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Tuesday, 7 February 2017

What Does the Big Mac Index Have to do with E-Books?


If you don't know, the Big Mac Index is an attempt by some pretty smart economists to come up with a realistic estimate of purchasing parity, that you can't get by looking at official currency exchange rates.

In a nutshell, it compares the average price of a McDonald's Big Mac burger (which is available in pretty much every country in the world) in different countries, and uses that to try and figure out how much each currency is worth. If you know how many Big Macs you can buy with $1 in the United States, and how many Big Macs you can buy with R1 in South Africa, you in theory know how much your Rand is really worth in America.

According to official currency exchange rates, the dollar is worth just less than R14 in South Africa, but I recently read an article, saying that according the Big Mac Index, it should be worth more like R5.

That got me thinking: because of the nature of indie publishing, the base price of all my books tends to be in US Dollars, but when you convert that to Rands, it makes those books very expensive. And since I am, in fact, a South African author, that's not fair. So I decided to do something about that.

Out of all the stores where my books are available, only two of them allow me to directly set the price in South African Rands. I went and worked out what the Dollar price would be in Rands, if I used the Big Mac Index, and of course it's significantly lower than it would be if you used the official exchange rate.

Take a look for yourself, if you're in South Africa. Click each link below, then scroll down and click "See Stores" to see the list of stores where each book is available. Then click either Kobo or Google Play (the only two stores which allow me to directly set the price in Rands). Pretty cheap, huh?


I didn't just do it for South Africa, of course, so if you're in any other country besides the United States, you should notice the lower prices too. You just need to click on a store that has an official presence in your country.

So what this means in practice is that, on Kobo or Google Play, all books except Stingers cost only R9.99 (Stingers costs R10.59).

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