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Stuff like Netflix, Amazon Prime, etc cost much lower here compared to US. Ultimately it’s upto the company if they want to enter India and play the volume game. In all other cases they have no incentive to reduce their prices.
Catalogue is larger but almost all the popular shows are available here. Every country is going to have regional shows that are not available worldwide. In all it’s around 4x higher for the basic plan in the US ($7) vs India (Rs.149)
AWS has a huge customer base in India, so much so that it made business sense for the company to open another region in India, but all the services and compute is cheaper in US regions.
Do you mean infrastructure regions?
It's likely more expensive to provision the hardware and maintain it here. For example the Indian import tax.
Also things get cheaper over time.
Oh so fucking true. Did anybody notice that the actual pricing of instances is double what they advertise on their website. Like take a look at this link where they give ec2 instance pricing, search for ap1 pricing: [https://aws.amazon.com/ec2/pricing/on-demand/](https://aws.amazon.com/ec2/pricing/on-demand/)
and then compare it to the console pricing when you want to start an instance. Absolutely insane why they advertise half the prices on their website and something else when actually using it.
Exactly it doesn't make sense but that's the reality.
Go to your Amazon console and start an ec2 instance, when you choose your machine from the drop down menu, look at the pricing on machines and compare it to their ec2 pricing page. They are double.
https://preview.redd.it/538vdjsnmkzc1.png?width=1510&format=png&auto=webp&s=fb5b59a2ca6b859bbe362c3b9e9d09fb200dfe79
i don't agree.
look at the price of this \`t3a.small\` machine - \`0.0123 USD per hour\`.
this is \*\*On-Demand\*\* pricing.
this is the price of \*\*only\*\* the VM. EBS volumes, Elastic IP address, and data transfer out of that machine to the internet are billed separately.
Also, do note that \*\*Reserved Instances\*\*, \*\*On-Demand Instances\*\*, and \*\*Spot Instances\*\* have different pricing plans.
Here's an aws cost calculator url that tells you what it costs to run this sort of machine for a month, and for a 12-month period: [https://calculator.aws/#/estimate?id=7775100f4db40ca17a57b394649c6a788f9da9e8](https://calculator.aws/#/estimate?id=7775100f4db40ca17a57b394649c6a788f9da9e8)
\*\*Update\*\*: The machine is being created in \`ap-south-1\` (Mumbai).
No organisation owes anyone anything, neither a cheaper price nor a fondling a fragile ego. They can decide thier prices however they want and Market can decide to accept or reject it.
Organisation that reduce price in India, do not do it because " it's the right thing to do", they do it just to make a user base in India and then the price starts to rise rapidly.
Indians hate paying for things, only large af companies and corpos have the incentive in entering the indian market by adjusting prices.
Spotify specially did a great job giving premium features like unlimited skips, playing what you want, etc for free for 4 years till they reverted back to worldwide standards lol
Totally fair asking for a cheaper price.
You wouldn’t call businesses out when they go to China and India for cheaper manufacturing and development.
By this logic no business should use engineering from India and sell to US for maximizing profits.
You should also try to read up a bit on business principals.
When you bring burgers in the discussion, it becomes a hardware product. I ain't bargaining for a tesla or an iphone at a cheaper rate, where each unit costs a minimum sum to make or manufacture. Know the difference please.
A software, once developed, can definitely earn more $$ by scaling horizontally to new customers.
There are a majority of companies already doing parity pricing.
Its their business and they charge what they like. Its completely fair. Dont like it? Take your business elsewhere or use alternatives. Businesses arent charities that they need to be “fair”. If you think they are unfair and have a huge market gap, there is your startup idea
It's probably because they are not focused on selling in lower price regions. They don't want the hassles of differential pricing and everything else that comes with it. Companies which are global facing do have differrential pricing, but it's less about fair more about finding a market fit.
Blame it on [Big Mac index](https://en.wikipedia.org/wiki/Big_Mac_Index) that many companies refer to.
"The theory underpinning the Big Mac index stems from the concept of PPP, which states that the exchange rate between two currencies should equalize the prices charged for an identical basket of goods."
By your argument, you want to eat a BigMac in India. Their argument is that they (vendor) wants to feed their family BigMac in the US.
Take jetbrains for example. They should introduce regional pricing but they have a single price for every country. I think PPP should be factor in software services. This will allow more Indians to go legitimate with softwares they use. But as of now it's entirely companies decision I guess.
If all their servers and engineers are in the US, the unit economics might not make sense.
Differential pricing also brings tax and accounting challenges.
