<p>I would like to price a product fairly for lower-income countries (e.g. Egypt, Thailand, ...) so that it is attainable for companies doing business in said country.</p>
<p>If I sell a product that costs $100 in the U.S., then it will implicitly cost more in Indonesia. Is there some sort of table/calculation where I can find out how to fairly price the product (within reason) for other countries?</p>
<p>I don't have much knowledge in this area and stumbled across the PPP (which is around 5 in Egypt, for example), but I'm unsure how to apply this. Does a PPP of 5 mean that I would need to sell the product that costs USD 100 in the US for USD 20 in Egypt?</p>

CC BY-SA 4.0
2024-08-14T16:16:09.613Z
I’m voting to close this question because personal finance is not on topic on this site
WilliamT
CC BY-SA 4.0
2024-08-14T16:21:38.580Z
Ehm what? Personal finance? How is this question related to personal finance? It's a question about selling a commercial product. But yeah, thanks for your help.
Lucky Luke
CC BY-SA 4.0
2024-08-14T16:22:39.283Z
Yes, and you are selling the product, so it is your personal finance/business.
WilliamT
CC BY-SA 4.0
2024-08-14T16:30:07.690Z
It is a largely theoretical question that relates to economy, doesn't it? If I don't ask it here, then where do I ask it? Your comment and actions are detrimental to this platform.
Lucky Luke
CC BY-SA 4.0
2024-08-14T16:33:11.407Z
I think for business questions the Money stack is the correct stack. How is me following the rules of this site detrimental? If you read the rules of this site it says no personal finance questions.
WilliamT
CC BY-SA 4.0
2024-08-14T16:36:10.927Z
How is this a personal finance question? It's a general question about how one would price a product for different economies. But I rest my case, I already found a useful resources so I don't have to waste my time on the stackexchange platform anymore. All you self-proclaimed "moderators" are just wasting everyone's time.
Lucky Luke
CC BY-SA 4.0
2024-08-14T19:41:04.713Z
@WilliamT  The question is about an economic aspect of management of a business.  As such it is arguably on-topic.  You seem to be saying that any question by a business owner as to what they should do is automatically a question about personal finance.  I think most people would understand personal finance somewhat more narrowly.  Note also that the guidance on Personal Finance & Money SE includes in its list of off-topic subjects "Questions about small business that have no bearing on personal finance".  While acknowledging that this is a hard case, I have voted to leave open.
Adam Bailey
CC BY-SA 4.0
2024-08-14T19:47:13.810Z
@LuckyLuke  I don't understand your comment about "All you self-proclaimed "moderators"".  When you posted that comment, only WilliamT, who is not a moderator, had downvoted your question or argued that it was off topic.
Adam Bailey
CC BY-SA 4.0
2024-08-14T19:56:40.260Z
Maybe use the bic mac index: https://www.statista.com/statistics/274326/big-mac-index-global-prices-for-a-big-mac/
Jesper Hybel
CC BY-SA 4.0
2024-08-14T19:59:03.897Z
I think this is a perfectly fair question. Take away the personal aspect of the question there is a very central economic question at the core.
Jesper Hybel
CC BY-SA 4.0
2024-08-14T20:13:23.890Z
@AdamBailey That comment was for WilliamT, he made it seem like he is a moderator, based on his comment about voting to close this question.  In retrospect I should have just ignored his comments. Sorry & thank you.
Lucky Luke
CC BY-SA 4.0
2024-08-14T20:18:04.543Z
@JesperHybel I heard about the BigMac index and it seems like a statistic worth trying, I was wondering if there was something a little more nuanced out there, taking more factors into consideration.
Lucky Luke
CC BY-SA 4.0
2024-08-14T20:38:06.473Z
You would have to consider at least two factors: (1) the exchange rate and (2) the buying power of the companies you have in mind relative to the buying power of comparatively similar companies in the US. It is hard to answer the question due to a lack of information about the product and the companies. One answer could also be that the market sets the fair price, so if the companies you have in mind are buying a product A that could be argued is similar to the product B you want to sell, they should be priced similarly.
Jesper Hybel
CC BY-SA 4.0
2024-08-14T21:41:19.990Z
@AdamBailey to me it seems like personal finance, I can be wrong, I do not claim to be always correct, 1 vote alone cannot close the question. I think it is too much about personal finance so I cast a vote. I don't understand why people make big deal out of it, it wasn't a personal attack, also I did not down-voted the question
WilliamT
CC BY-SA 4.0
2024-08-14T22:30:05.050Z
@WilliamT  As you say, you didn't downvote the question.  I confused voting to close with downvoting.  Apologies.
Adam Bailey
CC BY-SA 4.0
2024-08-14T23:18:10.940Z
By fair you simply mean that you want it to cost everywhere same after accounting for price level? If that's what you want to do then PPP conversion to the US price is the best option. However, PPP does not take into account of wealth, income, consumption etc inequality, and so on.
1muflon1
CC BY-SA 4.0
2024-08-15T16:52:36.470Z
The question is mainly about a fictional software product. Could be some inventory software, accounting program, security software etc. I'm just curious how you can price a product fairly, given different purchasing power in different countries.
Lucky Luke
<purchasing-power-partity>
Pricing a commercial product for lower-income countries
Lucky Luke
# Pricing a commercial product for lower-income countries

