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Background: Hey, I'm Maximilian, the solo founder of boost (shameless plug: https://boost.fit). Even though my app is currently completely free to use i investigated how to size my pricing tiers in the future. In the process i came across a number of app ratings of competitor apps coming from poorer countries saying the respective app is nice but way too expensive for a local.
Problem: That got me thinking - Apple, as well as google are currently loosely converting each pricing tier based on currency and taxes. This makes apps overpriced per default when e.g. my yearly subscription of $89,99 in the US is ₹6,000 in India ($80.46 converted)
Question(s): To price my app fair and in a way that it's perceived cost is equal in regards to local purchasing power i thought about factoring in PPP (Purchasing Power Parity index) or the Big-Mac-Index[1]. Has anyone experience with adjusting prices of a digital product to local purchasing power in general? Is the fear of arbitrage or people from richer countries buying products in foreign App-Stores the reason this is not done?
[0]Purchasing Power Parity: https://en.wikipedia.org/wiki/Purchasing_power_parity [1]Big Max Index: https://en.wikipedia.org/wiki/Big_Mac_Index [2]My app: https://boost.fit