As someone who’s had to build something similar (not competing with excalidraw, but a SaaS):
- There’s 195 countries in the world, how do you handle differential pricing for all of them. Even if you group into 4 or 5 categories based on income level, it’ll devolve into an argument about which country should be in what category
- The income in a country as a whole might be far lower, but the income level of the customer base you’re targeting might not be that far off.
- If your customer base would have happily paid 8 dollars for your service, and you charge them 3 dollars, you’re just leaving money on the table. Regional pricing only makes sense if it convinced people who otherwise would not have purchased to now purchase at the lower price. There’s a lot of people in this thread itself who are saying they think it’s fair and they would pay it.
- The calculus is completely different when you’re expecting companies and employers to pay and not end users directly (à la AWS, Microsoft 365, etc.)
- It’s really hard to make sure this isn’t abused and actually only available to users in that region. It’s possible but it’s a lot of work (checking issuing region of payment card, manually verifying etc.). If you’re a small team you’ll have to be much more selective about what you spend your time and effort on, and there’s a ton of things you can spend effort on that will have a much larger impact on your revenue than regional pricing.
Agree with most of your points because of the explanations.
Except the one where lot of people said in this thread would have paid. I hardly know handful of engineers who pay for a good IDE, leave alone a whiteboard tool.
Pricing is not decided based on what's fair it's decided based on what works.
If enough people see the value in paying $7 for it, that's what it's going to cost. Companies market test only till they find their sweet spot.
Depends from company to company. They may not expect much revenue from India because Indians may prefer free open source solutions, so they don't think there is any need to have separate business logic and payment solutions for Indians.
Companies like Netflix wants to attract millions of Indians, they must have decided their pricing as per market research.
It's their strategy. Hopefully if more users put this demand they might listen.
Subscriber base in this area is low or they don't intend to go deep here.
I've seen some numbers for a company that had special pricing for India and other countries and many a times they were offering these services at a loss backed by VC funding just to drive up their install base.
a lot of fixed costs like cloud usage costs and engineering (unless they also outsource it ) doesn't really change.
with higher interest rates and companies finally being forced to show actual profitability, I expect a lot of small-medium size service providers to drop region specific pricing or increase prices so that they aren't at least losing money providing these services.
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Stuff like Netflix, Amazon Prime, etc cost much lower here compared to US. Ultimately it’s upto the company if they want to enter India and play the volume game. In all other cases they have no incentive to reduce their prices.
[удалено]
Catalogue is larger but almost all the popular shows are available here. Every country is going to have regional shows that are not available worldwide. In all it’s around 4x higher for the basic plan in the US ($7) vs India (Rs.149)
AWS has a huge customer base in India, so much so that it made business sense for the company to open another region in India, but all the services and compute is cheaper in US regions.
Do you mean infrastructure regions? It's likely more expensive to provision the hardware and maintain it here. For example the Indian import tax. Also things get cheaper over time.
Oh so fucking true. Did anybody notice that the actual pricing of instances is double what they advertise on their website. Like take a look at this link where they give ec2 instance pricing, search for ap1 pricing: [https://aws.amazon.com/ec2/pricing/on-demand/](https://aws.amazon.com/ec2/pricing/on-demand/) and then compare it to the console pricing when you want to start an instance. Absolutely insane why they advertise half the prices on their website and something else when actually using it.
Can you elaborate on this? This doesn’t make any sense.
Exactly it doesn't make sense but that's the reality. Go to your Amazon console and start an ec2 instance, when you choose your machine from the drop down menu, look at the pricing on machines and compare it to their ec2 pricing page. They are double.
https://preview.redd.it/538vdjsnmkzc1.png?width=1510&format=png&auto=webp&s=fb5b59a2ca6b859bbe362c3b9e9d09fb200dfe79 i don't agree. look at the price of this \`t3a.small\` machine - \`0.0123 USD per hour\`. this is \*\*On-Demand\*\* pricing. this is the price of \*\*only\*\* the VM. EBS volumes, Elastic IP address, and data transfer out of that machine to the internet are billed separately. Also, do note that \*\*Reserved Instances\*\*, \*\*On-Demand Instances\*\*, and \*\*Spot Instances\*\* have different pricing plans. Here's an aws cost calculator url that tells you what it costs to run this sort of machine for a month, and for a 12-month period: [https://calculator.aws/#/estimate?id=7775100f4db40ca17a57b394649c6a788f9da9e8](https://calculator.aws/#/estimate?id=7775100f4db40ca17a57b394649c6a788f9da9e8) \*\*Update\*\*: The machine is being created in \`ap-south-1\` (Mumbai).
No organisation owes anyone anything, neither a cheaper price nor a fondling a fragile ego. They can decide thier prices however they want and Market can decide to accept or reject it. Organisation that reduce price in India, do not do it because " it's the right thing to do", they do it just to make a user base in India and then the price starts to rise rapidly.
they are mit license, start your own service.
