Why Locamundo Uses PPP-Based Pricing

Locamundo's Evolution

During the time that Locamundo has been around, the product has developed into a very good software for managing locations. For many years, our focus has been on the countries in our immediate area. We had a very difficult time establishing ourselves in countries with lower purchasing capabilities.

Challenges in Lower Purchasing Power Markets

Of course, we have always had customers from these countries as well, but the focus ended up on large companies with financial muscle that could pay for their presence on Locamundo.

Customer Feedback and Realization

A number of years ago, I received an email from two people independently of each other. But both had the same issue. They had downloaded a free trial of Locamundo and of course they thought the product was fantastic to use.

The Pricing Problem

Their problem was that they were relatively new to the industry. They had both started working a couple of years ago, and now they were mainly doing work for location agents in their own country. They saw in Locamundo the opportunity to market their locations without having to go through location agencies. They also saw the possibility that these agencies could search for locations directly in their archive for further collaboration. Their problem was that they could not afford Locamundo. It was too expensive to use.

The Birth of a Fair Pricing Model

At the same time, I was discussing different ways of measuring purchasing power in different countries depending on purchasing power. The Mac index is a system that aims to show how much it costs to produce a hamburger in a certain country. The price in the restaurant was indicative of purchasing power.

Implementing PPP Pricing

PPP is an established system where you can get information about purchasing power from different countries. That's when the idea of a fairer system in Locamundo was born. That's why we've had differentiated prices in Locamundo ever since. We simply hope that this will lead to more people and companies finding it affordable to use our product.

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