both gain something. He would be able to get your great synth, and you would have one more customer.

[jonnyG]

Remember that a lot of apparent pricing disparities come from the fact that if a product originates in the E.U. then customers in the E.U. have to pay VAT (at the rate due in the country of origin) and customers outside the EU don't. [/a bit off-topic mode]

The Socialist in me would like to see pricing that was relative to average earnings in each country. The Capitalist in me would not like to see countries with piracy problems rewarded with lower prices. I firmly believe that some people will pirate, no matter how cheap the product.

[ghettosynth]

...

[kv331]

would it offer anything different pallette wise......?

Well, wavetable/wavescanning/additive synthesis plus massive modulation possibilities if you're into sound design

[jeffb01]

Very interesting conversation. The two best points so far has been:

1. Do what makes you the most profit.
If you think you can make some good money by selling it cheap in poorer countries or whatever - do it.

2. Be Discreet.
This is important. When my in-laws bought a condo recently, the seller/builder offered all kinds of crazy incentives like buying down the interest rate and giving a cash back incentive. This cost the condo seller money but the records will always show that the actual price paid for the place was full price and hence the next buyer (maybe when the economy is better) will be willing to pay that price since that's what everyone else paid for it (and they'll never know about the $30,000 in incentives my in-laws got). No one wants to pay more for something than it's worth and no one wants to feel like they're being taken. People want life to be fair. Once I get over that dumb idea myself, I'll be happy.

[GeorgeZ]

Jeff speaks a lot of sense. I echo his opinion, but would also add, and that is a critical point to me, what Shabdahbriah said.
"There will be those who will buy it, and those who will steal it, no matter what you price it at."

I honestly think that this kind of thing SHOULD NOT be up for public opinion though, and that you should run your business. Make the decision. Don't let randoms on the internet do it for you, cause it's gonna turn to sh!t... Just a honest opinion.

-GeorgeZ

PS: In saying that, the last bit I mean, it is your business, so do as you please

My suggestion, not related this topic, is to, if you want a broader public view on a topic, start your own focus group with people that you might know a bit better from here on KVR or where ever, that you know aren't fruitloops (guess that's me out then )... and then, for the love of..., do this in private via email, or email voting or whatever.

[kv331]

Got the message folks, thank you all!

[GeorgeZ]

Nono, thank you