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Show HN: Purchasing Power Parity Calculator

Abishek_Muthian 5y ago
One of the easiest way to increase global sales of our SaaS products is to sell our product in the local currency of our market. But there's another mechanism to increase the sales even further, That's pricing our product according to the purchasing power of the market. Those who sell physical products have been doing this from the beginning of the global trade, But SaaS product developers often tend to ignore the value in pricing the products according to the purchasing power. After all, A product price should be what the market is willing to pay! Besides increasing the sales, I think it's the right thing to do. I wanted to price my products according to the Purchasing Power Parity but the existing calculators are all outdated or non-functional. So I had to build one myself and I'm sharing it with you all folks today. As for the development, I've been a vanilla JS guy and wanted to experiment with the reactive libraries for a while. Recent selection of Vue.js by Wikimedia Foundation piqued my interest in it and so this project was perfect opportunity to explore Vue.js. Let me know if the figures from the PPP calculator reflects the reality in your country.
mwambua 5y ago
Cool tool! It would be great if you showed the PP-adjusted value converted to USD (Using current exchange rates). It might make it easier for me to understand the values for countries I haven't lived in. For example, $1 USD allows me to buy the same things that $1.21 CAD would in Canada... but $1 USD is approximately $1.27 (https://www.xe.com/currencyconverter/convert/?Amount=1&From=USD&To=CAD https://www.xe.com/currencyconverter/convert/?Amount=1&From=...)... meaning costs are pretty similar in the two countries.
- Abishek_Muthian 5y ago
  Thank you. You're correct the PPP rates doesn't reflect the exchange rates, It's based on market basket of common goods. According to the Wiki[1], >> Ideally, a computer in New York and in Hong Kong should have the same price. If its price is 500 US dollars in New York and the same computer costs 2000 HK dollars in Hong Kong, PPP theory says the exchange rate should be 4 HK dollars for every 1 US dollar. [1] https://en.wikipedia.org/wiki/Purchasing_power_parity#Conversion https://en.wikipedia.org/wiki/Purchasing_power_parity#Conver...

One of the easiest way to increase global sales of our SaaS products is to sell our product in the local currency of our market. But there's another mechanism to increase the sales even further, That's pricing our product according to the purchasing power of the market. Those who sell physical products have been doing this from the beginning of the global trade, But SaaS product developers often tend to ignore the value in pricing the products according to the purchasing power. After all, A product price should be what the market is willing to pay! Besides increasing the sales, I think it's the right thing to do. I wanted to price my products according to the Purchasing Power Parity but the existing calculators are all outdated or non-functional. So I had to build one myself and I'm sharing it with you all folks today. As for the development, I've been a vanilla JS guy and wanted to experiment with the reactive libraries for a while. Recent selection of Vue.js by Wikimedia Foundation piqued my interest in it and so this project was perfect opportunity to explore Vue.js. Let me know if the figures from the PPP calculator reflects the reality in your country.

mwambua 5y ago

Cool tool! It would be great if you showed the PP-adjusted value converted to USD (Using current exchange rates). It might make it easier for me to understand the values for countries I haven't lived in. For example, $1 USD allows me to buy the same things that $1.21 CAD would in Canada... but $1 USD is approximately $1.27 (https://www.xe.com/currencyconverter/convert/?Amount=1&From=USD&To=CAD https://www.xe.com/currencyconverter/convert/?Amount=1&From=...)... meaning costs are pretty similar in the two countries.

Abishek_Muthian 5y ago
Thank you. You're correct the PPP rates doesn't reflect the exchange rates, It's based on market basket of common goods. According to the Wiki[1], >> Ideally, a computer in New York and in Hong Kong should have the same price. If its price is 500 US dollars in New York and the same computer costs 2000 HK dollars in Hong Kong, PPP theory says the exchange rate should be 4 HK dollars for every 1 US dollar. [1] https://en.wikipedia.org/wiki/Purchasing_power_parity#Conversion https://en.wikipedia.org/wiki/Purchasing_power_parity#Conver...