Why should makers and creators care about "Purchasing Power Parity"?

It's a legitimate question which any business owner would ask as this pricing strategy might come across as counterintuitive. However, before we get into why we think providing discounts based on PPP is the way to go, let us share a bit about what it's like to come up in a developing country with a poor global purchasing power.

Both Gabriel and I love learning new stuff and in our search for the best learning material we always ended up on a lot amazing landing pages which sell premium courses.

Most of these courses have a price that’s more than fair, but usually the pricing is tailored for people based in developed countries such as the US, Canada, Western & Northern Europe and a few other countries scattered across the globe.

We grew up in Romania which is renowned for being anything but affluent. First of all, our country is shaped like a fish and (!!) Transylvania's an actual region. On a more serious note, the financial strain to educate ourselves using the best resources on the web was quite big, especially during the years while we were students.

We started learning online about 10 years ago. To put things in perspective, below is a graph showcasing the PPP of several countries:

Any resident of those countries would have to pay the same price for a course, despite the fact that they live in a developing country and earn less than 50% compared to their counterpart who lives in a developed country. A ranking of average monthly net salary by country can be found under here, but we’re not here to lecture you on Economics. :)

Basically, it can be a bit difficult for someone who earns $600 per month (after tax) to make education their priority, which is probably the reason why many resort to acquiring courses via torrents.

On a macro level, the world is rapidly changing and each of us has to constantly acquire or improve our skills. This is another aspect which makes it a bit difficult for people based in developing countries. Curriculums - even those you can find in Universities - are often far behind the current practices in the business world, making it even harder for individuals to develop a set of skills which would make them relevant on the global market.

For the most part, these were the reasons which prompted us to launch PPP Makers. Course creators often end up losing sales as part of their audience finds the price unaffordable. On the other hand, potential customers might not be able to purchase a course despite their interest in learning, so they end up acquiring it through other methods.

Thanks to the course makers and products you will find on this website, knowledge-hungry young people around the world will benefit from location-based discounts which, in turn, will help makers focus on what they do best and create more amazing content - instead of worrying their business might flop!

On the other hand, a 50% discount off the full price for someone located in Eastern Europe might mean the difference between making $0 or 50% on a sale for creators. If you sell something that has low hosting costs or is easy to "duplicate", your costs won’t really suffer. Your business might actually grow as a result of adopting a more inclusive pricing strategy.

A few good reasons why you would want to integrate PPP in your pricing strategy:

1. We promise you’ll stop receiving sob stories from people asking for discounts or freebies.

2. You will acquire new customers which might have been scared by the initial price.

3. Your audience will notice you are aware of their circumstances and you understand the fact that not everyone might be able to afford to pay the full price.

4. Your course or product receives free advertising from websites like ours. :)

5. You’ll also get some more free advertising from delighted customers tweeting about the fact that you have adapted your pricing based on PPP! :)

If you found this website helpful and you’d like to support our project, you can do so by buying us a coffee. We own espresso machines so the proceeds will be used to fund other projects meant to make the world a better place as we have enough caffeine to support us through a potential apocalypse.