Monday, December 7, 2009

How to Choose the Right Price for Your iPhone App

When you choose a price for your iPhone app, you have to make some very important decisions. Your price is one of the first things potential buyers will look at in the App Store and can make the difference between an average performer and a best-selling app.

How do you decide what your app price should be? We’ll help make your decision a little easier by giving you the top questions to ask yourself:

A. Should my app be free? There are really only two prices that matter on the App Store: free and not free. If you have a free app, people don’t need to think about their purchase because there is no risk and no regrets. The problem, of course, is that you are not making any money from free apps. You will need another way to profit from your apps.

B. What do similar apps sell for? Take a look at your competition. If you sell an app that is similar to several others, you can stand out by keeping your price below theirs.

C. How much is my app worth to my customers? Ask yourself what benefit the app is bringing to the people who use it. If it saves time, your users will value that. Maybe it helps people do their jobs better or it just entertains them. The stronger the benefit, the more you can charge.

D. How much better is my app than free apps? It will be tough to set a high price if your paid app is too similar to free apps already available. For example, if you created a chess game app and want to sell it for $1.99, make sure to say exactly how it is better than the free chess apps (better graphics, more options, play against your friends, etc.).

E. Will I want to offer discounts later? If you think you might hold a sale later (which can be a great way to boost your sales), do not set your app price too low. When in doubt, set your price a little higher and you can discount it later. (It’s a lot harder to raise your prices without a negative reaction from your customers.)

Choosing a price for your iPhone app is not easy, but it is also not set in stone. Keep an eye on your sales and competition to make sure you always have the perfect price.


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