Quote:
Originally Posted by Sly
You're incorrect. Cut your price in half and you almost have to triple your sales/subscriber base just to make up the difference in revenue after configuring processing and other support related expenses, that is not even counting the additional cost of acquiring more members.
The $10 model has been tried and tried and tried again. It disappears quickly for a reason.
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We had a client who wanted to price their iPad app at $20. Tried to convince them many times that it just wouldn't work, that they wouldn't make any sales. They wanted it at $20 though. They spent close to a year on the app store with little to no sales. Finally, after this time I was able to convince them to try a lower price. They wanted to do $15, or $10 - but I insisted they bring it down to $3-5. They did, and changed the price to $5. They made more sales the following month than they had in the entirety of the app being on the app store.
Whats funny is there is a gold rush with mobile and web right now. Every day mobile technology becomes cheaper, and mobile phones get into the hands of more and more people around the globe. The same goes for internet connections, and computers. It is absolutely incredible the sheer amount of people and data that is being added to the internet each day. Companies are falling head over heels trying to snatch up the emerging markets. Go to any big conference (in mainstream) and it's always a main focus. Yet again, you go to adult and it's like everyone is doing the exact opposite of what is understood and done in other industries. It is truly incredible to see the backwards ass methodologies used and spoken about in this industry.