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How to Maximize Revenue with Regional Pricing — Dmitry Gurski, Flo
Mar 4, 2025
Dmitry Gurski, CEO and Co-Founder of Flo Health, leads the world’s largest health app with 73 million monthly users. He dives into the significance of regional pricing in app strategies, highlighting how iOS and Android users differ in emerging markets. He emphasizes the need to understand local audiences beyond simple economic indexes. Dmitry also shares how adaptive pricing can enhance user retention and unlock new revenue opportunities while stressing the mission-driven nature of their work in improving health access globally.
15:56
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Quick takeaways
- Understanding the unique demographics of app users is crucial for pricing strategies, as relying on generic indexes can lead to missed revenue opportunities.
- Measuring pricing success through Average Revenue Per User (ARPU) rather than conversion rates enables better retention and more informed pricing decisions.
Deep dives
The Limitations of Standard Pricing Models
Using simplistic pricing models like the Big Mac Index is ineffective for subscription apps, as they do not account for the unique demographics of app users compared to those purchasing everyday goods. For example, while a burger's price may serve as a general indicator of cost, the average subscription app user in a country like Brazil falls within more affluent categories and may primarily use iOS devices. This distinction leads to significant pricing discrepancies between regions, with iOS pricing often needing to be much higher to match the users' propensity to pay. Therefore, businesses must establish tailored pricing strategies rather than relying on generic benchmarks to optimize their revenue in diverse international markets.
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