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They go great lengths to justify why salaries are paid location based: https://about.gitlab.com/2019/02/28/why-we-pay-local-rates/

I think that's a wise decision because it allows you to stay where you are without pushing you into another country just to benefit from lower living costs while having a comparatively high income.

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Shouldn't they also price they product according to location of buyer?

Yeah, to attract people already living in high COL areas you have to pay them well otherwise they'll work local which will track to the living expenses.

But why not move to a higher COL area if you can get the same living style. If you're putting x% of your savings away (this is what COL does) then the person in the higher COL nets more savings.

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