this post was submitted on 03 Aug 2023
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Pricing according to purchasing power parity is a must. People keep clamouring about how its just a price of coffee/beer when the entire argument is baseless.
How does PPP relate in this scenario? The price of the goods (in this case Sync) is the same wherever in the world it is available and whatever currency it is offered in, no?
No. Google doesn't automatically prices the apps in accordance to purchasing power parity. Many devs are not even aware of this. The setting is available for the devs and only some of them change the pricing according to how it should be for that particular region.
I think the point of the person you replied to is that it doesn't make sense to use PPP for pricing. The dev charges x. They live from the money made paying the app. Just because a user lives somewhere where PPP is lower doesn't change the developers costs.
And i will tell you that a good number of devs have indeed reduced the pricing when I have pointed out the anomaly... Including a very relevant app developer.
The basics of business is to sell the commodity enough to make profit on the investment. If you have enough buyers, you can lower the pricing. Else somebody else struts out and steals the potential user base, the exorbitant pricing strategy for a considerable user base will come down to a naught.
Well you might call it exorbitant but that's up for debate really. In my eyes it's not exorbitant.
Especially given what a niche Lemmy is. So the dev might not even Break even on the costs.
'in my eyes'
That is the entire crux of the argument. And thank God that the 80-85% of the devs don't feel averse to the entire concept of purchasing power parity.
If you haven't dabbled in activities/studies as to how one can reduce the value factor while relying on the volume to not only start making some profit BUT ALSO ensuring the 'first mover's advantage', this will be a long drawn and possibly a futile discussion. I have said what was required, while having first hand experience of interacting with the devs who agreed, so that is it from my side. Ciao.