What you charge for your iPhone, iPad, or Android app – even if the price is zero – can make all the difference to how many people buy it and how much money you earn. More than just an afterthought, pricing should be a top consideration when you are getting ready to launch your app.
So, how do you choose the price? Here are 5 key questions to ask yourself to pick the perfect price:
1. Should your app be free? There is a huge difference between free apps and paid apps. Put another way, the difference between $1.99 and $0.99 is not that big. But the difference between $0.99 and free is huge – it really is like two different worlds. Downloading a free app does not take any thought on the part of the customer and they can act in an instant. Buying a app that is not free makes the customer stop and think “do I really need it?”.
2. What do apps like yours sell for? Do some quick market research by looking in the App Store or on Google Play (formerly the Android Market). First, make sure you are not charging significantly more than apps like yours unless you have a good reason. For example, if you offer special features that they do not. Instead, make sure you are in a similar range as similar apps. Or, charge less and get an edge on your competition.
3. How much is your app worth to customers? You might be tempted to say “I put in so many hours to build my app that I need to charge a high price.” But unfortunately it just does not work that way. The price of your app is based on what people are willing to pay for it. Put yourself in your customer’s shoes and see if the benefits your app provides are worth the price you are charging.
4. How much better is my app than free apps? With so many apps in the App Store, there might be an app that does what yours does – only theirs is free. If that is the case, you have to ask yourself a tough question: how much better is your paid app than their free app? What does yours do that theirs does not? In other words, why would someone pay for your app, and how much would they pay?
5. Will you want to offer discounts later? If you think you might want to have a sale on your app later, do not start with a rock-bottom price. It is much harder to raise your prices than it is to lower them. If you are torn between two different prices, try the higher one – that gives you a chance to have a limited-time discount later to increase sales.
The price you choose is an important part of successfully selling your mobile app. While your price is not set in stone, asking yourself these questions before you launch your app can help it attract more customers and sales from the start.
What questions did you consider when coming up with a price for your app? Share your thoughts by leaving a comment below.