If we partner with resellers or distributors in other countries, should we let them set local prices (since they know the market) or require a consistent price to avoid disparities?

Based on the principles in our pricing strategy book, Price to Scale, the answer leans toward balancing central control with local market sensitivity.

• Establish a Base Price: Our book stresses the importance of setting a unified baseline that reflects your product’s core value. This base price serves as the anchor for all markets and helps maintain a consistent global brand perception.

• Allow for Controlled Local Adjustments: While local partners understand their markets well, full autonomy in pricing can lead to disparities that may erode brand value or create arbitrage opportunities. Instead, consider setting defined boundaries or guidelines—such as minimum or maximum pricing thresholds—that allow partners to adjust for local conditions (currencies, economic conditions, etc.), yet keep prices in a consistent range.

• Monitor and Communicate: Consistency isn’t just about numbers—it’s about the customer’s perceived value. As our book highlights, when prices differ too widely, it can distort the overall value proposition. Therefore, regularly review local pricing data and maintain open lines of communication with your partners to ensure that local tweaks are in line with your global strategy.

In summary, our recommendation is to establish a firm base price and offer local partners the flexibility to adjust within predefined limits. This approach leverages local market expertise while safeguarding global consistency—a key theme in Price to Scale.