How I’m making my prices fairer

Mums’ English Circle is a global community, we want to be open to all mothers around the world. But we know the world is not fair, and what is reasonable prices for English lessons in one country is very expensive in another.

From today you’ll be able to pay for Mums’ English Circle under Purchasing Power Parity rules.

What does that mean?

Purchasing Power Parity helps to level prices by understanding what an average income and spending feels like in different countries.

For example

In the USA the average income is about $5500 a month.

In Russia it’s $930. Check here for data

Looks like a big difference, right?

But we know that goods and services in Russia do not cost the same as in the USA. But it’s hard to compare. For example if you rent apartment in New York City, you might pay $1000 or even up to $5000 a month, but an apartment in Moscow could be just $300, or over $2000.

So how can we compare two countries?

Purchasing power parity is an economic theory that takes the price of a basket of goods (for example milk, rice, a cake, a t-shirt and some pencils) and compares the cost with the average income for each country. Then we can compare between countries and see how powerful that makes our purchasing.

Now I’m introducing this to my prices, and it means different people will pay different amounts depending on the country you live in. Using PPP will give a fairer price.

But it won’t apply to every country

The countries with highest purchasing power are Bermuda and Switzerland. The USA is often used as an average point in PPP (because the world’s economy system uses US dollars as its standard.) The USA also has high purchasing power, as does Canada, western Europe, Australia or Japan, so if you live in these countries you will not find a discount. Spending $50 in these countries does feel different, but there is not as big a gap between these countries and Africa or South America, for example.

It’s not a perfect system.

It works by country, and by averages, so that doesn’t account for huge differences between people in the same country, or differences between a majority and a ethnic minority person in any country.

It’s a small step. It’s a small step towards making English lessons a little bit fairer.

You can read more about PPP here or watch a video here

If you’re a mother who wants to use your English more, and chat with other mums around the world, join us in Mums’ English Circle. Get all the details here

Published by Abbie

English teacher, coach and writer. Helping English learners and teachers get more confident in their skills.

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