One of the biggest challenges for iPhone app developers is determining the price of their app once it is complete. There is definitely a trend for a lot of developers to price their app for $0.99 or free, but this may not always be the best price for your app. In order to maximize profits it is very important to consider several factors. When you are ready to price your app, please consider some of these questions:
How many competitors have created a similar app? Investigate the App Store and review how many apps are similar to yours. Is your app superior or another run of the mill app?
How have your competitors priced their app? If your competitors price there app for $0.99 or free and you don’t offer an app that is significantly better than theirs, than you can’t charge more than them.
What are the differences between your app and theirs? It is important to honestly evaluate your app compared to your competition. Yours may have a better UI, offer more features, or be more user-friendly. These key items and more can help to determine the value of your app.
What were your costs to develop the app? Determine the amount of money and/or time spent to develop the app. Then take the time to find out how many sales you need to break even. This may take some serious evaluating and analysis, but will further help you to understand how to price your app.
Are there any free apps similar to your app and what are their differences? If there are a lot of free apps similar to yours, it could be challenging to convince customers to purchase your app over a free one. Make sure that you have effectively communicated the value of your app.
How large is your target market? Do your research! Is there a large enough market for your app? Make sure that your market is large enough to get enough sales to at least break-even. Don’t waste your time if it is not.
What kind of app have you developed? If your app is a business app or a guide to eating healthy, then you can have a better understanding of your market. You may not know how many apps your competitors are selling, but you can get an idea by the number of reviews an app has on the App Store. Remember that you must own the app to review it. With this information you can find some estimates of how large the market is for your type of app.
Do you plan on using advertisement in your app? If you plan on using advertising in your app, then then can help to reduce the cost of your app or you may decide that will be your source of revenue. Many apps are free, but offer ad free versions for a price.
While these are just a few of the questions you can use to get started, they are not all encompassing. Take the time to do the appropriate research and if you don’t get it right the first time, remember that you can make minor adjustments. Start selling your app and then measure your results. If sales are not meeting your expectations or they begin to drop, reevaluate things and make minor adjustments. Remember that people will pay for quality, but not for poor or lower quality apps.