Custom Blend Strategy

Fine-tune your pricing by blending exchange rate conversion with World Bank PPP data.

How It Works

The Custom Blend strategy lets you control how much purchasing-power adjustment is applied. A slider controls the balance between pure exchange-rate conversion and full World Bank PPP adjustment.

  • Drag the slider toward Exchange Rate for minimal localization
  • Drag toward Full PPP for maximum purchasing-power adjustment
  • The middle position provides a balanced blend

Example

With a base price of $4.99 USD and India (strong PPP discount):

Blend PositionIndia Price (₹)Description
Exchange Rate only₹416Full exchange rate price
Light PPP₹340Mostly FX, light adjustment
Balanced₹264Even blend
Heavy PPP₹188Strong purchasing-power adjustment
Full PPP₹112Full World Bank PPP
Custom blend slider showing weight between exchange rate and PPP
Dial in your exact balance between FX and PPP

When to Use

  • Gradual localization — Start conservative and increase PPP weight as you gain data
  • A/B testing — Compare revenue at different blend weights
  • Per-product tuning — Premium products might use lower PPP weight, impulse purchases higher
  • Data-driven teams — When you want precise control over the pricing model

Strategy

A common approach is to start with a 0.3–0.5 blend weight. This provides meaningful discounts in developing markets without going as far as full PPP. Monitor revenue per market and adjust.

Trade-offs

  • Requires tuning — No "right" answer for the weight; depends on your market
  • More complex — Harder to explain than single-model strategies
  • Per-product setting — Weight is configurable per product, so different products can use different blends

Data Sources

Combines data from both:

  1. Live exchange rates — Reliable FX rate providers
  2. World Bank PPP — Official World Bank purchasing power data

Tier Requirement

Available on Growth and Scale tiers.

Was this page helpful?