# A Crash Course in Price Localization

DevFeed: [A Crash Course in Price Localization](<https://devfeed.tech/articles/a-crash-course-in-price-localization-19080.md>)

Original publisher: [Read original article](<https://httptoolkit.com/blog/international-product-pricing/>)

Author: HTTP Toolkit; Tim Perry

Published: 2019-10-28T14:30:00Z

Content type: article

Language: en

Sources: [HTTP Toolkit](<https://devfeed.tech/sources/http-toolkit.md>)

Topics: [Localization (l10n)](<https://devfeed.tech/topics/localization.md>), [experiments](<https://devfeed.tech/topics/experiments.md>), [Software](<https://devfeed.tech/topics/software.md>), [coding](<https://devfeed.tech/topics/coding.md>)

Tags: [amazon](<https://devfeed.tech/tags/amazon.md>), [business](<https://devfeed.tech/tags/business.md>), [course](<https://devfeed.tech/tags/course.md>), [developers](<https://devfeed.tech/tags/developers.md>), [experiment](<https://devfeed.tech/tags/experiment.md>), [experiments](<https://devfeed.tech/tags/experiments.md>), [india](<https://devfeed.tech/tags/india.md>), [netflix](<https://devfeed.tech/tags/netflix.md>), [product](<https://devfeed.tech/tags/product.md>)

## AI overview

This article explains why a single worldwide price can misfit software customers in different local markets. Using HTTP Toolkit, software engineer salary comparisons, and examples involving Netflix and Amazon in India, it argues for experimenting with localized pricing to balance affordability, market reach, and revenue.

## Source excerpt

Naming a price for your latest magnum opus is one of the hardest decisions in releasing a product. In theory you price on the value you're providing, but wow that's hard to measure. Instead it's better (and often easier) to experiment: try a price, see how it converts and what that means for the bottom line, try another, compare, repeat. If you're selling software on the internet (like me) then your pricing experiments are probably missing a key variable: the customer's local market. In this post, I'm going to show you why that's important for your bottom line, explain how to think about this kind of pricing, and give you the tools I'm using to fix this for HTTP Toolkit (my product), starting next week. Why Localized Pricing Matters Right now HTTP Toolkit costs EUR 5/month, and I'm selling to software engineers. In the US (average software engineer annual salary $84,000 = EUR 76,000 = EUR 200/day) that's extremely cheap. In India however (average software engineer salary INR 502,000 = EUR 6,400 = EUR 17/day) it's completely unaffordable. This is a real problem. These are two very different markets, but they're both full of my target audience (professional software developers). They're also actually very similar-sized markets: India is predicted to have more developers than the entire US by 2024. Although it's likely the US will be more profitable regardless, it is a crowded & expensive market to enter, and the majority of developers in the world don't live there (notably this is true for every country). If you're building a paid software product that isn't fundamentally tied to a specific location, you have this same dilemma. You can price high and ignore big parts of the world, or price lower and undervalue your product in the richest parts of the world. Regardless, if you pick one price worldwide, you'll pick the wrong price for most of your potential customers. One classic example of this: Netflix vs Amazon in India. Netflix were charging $7.50 per month, similar to their US prici