Why You Should Be Selling Your App for $9.99, $19.99 or $29.99

So I’ve just launched my new app Soundboard Studio, and it’s $30. It’s the first time I’ve launched an app over $10.

People are always complaining about apps, they’re like “Oh, it’s a $2 app, why isn’t it $1!?”. Well I don’t have to deal with any of those people.

Sure there are some people who have actively contacted me, and told me “This is crazy expensive”. I just think to myself “ok”, and then I quickly move on. Who cares?

When you sell an app for $9.99, $19.99, $29.99 or even more, you filter out everyone else and start reaching the serious people.

You have to ask yourself: Who is this for?

Who is this for? Soundboard Studio is for professionals, they’re serious people. There are a lot of $0.99 soundboard apps, they make fart noises so you can trick your friends. Professionals don’t want that, they’re not going to buy it for their professional studios.

I’m targeting professionals and I’m saying: “This is the perfect app for your work, I’ve thought of everything you could possibly need. This is going to save you time, save you money, look more professional, be more mobile, everything.”

Now let’s take a step back for a moment and consider who might buy Soundboard Studio, forgetting the price for now…

These people are professionals, that means they do this thing for a living. They either run a business doing this thing, or they work for a company doing this thing, it’s their profession. These people, or the companies they work for, spend upwards of 4 figures on studio equipment and software. They want to be the best at what they do, they invest in the tools they need to do that. After all it’s the tools they invest in that make them their living.

What if I sold Soundboard Studio for $1.99?

Let’s imagine I sold Soundboard Studio on the App Store at $1.99. Most apps are $1.99 right? That seems to be what everyone else is doing, so I should do that. Right?

Let’s also imagine that I had an audience of 10,000 people, and I sell 1,000 copies on launch day at $1.99. Hey I made $1,900.00!

1,000 people were willing to spend money on my app, they saw the value and invested in a new tool for their work. I got 1,000 new customers. I win! 🙂

What if I increase the price by 1407% to $29.99?

Now let’s imagine that I could go back in time and do the launch again, but this time I increase the price by 15x.

Remember who my target audience are… They’re professionals who have invested in the equipment, and actively earn a living in this field.

So I still have an audience of 10,000 people, and I know from before that 1,000 were willing to invest in my product at $1.99, they saw the value and invested in a new tool.

Am I going to sell 15x fewer copies? That would be just 66 copies. But it’s 15x more expensive! Well if that were true, that would mean that of those 1,000 people who were willing to invest at $1.99, 934 of them lost confidence because it’s now $30. 934 people thought that is was only worth an investment of $2. Am I really going to lose 93% of my sales?

When you think of it like that, it’s just wrong.

When something is your profession, what’s the difference between $3 and $30? A taxi ride can cost more than $30. A cable to plug in your microphone can cost more than $30. Is Soundboard Studio worth more than one taxi ride or a microphone cable? Of course it is.

But let’s take this one step further, at what point would I lose 93% of my sales? At $100? At $300?

Personally, I think my price would have to be close to $500 before I start losing 93% of my customers. I actually wish I could go back in time and launch Soundboard Studio at $40 or $50. I would have made more money without doubt.

I actually sold 360 copies of Soundboard Studio on launch day, but I didn’t have an audience of 10,000. My key audience was just 562 people, of which 133 people purchased. You can read more about the launch here →

I got 133 out of 562 people to buy a $30 app.

“But I’ll sell more copies at $1.99, right?”

Let’s apply the $1.99 price tag to my real launch numbers, but this time by some miracle I got all 562 people in my audience to buy. Every single person. 100% conversion rate. (If you don’t know already, 100% conversion rate is insanity, it doesn’t happen, you’ll never sell to every single person in your audience, it’s just not possible.)

But let’s imagine I did…

562 sales at $1.99 is $1,188.38.

How much clearer could it be? Don’t price your app at $1.99, $2.99, $3.99. You’re leaving thousands of dollars on the table. Selling your app for $30 is easy. Getting a 100% conversion rate is not only impossible, you’ll still make a lot less money if you’re selling your app for $1.99.

What would you rather do?

  • Option 1: Easily sell your $30 app to some people.
  • Option 2: Attempt the impossible, get a 100% conversion rate, and still make less money.

I mentioned that those 562 people were my key audience. That’s because those are the people who signed up because they were interested in hearing about the launch.

I actually have a much bigger audience from my other apps Teleprompter Premium and Video Teleprompter. That audience is about 124,000 people.

Let’s do those numbers again…

Let’s again imagine I sold my new app, and by some kind of miracle, 100% of my audience buy it. All 124,000 people. At $1.99, the price of a normal app. The price everyone expects.

124,000 sales at $1.99 is a massive $247,000. Nearly one quarter of a million dollars. That’s great, I win! I had the perfect launch on my app.

Well as we know, that’s not going to happen.

Remember how I got 133 out of 562 people to buy Soundboard Studio? Well that works out at a 24% conversion rate. That’s a pretty good conversion rate. A lot of people would really struggle to get a 24% conversion rate, especially for what is a relatively high-priced item in it’s market, in this case a $30 app.

So now, let’s pretend I got the same 24% conversion rate from my audience of 124,000 people. Selling for the same $30 price tag.

24% of 124,000 is 29,760 people, and 29,670 sales of my app at $29.99 is $893,000. Or in other words, almost $900,000.

Let me give you those options again:

  • Option 1: Easily sell your $30 app to some people.
  • Option 2: Attempt the impossible, get a 100% conversion rate, and still make less money.