(Asked by: username_0 on 2024-08-14)

I would like to price a product fairly for lower-income countries (e.g. Egypt, Thailand, ...) so that it is attainable for companies doing business in said country.

If I sell a product that costs $100 in the U.S., then it will implicitly cost more in Indonesia. Is there some sort of table/calculation where I can find out how to fairly price the product (within reason) for other countries?

I don't have much knowledge in this area and stumbled across the PPP (which is around 5 in Egypt, for example), but I'm unsure how to apply this. Does a PPP of 5 mean that I would need to sell the product that costs USD 100 in the US for USD 20 in Egypt?

**Tags:** purchasing-power-partity

> **Comments:**
> **username_1**: I’m voting to close this question because personal finance is not on topic on this site  
> **username_0**: Ehm what? Personal finance? How is this question related to personal finance? It's a question about selling a commercial product. But yeah, thanks for your help.  
> **username_1**: Yes, and you are selling the product, so it is your personal finance/business.  
> **username_0**: It is a largely theoretical question that relates to economy, doesn't it? If I don't ask it here, then where do I ask it? Your comment and actions are detrimental to this platform.  
> **username_1**: I think for business questions the Money stack is the correct stack. How is me following the rules of this site detrimental? If you read the rules of this site it says no personal finance questions.  
> **username_0**: How is this a personal finance question? It's a general question about how one would price a product for different economies. But I rest my case, I already found a useful resources so I don't have to waste my time on the stackexchange platform anymore. All you self-proclaimed "moderators" are just wasting everyone's time.  
> **username_2**: @username_1  The question is about an economic aspect of management of a business.  As such it is arguably on-topic.  You seem to be saying that any question by a business owner as to what they should do is automatically a question about personal finance.  I think most people would understand personal finance somewhat more narrowly.  Note also that the guidance on Personal Finance & Money SE includes in its list of off-topic subjects "Questions about small business that have no bearing on personal finance".  While acknowledging that this is a hard case, I have voted to leave open.  
> **username_2**: @LuckyLuke  I don't understand your comment about "All you self-proclaimed "moderators"".  When you posted that comment, only username_1, who is not a moderator, had downvoted your question or argued that it was off topic.  
> **username_3**: Maybe use the bic mac index: https://www.statista.com/statistics/274326/big-mac-index-global-prices-for-a-big-mac/  
> **username_3**: I think this is a perfectly fair question. Take away the personal aspect of the question there is a very central economic question at the core.  
> **username_0**: @AdamBailey That comment was for username_1, he made it seem like he is a moderator, based on his comment about voting to close this question.  In retrospect I should have just ignored his comments. Sorry & thank you.  
> **username_0**: @JesperHybel I heard about the BigMac index and it seems like a statistic worth trying, I was wondering if there was something a little more nuanced out there, taking more factors into consideration.  
> **username_3**: You would have to consider at least two factors: (1) the exchange rate and (2) the buying power of the companies you have in mind relative to the buying power of comparatively similar companies in the US. It is hard to answer the question due to a lack of information about the product and the companies. One answer could also be that the market sets the fair price, so if the companies you have in mind are buying a product A that could be argued is similar to the product B you want to sell, they should be priced similarly.  
> **username_1**: @AdamBailey to me it seems like personal finance, I can be wrong, I do not claim to be always correct, 1 vote alone cannot close the question. I think it is too much about personal finance so I cast a vote. I don't understand why people make big deal out of it, it wasn't a personal attack, also I did not down-voted the question  
> **username_2**: @username_1  As you say, you didn't downvote the question.  I confused voting to close with downvoting.  Apologies.  
> **username_4**: By fair you simply mean that you want it to cost everywhere same after accounting for price level? If that's what you want to do then PPP conversion to the US price is the best option. However, PPP does not take into account of wealth, income, consumption etc inequality, and so on.  
> **username_0**: The question is mainly about a fictional software product. Could be some inventory software, accounting program, security software etc. I'm just curious how you can price a product fairly, given different purchasing power in different countries.  

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## 0 answers

