For a start-up providing a web-app to customers on a subscription basis, do you think that the benefits of different geographic pricing outweigh the downside?
My rationale is that while North America is the largest individual technology market, other countries in aggregate are pretty sizeable, yet due to different income levels and currency exchange rates North American/European subscription prices may be too expensive for these markets. My thought would be to provide different pricing (expressed in local currencies, eg. US$1 = AU$1 = EU1 per user) depending on the originating country IP address and have this then associated with that user's account. This would only occur for very specific markets (eg. North America, South America, Europe, Oceania, etc.)
Market segmentation and tiered pricing is often spoken about in regard to product classes, but at least for saas, not in terms of customer geography. What do people think of this approach? Does anyone have any experience with this?
(Note that I'm not suggesting trying to exploit higher income markets, but rather provide more affordable subscriptions in countries with a lesser-valued currency/lower incomes. Clearly, this could quickly become very messy!)