I’ve already discussed the average profits web developers generate with mobile apps in my mobile app market review last year. Today I’d like to address the subject of mobile app pricing. How do you define the final price level that will bring you maximum profits without discouraging users?
The apps market is overloaded with free mobile apps, and many of them have high-quality sound and graphics along with nice functionality. However, while the huge number of downloads looks tempting, web developers will be hard-pressed to make both ends meet by offering a free product. The cost to develop an app won’t be covered even with a cost of $1-2 dollars per install, so what’s the compromise?
Image source: Kumulos Blog, Which Apps Make Money?
In fact, there is one. It’s imperative that you work on a mobile app pricing strategy that suits your individual case. First, let’s get rid of some myths:
- You can see everyone keeping their app price to a minimum and think you need to do the same;
- You make assumptions such as “everyone is expecting a $0,99 mobile app price, so I’ll set it for my product;”
- You think that a $0,99 price tag will help your mobile app get into the Top-100 based on number of downloads;
- You have already imagined yourself swimming in an ocean of dollars after thousands of customers were attracted by your low mobile app price—even if it wasn’t something they needed.