The parity price of a digital product is its price adapted to the purchasing power of another country.
Let's say you make $US10/hour in America and $5/hour in Brazil. Buying a $US10 product online requires you to work 2 times more. Therefore parity price of that product in Brazil is $US5.
Individuals don't have to same purchasing power then businesses. We've created a B2B Parity price index to help you adapt your parity prices for a B2B audience. These numbers are general recommendations and can always be improved. If you need specific pricing advice, reach out, we'd love to help.
It's not. If we consider the example above, the parity price of our $US10 product for the average Brazilian customer is both $US5 or $BR25.78.
You can offer Parity pricing without using foreign currencies, by giving out localized promotions, or prices. It will remove some friction, but not all of it (see why below).
By offering your customers to pay in their local currencies, you help them save between 1% and 6% on conversion fees. For you, it means lower friction during checkout, and sales increase by 14% on average.
If you're wondering which currencies you should offer first to maximize revenues for the least amount of risk, read our Top 20 currencies for your SaaS article.
Parity-related numbers are from OECD and World Bank. Currency rate are provided by xe.com and updated daily.