Big Mac Index Strategy
Use The Economist's Big Mac Index as a real-world purchasing power proxy for your app pricing.
How It Works
The Big Mac Index, published by The Economist, compares the price of a Big Mac across countries as a simple proxy for purchasing power. BasePrice uses this data to adjust your prices based on real consumer affordability.
If a Big Mac costs less in a country relative to the US, the adjustment reduces your price. If a Big Mac costs more, your price increases.
Example
With a base price of $4.99 USD:
| Country | Big Mac vs US | Adjusted Price |
|---|---|---|
| 🇨🇭 Switzerland | More expensive | CHF 5.21 |
| 🇬🇧 United Kingdom | Cheaper | £3.15 |
| 🇧🇷 Brazil | Much cheaper | R$12.88 |
| 🇮🇳 India | Much cheaper | ₹171 |
When to Use
- Consumer-facing apps — The Big Mac is a consumer product, making it a relevant proxy
- Intuitive model — Easy to explain to stakeholders
- Moderate adjustment — Less aggressive than World Bank PPP, more than pure FX
Trade-offs
- Limited country coverage — Not all countries have Big Mac data (BasePrice uses the best available regional data to fill gaps)
- Updated periodically — Less frequent than exchange rate updates
- Consumer-biased — May not perfectly reflect digital goods affordability
Data Source
Data sourced from The Economist's publicly available Big Mac Index, refreshed regularly.
Tier Requirement
Available on Growth and Scale tiers.