Choosing the right pricing strategy can mean the difference between leaving revenue on the table and capturing every market. Here's how each approach works, when to use it, and what to watch out for.
There is no single “best” strategy. The right choice depends on your app category, target markets, and revenue goals. Here are general guidelines:
| If… | Consider |
|---|---|
| Most revenue from US/EU/UK | Exchange Rate |
| Growing in LATAM, South Asia, Africa | World Bank PPP |
| Consumer app; price sensitivity matters | Big Mac Index |
| Subscription/digital product | Netflix Index |
| Strong correlation between income and willingness to pay | GDP-Adjusted |
| Want to hedge multiple signals | Custom Blend |
FAQ
It depends on your market mix. If most of your revenue comes from the US and EU, Exchange Rate conversion may be sufficient. If you want to maximize downloads in emerging markets like India, Brazil, or Southeast Asia, PPP-based strategies (World Bank PPP or Big Mac Index) will better match local purchasing power. When in doubt, a Custom Blend lets you hedge between approaches.
Yes. Many developers use exchange rates for developed economies and PPP-based strategies for emerging markets. Tools like BasePrice let you preview the output of each strategy side-by-side before choosing.
Exchange rates change daily. The World Bank updates PPP factors annually. The Economist refreshes Big Mac Index data twice a year. Netflix adjusts pricing by market several times per year. GDP data is updated annually by the IMF and World Bank.
The underlying economic concepts apply to any digital product — SaaS, games, e-books, subscriptions. However, mobile apps have a unique constraint: Apple and Google require you to pick from predefined price tiers, which means your calculated price must snap to the nearest valid tier.
BasePrice lets you preview prices from all 6 strategies side-by-side and publish to both stores in one click.