Friday, April 12, 2013

App Store Pricing: What Works and What Doesn't

Image of a dollar signWe diverge from our regular program to bring attention to an important piece about pricing in the App Store, what works and what doesn't, depending on the category of the app. Interspersed within the series of articles are lessons in economics to help developers grasp how to maximize their profits when selling their apps. If the link doesn't work, copy and paste the link down below:

Too lazy to read it? Finance and Graphics apps make money, Weather and Social apps don't, but IAPs can make you money. You can maximize revenue by increasing prices if your product is "sticky" and difficult to replace. Here's the most important paragraph:

And this is really one of the most important points to begin to take away from this data. Not all apps are created equal. 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 they will give you money. Cheap apps might get downloads, but higher priced apps pay the bills.

Good things to think about from a developer's standpoint.

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