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How to sell an iPhone app for $9.99

Marco over on the Instapaper blog (which, of course, is the blog of the app Instapaper), posted a really interesting commentary recently on a subject we've been following since the beginning: App Store pricing. As we've said before, it's a strange thing -- developers want higher prices so that they can put more effort into making iPhone apps better. But customers have a perception already that anything above $5 in the App Store just isn't worth it.

So Marco offers his take: he's been selling an app in the store for $9.99, and it's going just fine. He has tips for how developers can sell their own apps for a higher price, and he settles on some good compromises for everybody: deliver a real value with your app (as economists know, an app is worth what people are wiling to pay for it, so if you produce an app that is worth $10, people will happily spend that much). Respect yourself as a developer, and don't cower to cheapskates (some people won't be happy with anything, even when it's free). And perhaps most importantly: offer a free version.

That last one may be the key -- our own Michael Rose was sold on Instapaper only when he tried it out. More and more, I'm thinking that it was a major mistake on Apple's part not to allow developers to easily offer demos and upgrades in the same app -- people are willing to spend money on an app that's worth it, but not if they aren't sure, and trying it goes a long way to making sure. I'm not in favor of app store developers banding together to raise prices, but Marco is right: if you make an app that's worth $10 and put it on the App Store for $9.99 (with an easy way to demo it out), people will come and buy it.

Marco over on the Instapaper blog (which, of course, is the blog of the app Instapaper), posted a really interesting commentary recently on...
 

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Andy Teves

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January 06 2009 at 4:38 AM Report abuse rate up rate down Reply
Gavin Anderson

I totally agree that Apple should have (a LONG time ago) made a way for developers to offer an expiring demo version of their apps. I constantly try out free version of apps, and if I like them, I DO buy them. If they sick, well then, I haven't wasted any money. I hate taking a chance on a pay-only app, only to find out that it was USELESS. I won't name any names here; I've left my reviews on the app store.

But all in all, I fault Apple for this. I have been a long-time Mac user, since before there was a Mac, and I've Apple make some pretty stupid decisions lately. Problem is, they're still better than a PC, so we're kind of stuck with them. But seriously, if there was another decent platform out there, I'm at the point where I would leave Apple.

December 02 2008 at 11:10 AM Report abuse rate up rate down Reply
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November 30 2008 at 11:14 PM Report abuse rate up rate down Reply
kyle

Interesting comments.

Personally, I believe that offering demos is somewhat a double edged sword. Sure, you let people try your app out--but that may be the problem. Even if your app is good, people have a good chance of saying "OK, I tried that--it was cool, but I don't think I'll use that so much that I should pay $10+ for it." If you offer the user a choice between free and $$ the user will 9/10 download the free trial. I'd bet a good amount of people would just have bought the app anyway. Now, you're expecting the user to try the demo and then come back and buy the full version...that's a lot of work to get a mobile app.

I recently read an interview on Cliff B, a video game developer, who kind of confirmed these thoughts:

"A beta is like hooking up with a girl just to say, “yeah, I f*cked her.” I know that sounds crude, but it’s the honest-to-God truth. Once you play a beta, you can check it off your list — you can say, “yeah, I played it.” Then you might not feel motivated to get that initial cherry popping from the proper, final game."

Just my $0.02

November 25 2008 at 11:46 AM Report abuse rate up rate down Reply
StationStops for iPhone

As an iPhone developer, I cringed at that article which got widely circulated about the Tris developer who made $250,000 his first two months. It makes iPhone development sound like alchemy, and any developer who sells for more than X is some sort of greedy millionaire.

Tris is a great game and I am happy for his success, but users should realize that a lot of non-game apps have relatively tiny markets and most will not recoup the cost of development, much less profit, and that is one reason why prices can be higher.

I charge $5.99 for my app, and its selling very well, although I doubt I can get the sell-through to the relatively small regional target market that I will ever recoup the cost of the Mac and the 200+ hours I put into the app.

I agree that demos would be great. A lot of people are doing this ad-hoc with 'lite' versions but to standardize it would be fantastic.

Also, it would be great if there were a way for people to browse and buy apps in their web browser and have them 'sent' to the phone. Web marketing apps is very difficult as an iTunes link is awkward (and useless if the user is not on their iTunes library machine).

November 25 2008 at 9:57 AM Report abuse rate up rate down Reply
M

I agree the original post - if an app is truly worth the $9.99, then I would be prepared to buy it. Things is just one example of an app that was truly worth the price I paid for it.

However, if app developers somehow conspire to raise prices artificially, all they'll end up doing is shooting themselves in the foot. If I were to start finding app store apps overpriced, potential customers will realise it and purchase fewer apps and use more free ones instead.

November 25 2008 at 5:15 AM Report abuse rate up rate down Reply
Jon

It'd be so easy for Apple to implement demos. They already wrap the apps in DRM to prevent you passing them on to someone else, so it'd be no trouble at all to implement the same expiration system they use for movie rentals.

November 25 2008 at 4:41 AM Report abuse rate up rate down Reply
Nathan Hand

I'm an iPhone developer with apps on the iTunes Store and when thing that really annoys me are all the reviews that give 1 or 2 stars and say "should be free". Everybody else gives the same apps 4 or 5 stars, but the cheapskates are dragging down my app ratings. These are 99c apps; not exactly breaking anybody's bank.

It's gotten so bad I'm soured by the whole experience and it's a struggle to motivate myself to write more apps.

November 25 2008 at 4:11 AM Report abuse rate up rate down Reply
3 replies to Nathan Hand's comment
freddie

If lite versions were offered to try, then I'd definitely be more likely to purchase an app for $9.99, if it really was useful. Currently, I won't go above $3.99 for an app, because many times you just don't know what the quality of the app will be.

November 25 2008 at 2:39 AM Report abuse rate up rate down Reply
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