Regional Price Adjustments

A framework for international pricing strategy based on regional differences in willingness to pay, derived from extensive pricing data analysis across multiple markets.

Core Regional Price Variations

• Nordics: 30% higher than US baseline (after accounting for exchange rates)
• Southeast Asia: 40% lower than US baseline
• Revenue boost potential: 15-20% through proper localization

Key Pricing Principles

• Change something about pricing every 3 months

  • Package modifications
  • Market positioning adjustments (up/down market)
  • Add-on offerings
  • Discount strategy updates

• Focus on add-ons

  • Boost lifetime value by 20-50%
  • High-growth companies typically have 12+ add-ons
  • Customers usually see only 1-2 relevant add-ons
  • Example: Priority support for 10% of list price

Implementation Guidelines

• Measure success through revenue per customer

  • Should consistently trend upward
  • Growth rate varies by company stage
  • Consider as part of broader metrics including overall revenue

• Price increase communication

  • Don't focus on company costs
  • Frame around customer value
  • Use tested communication templates
  • Implement gradually, starting with new customers

Common Mistakes to Avoid

• Waiting too long between price changes

  • Average company waits 3 years
  • Should review at least annually
  • Fear is primary barrier to regular updates

• Ignoring international market differences

  • Missing significant revenue potential
  • Not accounting for regional value perception
  • Failing to localize pricing strategy