

Ask HN: One solution to the iPhone app pricing problem - credo

I started writing this as a response to http://www.streamingcolour.com/blog/2009/07/13/my-iphones-not-cheap-but-my-apps-are/ , but most other comments seemed to talk about the lack of marketing for that app.
So I thought that this topic may merit a seperate discussion.<p>I'm curious to know what other people think about in-app purchases and using that as a solution for the pricing problem that plague most iPhone apps.
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My recommendation/solution for the problem:
Release a low-priced app with a lot of value
Then provide additional features at a fair price through in-app purchases.<p>The base app should be cheap (and packed with value). The cheap price should be able to address the entry barrier for customers and the app should convince users of the value of the app.<p>Customers who've tried out the base version of the high-value app will then be more inclined to a pay a "fair" price (as opposed to a super-cheap price) for incremental features.
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One risk with this approach is that some users who've purchased an app may be annoyed to find that some new features (in updates) aren't free.
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wmf
Interesting. This could provide price discrimination, solving the problem that
an app is worth less to some people who don't use all the features -- those
people just don't buy those features. OTOH it introduces mental transaction
costs.

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ScottWhigham
I've had my iPhone for about six months and I've yet to find an app that I
would pay even $0.99 for let alone $5-$20. Having an in-game upgrade option
would not appeal to me. I'm likely different from most though - I want my
phone for calls, browsing, music, email, and the occasional time-waster while
sitting in an office waiting room. I don't want it to replace my computer.

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credo
you mention music. Would you pay for music on your iPhone and have you looked
at any of the apps in the "Music" category

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ScottWhigham
No but I pay for music each month via an emusic.com subscription.

