Pricing an iPhone app can be a very strategic process. This article reviews the price points and revenue models commonly used for iPhone apps.
$0.99 – $1.99 “Impulse” pricing model
About half of the iPhone apps in the Top 100 cost $0.99 and there is a direct reason for this. It’s because this is the price at which users are most likely to make impulse purchases for an app that looks appealing. We recommend using this model when your application is simply “nice to have”. These are mildly entertaining apps, they solve a very basic problem, and they were easy to create. But also keep in mind that low-priced iPhone apps need to be of high quality to win consumer interest.
$4.99 – $6.99 “Premium” pricing model
Most of the apps in this price range are games that give the user an experience that cannot be obtained with lower priced apps. Obviously, the app is much more complex and of higher quality than lower-priced iPhone apps. People often pay top dollar for brilliant design or sharp, intuitive graphics. Basically, this means that these apps usually focus heavily on the graphics of the user interface, to give it a more professional feel.
Non-game apps that succeed at a higher price tier aren’t usually extremely unique in use or very design intensive, they just solve a problem better than any other app. This price point is basically the premium price point. It is intended for applications that are of higher value than impulse applications.
Additionally, we recommend any app that costs more than $4.99 to have a trial version to go along with it. This will allow users to test the app and help them make a decision about whether the app is worth the money. Even if people don’t always buy the app, it will definitely create some kind of buzz if the iPhone app is of quality.
$7.99 to $9.99 “Leader” pricing model
To place an app in this price range, your app basically has to be far superior to all other apps in its category. It has to do something, and do something better than any other app by a long shot. We recommend this price range for large software companies or established iPhone development companies.
“Specialized” pricing model over $10
This pricing model is only recommended for individuals or iPhone development companies that have experience in an industry and truly understand how much their target market is willing to pay for an iPhone app. This model can also be used for software companies as an extension of their existing product. For example, if your business already has a strong customer base, you might consider building an app at this price and marketing it to your existing customer base. These people already have a clear understanding of the value your app will bring them and are more adept at buying a higher-priced iPhone app.
In general, there are a lot of things that go into the price of your iPhone app. We recommend that you do your research and understand the pros and cons when pricing your iPhone app. Price it too low and you could be missing out on significant revenue. Price it too high and the same thing happens. The trick is getting it right, and with the help of this article, we hope you have a clearer understanding of what goes into pricing an iPhone app correctly.