Localized Pricing with Paddle: Boosting Conversion Rates

Hi, I'm Alex, and welcome back to the Boathouse Paddle series, where we look at everything concerning Paddle. Today's topic is localized pricing—showing your product prices in a currency that's more familiar to your customers. Why would you do that? Well, in general, it increases conversion. People are more inclined to buy your product or subscribe to your product if they see a currency they are familiar with.

Why Localized Pricing Matters

Localized pricing involves displaying product prices in the local currency of your customers. This strategy is crucial for a number of reasons:

1. Increased Trust: Customers feel more confident purchasing when prices are shown in their own currency.
2. Reduced Friction: Eliminates the need for customers to convert prices in their heads, making the buying process smoother.
3. Higher Conversion Rates: Customers are more likely to complete a purchase when they see familiar currency.

In general, displaying product prices in a familiar currency increases conversion.

Enabling localized pricing

In Paddle, there are two main ways to implement localized pricing:

1. Automatic Currency Conversion
2. Custom Price Overrides

Automatic Currency Conversion

Let's start with the automatic option. Here’s how to set it up:

1. Head over to your account.
2. Navigate to Business Accounts and then Currencies.
3. Underneath your balance currency, you'll see an option for Automatic Currency Conversion.
4. Click Manage to select one or all of the currencies that Paddle supports.
5. Hit Save.

During checkout, your product prices will be automatically converted into a currency that's as close to the customer as possible.

Note on Supported and Unsupported Currencies: Some currencies are not supported, but if there is one, the checkout will display in that local currency. However, this conversion applies only to the checkout process.

Country-Specific Price Overrides

If you prefer more control over your pricing, you can set custom price overrides for specific countries. Here's how:

1. Go to the Catalog section and select your product.
2. Navigate to the Prices section.
3. Open the Country Specific Pricing tab.
4. Search for the country you want to set a specific price for.
5. Input your desired price for that country and save.

For example, let's say you want to set a price of £80 for customers from the United Kingdom instead of the default $99. You can easily do this in the Country Specific Pricing section.

Good new - you can combine both methods!

The beauty of Paddle is that it allows you to combine both automatic and custom pricing. Overrides apply first, and if none are set, the automatic currency conversion will take over. This ensures your prices are always displayed in a way that’s most favorable for your customers.

Showing localized prices

If you display a pricing table on your marketing website, you’ll need to integrate Paddle.js to get those prices displayed in the local currency as well.

This is handled automatically for you if you use Boathouse the customer portal for Paddle. Boathouse automatically reflects localized prices in your pricing tables without additional configuration.

<script src="https://cdn.paddle.com/paddle/v2/paddle.js"></script>
<script>
  Paddle.Environment.set("sandbox");
  Paddle.Initialize({
    token: "REPLACE_ME",
    pwCustomer: {},
  });
  Paddle.PricePreview({
    items: [
      {
        priceId: "pri_013_REPLACE_ME",
        quantity: 1,
      },
    ],
  }).then((result) => {
    document.getElementById("price").innerHTML =
      result.data.details.lineItems[0].formattedTotals.total;
  });
</script>

Conclusion

Implementing localized pricing can significantly boost your conversion rates by providing customers with a seamless and familiar purchasing experience. Paddle makes it easy to set up both automatic conversions and custom overrides, ensuring you have full control over how your prices are displayed globally.

Thanks for reading, and stay tuned for more in our Boathouse paddle series!