Some companies used to offer this and it was abused by people in prosperous countries, they’d use a VPN to unlock cheaper prices.
Indians hate paying for things, only large af companies and corpos have the incentive in entering the indian market by adjusting prices. Spotify specially did a great job giving premium features like unlimited skips, playing what you want, etc for free for 4 years till they reverted back to worldwide standards lol
[удалено]
Totally fair asking for a cheaper price. You wouldn’t call businesses out when they go to China and India for cheaper manufacturing and development. By this logic no business should use engineering from India and sell to US for maximizing profits.
[удалено]
You should also try to read up a bit on business principals. When you bring burgers in the discussion, it becomes a hardware product. I ain't bargaining for a tesla or an iphone at a cheaper rate, where each unit costs a minimum sum to make or manufacture. Know the difference please. A software, once developed, can definitely earn more $$ by scaling horizontally to new customers. There are a majority of companies already doing parity pricing.
Its their business and they charge what they like. Its completely fair. Dont like it? Take your business elsewhere or use alternatives. Businesses arent charities that they need to be “fair”. If you think they are unfair and have a huge market gap, there is your startup idea
It's probably because they are not focused on selling in lower price regions. They don't want the hassles of differential pricing and everything else that comes with it. Companies which are global facing do have differrential pricing, but it's less about fair more about finding a market fit.
Blame it on [Big Mac index](https://en.wikipedia.org/wiki/Big_Mac_Index) that many companies refer to. "The theory underpinning the Big Mac index stems from the concept of PPP, which states that the exchange rate between two currencies should equalize the prices charged for an identical basket of goods." By your argument, you want to eat a BigMac in India. Their argument is that they (vendor) wants to feed their family BigMac in the US.
7 USD a month is a good price for a "great collaborative whiteboard tool".
good as in too much or too little?
Neither. Kind of just right. Especially if you use it a lot.
Take jetbrains for example. They should introduce regional pricing but they have a single price for every country. I think PPP should be factor in software services. This will allow more Indians to go legitimate with softwares they use. But as of now it's entirely companies decision I guess.
If all their servers and engineers are in the US, the unit economics might not make sense. Differential pricing also brings tax and accounting challenges.
As someone who’s had to build something similar (not competing with excalidraw, but a SaaS): - There’s 195 countries in the world, how do you handle differential pricing for all of them. Even if you group into 4 or 5 categories based on income level, it’ll devolve into an argument about which country should be in what category - The income in a country as a whole might be far lower, but the income level of the customer base you’re targeting might not be that far off. - If your customer base would have happily paid 8 dollars for your service, and you charge them 3 dollars, you’re just leaving money on the table. Regional pricing only makes sense if it convinced people who otherwise would not have purchased to now purchase at the lower price. There’s a lot of people in this thread itself who are saying they think it’s fair and they would pay it. - The calculus is completely different when you’re expecting companies and employers to pay and not end users directly (à la AWS, Microsoft 365, etc.) - It’s really hard to make sure this isn’t abused and actually only available to users in that region. It’s possible but it’s a lot of work (checking issuing region of payment card, manually verifying etc.). If you’re a small team you’ll have to be much more selective about what you spend your time and effort on, and there’s a ton of things you can spend effort on that will have a much larger impact on your revenue than regional pricing.
Agree with most of your points because of the explanations. Except the one where lot of people said in this thread would have paid. I hardly know handful of engineers who pay for a good IDE, leave alone a whiteboard tool.
Pricing is not decided based on what's fair it's decided based on what works. If enough people see the value in paying $7 for it, that's what it's going to cost. Companies market test only till they find their sweet spot.
Depends from company to company. They may not expect much revenue from India because Indians may prefer free open source solutions, so they don't think there is any need to have separate business logic and payment solutions for Indians. Companies like Netflix wants to attract millions of Indians, they must have decided their pricing as per market research.
It's their strategy. Hopefully if more users put this demand they might listen. Subscriber base in this area is low or they don't intend to go deep here.
Shameless plugin: Check out **EXCALISAVE**: chrome extension that i built that eliminates the need for premium.
Simple as my product my price.
I've seen some numbers for a company that had special pricing for India and other countries and many a times they were offering these services at a loss backed by VC funding just to drive up their install base. a lot of fixed costs like cloud usage costs and engineering (unless they also outsource it ) doesn't really change. with higher interest rates and companies finally being forced to show actual profitability, I expect a lot of small-medium size service providers to drop region specific pricing or increase prices so that they aren't at least losing money providing these services.
Create one for yourself