Logos and Purchasing Power Parity

Many of biggest software companies have adjusted their pricing in different countries to allow for the differences in the average income and cost of living - also called the Purchasing Power Parity (PPP)

The truth is that what may seem reasonable priced in the US, might be prohibitively expensive in a different country, if the price is converted directly using the exchange rate.

For example buying the gold base package of $1549.95 will cost me almost R19000 (South African Rand). For most South African pastors that is about twice their monthly salaries if not more!

Taking PPP (using the Big Mac Index as an indicator http://www.economist.com/content/big-mac-index) in account, which indicates that the rand is 54% undervalued, the price should be closer to R8740. Still expensive, but now at least you don't have to use two months salary to purchase Logos!

Adjusting the price for different countries will probably increase the uptake of Logos in poorer countries and increase profits (which, if we are honest, is what Logos is about ;-).

Find more posts tagged with

Comments

Lew Worthington

Thanks for sharing. This is a concept I had only heard about, but I would be excited about seeing Logos easier to get for folks in such countries.

Matthew

https://community.logos.com/discussion/comment/740380#Comment_740380

I think if it could be done it would expand the Logos user base. There are two obstacles that come to mind. First, I seem to recall Bob saying somewhere on the forums that basr packages have to be kept around the $300 (US) mark or more in order for Faithlife to make any profit at all once support calls, etc, are taken into account. Unless something has changed, that factor would potentially limit which prices Faithlife can adjust and by how much. Second, precautions would likely be needed to prevent abuse, which inevitably would happen. There would at least be some eho would change their account address or manipulate their IP address to make Faithlife think they are in a country where they would qualify for a relatively lower price. Not shooting the idea down, just thinking through some issues that would need attention

David Ames

Many of biggest software companies have adjusted their pricing in different countries to allow for the differences in the average income and cost of living - also called the Purchasing Power Parity (PPP)

If we are retired can we also get the reduced prices? The normal Social Security monthly payment is $1200 with $100 taken for Medicare and $200 for health insurance and rents run around $800 leaving $100 for food, lights, heat, and Logos resources.