Flo Health · B2C · women's health app
Set separate country prices for iPhone and Android users
Android's best price is ~15-20% below iPhone in US/UK; far bigger gap in Brazil
Workedpricinglocalization
What they did
Do not derive regional prices from the Big Mac Index or from Netflix/Spotify local prices: your app's buyers in a country are not the average person there. In emerging markets like Brazil, iOS users are the richer part of society, so iOS prices can sit well above what an index predicts, while Android prices must be much lower. Flo finds optimal prices per country and per platform; regional prices are almost always below the US, and in rich countries (US, UK) the optimal Android price is only ~15-20% below iOS, while in countries like Brazil the iOS/Android gap is very large. Prices are set by testing rather than any benchmark, since age mix, platform mix, product type and culture all shift the optimum.
What happened
Guest reports optimal Android prices ~15-20% below iOS in rich English-speaking countries and a much larger gap in Brazil.
In their words
Sub Club by RevenueCat · How to Maximize Revenue with Regional Pricing — Dmitry Gurski, Flo“average customer of your subscription in Brazil, probably is among like more affluent part of society and probably use iOS device rather than Android device. And because of that, price may be much higher than your Big Mac Index, like, would predict.”
“Regions like Brazil, difference in optimal pricing may be huge because the richer part of society use iOS devices.”
Related topics
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More from Flo Health
All 10 Flo Health tactics- Give the core app away free, then sell add-on modules as users' needs change60M+ monthly users; thesis behind a $200M raise at a $1B+ valuation
- Sell higher tiers and extra features to people who already payCohort revenue retention ~60% in year one, then rising every year
- Hire a bank to run a competitive raise, then take more than plannedSet out for $100M; raised $200M at a $1B+ valuation
- Pitch the app as #1 in women's health instead of competing in all of healthBecame the first women's health unicorn: $200M+ raised at a $1B+ valuation
- Run over 100 experiments a monthGuest cites it as part of what made it a top health app; no direct numbers
More from this episode
- Flo Health: Test many prices in each country; keep the one with the most revenue per userHalf-price variants sometimes won: 3x retention and much higher revenue per user
- Flo Health: Cut the price sharply in BrazilBrazil revenue up hundreds of percent in a year; now a top-4 market
- Flo Health: Lower the local price so ads get enough sales to scale profitably in BrazilUnlocked profitable paid installs in Brazil; not possible at the higher price
- Flo Health: Give the full app free in 50+ countries where people can't pay20M+ free subscriptions given; no direct revenue or growth, but motivates staff and users