Developers see the bugs and problems of their products, and thus they are prone to not charge a high price instinctively. The price of an app signals its value or worth to the prospective customer looking at the price tag. Jordan Morgen shares this from the Spend Stack days:
I found an interesting connection between two articles about paid up front apps, and how this paywall can work to your advantage in two ways by separating the ap user’s population into two groups, prospects and paying custoemrs: I never thought about the effect of paywalls on support email volume until Jordan Morgan launched his app Spend Stack the other day and now published an interesting argument pro paid up front pricing. Paid up front will limit your user base a lot compared to free-to-download/freemium, that’s true, but you’ll have a far lower volume of support emails, and you will only get emails from paying customers. Jordan receives 10–15 emails/day at 500 downloads/day right after launch. If you think freemium will increase downloads tenfold to 5000/day, he would also have to deal with hundreds of emails!
The following is a guest post by my pal Sascha Fast, with whom I also work on the Zettelkasten Method project. Because of recent events in the Apple app ecosystem, he figured it’s time for uncovering the truth behind popular arguments for subscription-based pricing. So, please warmly welcome Sascha! 👏
I found this on Seth Godin’s Blog: A dollar more (vs. a dollar less): But what happens if Lyft (or your project) decides to race to the top instead? What if they say, “we’re always a dollar more than Uber”?
It started innocently enough, with a customer being confused about paying for “the same app” twice. Now I wonder if the traditional pricing strategy for software is obsolete. I found this on Twitter, and then I got hooked: @fehnman @ulyssesapp like I said, it’s how you choose to sell it. +£50 for an app is pushing it.
—@eatmorefish (9:35 AM - 31 Jul 2016)
Joe Allen posted on Reddit how selling Soundboard Studio for $29.99 helps him sustain a business. You’ll find more details on his indie business blog where the latest posts circle around similar topics.