This week we're going to take a different tact and explain one of the different practices we follow and why; Worldwide Adapted Pricing.
The quickest version is that we don't use currency conversion to set prices, we use a group of measures to try and price our digital products according to the income the blue collar workers are paid in each country. For a fuller explanation, click "Read More" below.
When Lyrebird Tales was nothing more than an idea, we decided to focus mainly on the digital products, which despite some unusual tax implications has meant that our works are available for purchase worldwide through various channels (Each works page has a list of distributors you can purchase from). This is a major boon, but comes with a complex question; how to price the works in currencies not our own.
The simplest solution, and one of that is usually used, is to just convert the price of the works from our local currency to other countries' currencies, using as up to date exchange rates as we can. This results in the work being worth the same money not matter where it's purchased, allowing us specifically to know how much profit we'll make on each copy without much fuss. However, as currency itself is a commodity, it is subject to fluctuations in it's value, and thus the price of our work. We found that we'd quickly price ourselves out of some markets (our works being way too expensive) converting it this way. Also philosophically, we don't believe it's fair that the attractiveness of any country to outside investors effectively sets the comparative worth of each worker's work in a country. So we needed to find a different way to convert our prices without starting at currency conversion and changing each country as we start to sell physical copies there and can get a better understanding of the market. Our strategy is Worldwide Adapted Pricing.
Essentially, we researched both the minimum and average wages in as many countries as we could gather that specific data on, and the average value of each currency within it's own currency (using data from various sources, but the World Bank and International Monetary Fund being two very important ones.) and we've come up with a process to convert our pricing more fairly. Our prices start with our local currency (AUD) are converted and then checked against several measures and the currency converted price. If the converted price is cheaper, we go with that, but it's very rare that we default to this option, otherwise the price is what you see on the various online stores.
Lastly, we'll update these prices once a year, early on into each new year, so you can be sure the books will remain at their prices for most of the year, barring any sales we may have in the future.
For anyone who made it this far, thanks for reading this little look behind the curtain, and we hope this strategy makes the book more within your grasp.
Until next time,
Brad & Matt.