{"id":7225,"date":"2013-04-01T13:19:20","date_gmt":"2013-04-01T18:19:20","guid":{"rendered":"http:\/\/mjtsai.com\/blog\/?p=7225"},"modified":"2013-04-01T13:19:20","modified_gmt":"2013-04-01T18:19:20","slug":"understanding-app-store-pricing","status":"publish","type":"post","link":"https:\/\/mjtsai.com\/blog\/2013\/04\/01\/understanding-app-store-pricing\/","title":{"rendered":"Understanding App Store Pricing"},"content":{"rendered":"

Michael Jurewitz<\/a>:<\/p>

In fact, if we take a look at the percentages, apps on the Top Grossing list are, on average, 294% more expensive than apps on the Top Paid list. Meanwhile, the median price of an app on the Top Grossing list (again, the middle of the dataset) is 329% more expensive than the Top Paid list.<\/p><\/blockquote>

Part 2<\/a>:<\/p>

If you create a single serving app that mostly solves an occasional need then sure, I’ll give you a cup of coffee’s worth of cash for it. But if you fundamentally change my life, how I work, or make it easier for me to get more done with less effort, I will pay you truckloads of cash. Most users are exactly the same. Solve a big need for them in a simple, delightful, and thoughtful way and theywill <\/strong><\/em>give you money<\/em>. Cheap apps might get downloads, but higher priced apps pay the bills.<\/p><\/blockquote>

Part 3<\/a>:<\/p>

As a simple thought experiment, I want you to think about the price of your app right now. Just think about it. Now think about how many people bought your app last week. If you doubled<\/strong> the price of your app, and you end up losing less than<\/strong> 50% of your buyers, you just made money<\/strong>. Think about that for a moment. If the percentage change in your price is greater than the percentage change in units sold, you just made money.<\/p>

As it turns out there are a lot of other fringe benefits from higher prices. Fewer customers means lower supports costs. Lower support costs means more revenue going toward development and future products.<\/p><\/blockquote>

Part 4<\/a>:<\/p>

If you want to make money and be a lasting part of this community, find hard problems to solve<\/strong>and solve them<\/strong>. Be a domain expert in something. Solving hard problems not only helps the people who have these hard problems, it also creates a barrier to entry for the next person.<\/p><\/blockquote>

Part 5<\/a>:<\/p>

And yet, despite their looks they were typically very featureful and commanded an average selling price of $54.79. This was reassuring insofar as it made it clear we had a more premium market, operating at a sustainable price, and likely in desire of a well organized, easy to use tool. So with that in mind we set out to try Kaleidoscope 2 at two different price points — an initial launch at $34.99 and an eventual full price of $69.99.<\/p><\/blockquote>","protected":false},"excerpt":{"rendered":"

Michael Jurewitz:In fact, if we take a look at the percentages, apps on the Top Grossing list are, on average, 294% more expensive than apps on the Top Paid list. Meanwhile, the median price of an app on the Top Grossing list (again, the middle of the dataset) is 329% more expensive than the Top […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"apple_news_api_created_at":"","apple_news_api_id":"","apple_news_api_modified_at":"","apple_news_api_revision":"","apple_news_api_share_url":"","apple_news_coverimage":0,"apple_news_coverimage_caption":"","apple_news_is_hidden":false,"apple_news_is_paid":false,"apple_news_is_preview":false,"apple_news_is_sponsored":false,"apple_news_maturity_rating":"","apple_news_metadata":"\"\"","apple_news_pullquote":"","apple_news_pullquote_position":"","apple_news_slug":"","apple_news_sections":"\"\"","apple_news_suppress_video_url":false,"apple_news_use_image_component":false,"footnotes":""},"categories":[2],"tags":[91,101,31,30,39],"class_list":["post-7225","post","type-post","status-publish","format-standard","hentry","category-technology","tag-appstore","tag-business","tag-ios","tag-mac","tag-macappstore"],"apple_news_notices":[],"_links":{"self":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts\/7225","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/comments?post=7225"}],"version-history":[{"count":1,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts\/7225\/revisions"}],"predecessor-version":[{"id":7226,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts\/7225\/revisions\/7226"}],"wp:attachment":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/media?parent=7225"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/categories?post=7225"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/tags?post=7225"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}