You have a great product or service. Customers in the Netherlands love it. And now you’re looking beyond the border. But what should it cost in Germany? Poland? Or the U.S.? Good news: there’s a surprisingly simple tool to help you figure that out. A hamburger.
The hamburger that knows more than your accountant
The Big Mac Index is a concept that has been around for decades. It was originally conceived by *The Economist* as a lighthearted way to illustrate purchasing power parity between countries. The idea is simple: a Big Mac consists of the same ingredients, is prepared in the same way, and is sold in the same manner all over the world. Therefore, the price of a Big Mac in different countries provides insight into local purchasing power.
In the Netherlands, you currently pay around €5.20 for a burger like that. In India? That’s about €2.40. In Switzerland, it’s over €7.50. These differences aren’t random. They reflect wages, rent prices, tax rates, and what people are willing to pay.
For business owners, this means the following: if your subscription, service, or product is priced based on the Dutch market, that price is ridiculously high in some countries. And in other countries, you’re leaving money on the table.
From hamburgers to pricing strategy
Imagine this: you’re selling a SaaS subscription for €5 a month. That sounds affordable. In the Netherlands, that’s 0.2% of the average monthly wage. In Vietnam, that same amount represents a larger portion of the average income. In Norway, it’s practically pocket money. The same price, but a completely different perception.
This is exactly why a well-thought-out international pricing strategy is essential if you’re serious about expanding beyond the Netherlands. Not only in terms of competitiveness, but also in terms of conversion rates. A price that doesn’t align with local purchasing power will drive customers away, even if your product is fantastic.
The Big Mac Index doesn’t give you an exact formula, but it does provide a reliable barometer. And the best part? You don’t have to be an economist to understand it. All you need is a good prompt.
The AI prompt that does the work for you
Justin from JKC tested it himself: simply ask the AI what the correct prompt is to see how your price compares to the Big Mac Index for each country. The result is an immediate, actionable analysis, broken down by country, including an assessment of affordability for the local population.
Here is the prompt you can copy and use right away in ChatGPT, Claude, or another AI:
I sell [describe your product or service] for [price] per [month / year / one-time fee]. It is a [B2B / B2C] product aimed at [target audience, e.g., small businesses / consumers / freelancers].
Use the Big Mac Index (most recent data available) and purchasing power parity (PPP) to analyze how affordable this price is in the following countries: [list countries].
Assume that a price is “acceptable” if it amounts to less than 1% of the average monthly net income in that country.
For each country, list the following in a table with four columns:
- Big Mac price in local currency (converted to euros)
- Price rating: high / acceptable / low
- Estimated reach: What percentage of the target audience can afford this without difficulty?
- Recommendation: Adjust the price, keep it as is, or develop a local version?
Conclude with a list of the top 3 most promising markets based on the analysis.
Present the results clearly by country.
Tip: Replace the text in parentheses with your own information.
Here's what the result looks like
To demonstrate that this really works, we tested the prompt using a concrete example: a subscription costing €5 per month. Below is a simplified overview of the results. This is the kind of insight you would normally hire a market research firm to provide.
| Country | Price assessment | Available for | Advice |
|---|---|---|---|
| 🇳🇱 Netherlands | ✅ Acceptable | ~90% of the population | No changes needed |
| 🇩🇪 Germany | ✅ Acceptable | ~88% of the population | No changes needed |
| 🇵🇱 Poland | ⚠️ On the high side | ~65% of the population | Consider a lower starting price |
| 🇮🇳 India | ❌ Relatively expensive | ~30% of the population | Local pricing recommended |
| 🇺🇸 United States | ✅ Acceptable | ~92% of the population | Possibly even increase |
| 🇧🇷 Brazil | ⚠️ On the high side | ~50% of the population | Consider a freemium model |
| 🇯🇵 Japan | ✅ Acceptable | ~85% of the population | No changes needed |
* This is an illustrative example based on AI analysis. Use it as a starting point, not as a definitive benchmark.
Do you see the pattern? With just a single prompt, you can already tell which markets your price is right for and where you should consider making adjustments. That provides direction. Direction provides focus. Focus drives growth.
Why this is relevant to your growth strategy
AI is increasingly being used by business owners who want to make faster and smarter decisions. Not because AI knows everything, but because it can turn massive amounts of data into actionable insights. The Big Mac Index is a perfect example of this: publicly available economic data, combined with a well-crafted prompt, delivers actionable information within 30 seconds.
This aligns perfectly with JKC’s approach to AI: not as a fad, but as a tool. We don’t believe AI should replace human thinking—rather, it should enhance it. Whether you want to refine your digital strategy or solve specific marketing challenges, AI helps you find the answers faster.
Key points at a glance
- The Big Mac Index is a simple yet effective tool for comparing purchasing power across countries.
- The same price might be a no-brainer in one country and a hurdle that no one is willing to cross in another.
- With a good AI prompt, you can check your pricing strategy by country in less than a minute.
- The results provide you with concrete starting points: adapt, keep, or develop a local variant.
- Doing business internationally without price analysis is like driving on the highway with your eyes closed.
Do you want to go beyond the Big Mac?
The Big Mac Index is a great starting point, but it’s not the end of the story. If you’re serious about doing business internationally, there are other factors to consider: local competition, distribution costs, tax regulations, and cultural perceptions of price. In some markets, a higher price actually works better because it boosts trust and the perception of quality.
But this kind of analysis starts with a solid data foundation. And building that foundation—both in terms of the website and the marketing strategy—is exactly what JKC does. From Eindhoven, Rotterdam, and now Atlanta as well.
Curious about how we do it? Check out our solutions or read about how we work with other business owners in our case studies.
Frequently Asked Questions About the Big Mac Index and Pricing Strategy
What exactly is the Big Mac Index?
The Big Mac Index is a measure developed by The Economist to illustrate purchasing power parity between countries. Because a Big Mac is made the same way everywhere in the world, its price reflects local income levels. For entrepreneurs, it’s an accessible way to determine whether a price is realistic on an international scale.
Can I really base my pricing strategy on a hamburger?
Not just that, no. The Big Mac Index is a starting point, not a final verdict. Local competition, tax structures, and cultural perceptions of price also play a role. But as an initial gauge of whether your price is in line with what the market can handle, it works surprisingly well. Especially when combined with targeted AI analysis.
Which AI tool is best suited for this analysis?
ChatGPT and Claude are both well-suited for the prompt in this blog. Both tools have access to basic economic data and are capable of reasoning effectively about purchasing power parity. Use the prompt as described, enter your own product and price point, and compare the results. It’s always a good idea to get a second opinion from a different tool.
When should I actually adjust my prices by country?
If the AI analysis indicates that less than 60% of the population can easily afford your price, that’s a sign that you should consider a local variant, a lower entry-level price, or a freemium model. Above 75%, your price is generally solid. Anything in between requires a deliberate decision.
