On the AppStore, Apple offer us developers a choice of 87 different pricing tiers from $0.99 to $999.99.
I find a lot of app developers perhaps don’t put as much thought into the price of their apps as they should. Getting your app’s price right could make a huge difference to your revenue, and I’ve got the numbers to prove it.
I had a well established app on the store, with fairly low, but consistent sales of between 2 and 5 copies per day. I was selling the app for $2.99 (Tier 3), so a good month would see the app earn around $250 – $300 of developer proceeds for me. This was great, amongst my other apps it was one of my biggest earners.
Like most of you, I was selling pricing my apps at $0.99, $1.99 and maybe my best apps for $2.99.
With this particular app being one of my most successful, I built up the motivation to work on a big update. This update was a whole new app built from scratch… New design, new features, new price.
I had discovered that a couple of my competitors were pricing their apps at well over $10, they did have better apps, but I knew that my app wasn’t one third as valuable, particularly once my update was released.
I decided to change my price from $2.99 to $6.99 in time for the update, I was nervous that my sales would disappear, but my competitors gave me some confidence and I was still the more affordable option.
To my surprise… Sales actually increased.
Let’s not get carried away… The price change alone didn’t increase my sales, but it certainly didn’t scare away customers like I thought it would.
So as a result of my update and a few minor marketing efforts, my sales numbers effectively doubled but my revenue per copy had tripled. Overnight I was earning six times more revenue per day.
Since then I’ve put a lot more effort into marketing the app and improving my conversion rates (more about that in a future post), so I now have consistent sales of around 10 copies per day, and at $6.99 (Tier7) it’s earning over $1,400 per month.
I would encourage anyone to experiment with your app’s price, the chances are doubling your price won’t cut your sales by half.