

How much is your app worth? - redbluething
http://andrewhoyer.blogspot.com/2011/03/how-much-is-your-app-worth.html

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rendezvouscp
I did a similar thing for my iOS app[1]. It was free for months, and I started
charging for it last October. I raised the price by a dollar every week, and
sometimes kept the price for a bit longer than a week if I thought it might
have been influenced by other factors (like new updates).

I was surprised to see that my app’s sales averaged to be about the same at
every price point (some price points had more, some had less, but there was no
consistent trend downward as the price rose). Thus, my revenue maximized at
the highest price point I tried ($9.99) and I kept it there.

I presume that my experiment was so flawed that the results aren’t conclusive
(rankings, ratings, etc. all changed throughout the experiment), but I was
happy enough with the results that I went ahead and priced my app at $9.99 and
have kept it there ever since.

[1] Iron Money, a personal finance organizer. I include this here because I
have a feeling this might vary from category to category.

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redbluething
The more I read stories like this, the more I realise how random I have been
with my pricing. Time to test some prices :)

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Stormbringer
Exactly. As devs testing should be an ingrained habit, but it's not just the
code and the user experience that need testing :D

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Zev
The hardest part is convincing someone to spend any money. If you've done
that, the difference between charging $1 and $5 isn't going to be much.

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awolf
>iCarc is geared towards a fairly niche market, so I decided that having more
buyers was better than having a few at a high price.

I don't really follow this logic. My experience has been the lower you price
your app the worse the reviews. If you can charge a higher price and earn the
same revenue, do it. You'll build a higher perception of quality through
better ratings and in the long run I think this will earn you more customers.

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andrewhoyer
You have a great point here. My hope was that by getting more users, word of
mouth would play a bigger part because of the more limited market.

As a follow up test, I'm going to bump the price a bit and see what kind of
effect it has. It's possible that my interpretation of the price test results
wasn't quite right, and I should have been thinking up instead of down.

