Should we localize our prices for certain markets (for example, offer lower pricing in countries like India or Brazil to match those markets’ willingness-to-pay), or is it better to stick to one global price to avoid arbitrage?

Based on our SaaS pricing book, Price to Scale, the decision to localize pricing versus using a single global price isn’t a one-size-fits-all answer—it depends on your market segmentation and go-to-market strategy.

Here are some key points to consider:

• Market Segmentation:
If your customer base is highly heterogeneous—such as when selling in emerging markets like India or Brazil versus more mature markets—a localized pricing strategy can help match the regional willingness-to-pay. This allows you to capture market share by aligning prices with local purchasing power.

• Balancing Complexity and Arbitrage Risks:
While adjusting prices can maximize revenue in each region, it also opens up issues like arbitrage (where customers may exploit lower prices in certain markets). To counter this, companies should implement safeguards such as geolocation restrictions, regional licensing terms, or other controls to manage cross-market purchasing.

• Alignment with GTM Strategy:
Our book emphasizes that pricing strategy should always align with your overall go-to-market approach. For instance, if you serve both mid-market and enterprise markets, you may benefit from differentiating pricing in a way that speaks to each group’s value perception. Localizing prices for specific markets can be part of that strategy when the benefits of capturing additional revenue or market share outweigh the risks of arbitrage.

In summary, as discussed in Price to Scale, if your target markets differ significantly in their willingness-to-pay, a localized pricing strategy may be warranted—provided you also implement measures to minimize arbitrage. Conversely, if your market is relatively homogeneous or if you prefer simpler pricing logistics, a single global price might be a better fit for your business.