Does your SaaS follow PPP Pricing?

Rohan Chaubey
2 replies
On Jan 18, 2023, a Time's exclusive report revealed OpenAI used Kenyan workers on less than $2 per hour to make ChatGPT less toxic (content moderation). However, this month when OpenAI is launching ChatGPT Plus subscription worldwide, we noticed they do not apply PPP pricing. It is incredibly interesting to see the disparity between the way salaries and subscription costs to software and services are treated in different regions. It is well-known that salaries are often adjusted based on the location of the job, with people in lower-income regions earning less than their counterparts in higher-income regions, even if they are doing the same job. This is done to reflect the cost of living and the relative purchasing power of the region. However, this same principle is rarely applied to the cost of subscription services for software and other products. It is not fair that people in low-income regions are expected to pay the same subscription fees as those in high-income regions, especially considering that the cost of living is often significantly lower in these regions. This means that these people are essentially paying a much higher percentage of their income for the same service. It's time for SaaS companies to recognize that PPP pricing is the fair and equitable approach to subscription pricing. By adjusting the cost of subscription services based on the purchasing power of different regions, companies can ensure that their products are accessible to everyone, regardless of their income. This is not only the right thing to do, but it is also good for business, as it helps to expand the customer base and increase revenue. PPP pricing should be the standard. The economy is heavily moving today's subscriptions. If countries that offer good value for money keep paying extra for every subscription, how is it fair? Share your thoughts in the comments!

Replies

Samar Ali
Agreed, PPP pricing is the fairest and most equitable approach to subscription pricing.