If we set different price points in different regions, how do we prevent customers from exploiting the differences (e.g., using VPNs or other workarounds to buy from a lower-priced region)?

Our book “Price to Scale” emphasizes that when setting different price points across regions, it’s critical to design your pricing strategy in a way that minimizes the risk of customers exploiting lower prices. While the book doesn’t address VPN circumvention explicitly, here are some key principles drawn from our pricing philosophy that you can apply:

• Use clear, segmented pricing policies – Establish explicit guidelines for region-specific pricing. For example, you might adopt “no-downgrade” policies similar to the ones discussed in our book. This means that once a customer buys a subscription at a certain price (or with specific features tied to a region), you don’t allow them to access a lower price later, even if they try to switch regions.

• Tie pricing to verified customer data – Although not detailed in a specific chapter, our overall approach supports leveraging customer segmentation. In practice, that could translate to using robust geo-verification techniques (such as payment methods, address confirmation, or device identification) so that only eligible customers benefit from a region-specific price.

• Differentiate the product offerings – As highlighted in our book, the packaging itself can be structured to make it less appealing to “game” the system. For instance, you might design packages that offer tiered value beyond just the price point. This means customers who try to exploit a lower regional price might realize that they’re not getting the complete feature set or value which is only available in their designated market.

• Integrate technological and business safeguards – While our book primarily focuses on data-driven and strategic pricing tactics, it also acknowledges that implementation details (such as adopting geo-blocking or IP-based restrictions) form an important part of a broader pricing protection strategy.

In summary, preventing exploitation of regional price differences involves a mix of clear pricing policies, robust customer verification, and thoughtful product packaging. By aligning your regional pricing with these practices, you can maintain market segmentation while reducing the risk of customers circumventing regional differences.