| I am currently close to releasing an app on the iPad and I have done lots of internal debating as to which price to choose. Here is my situation: -I am entering a smaller addressable market, so I know I won't be able to grow forever and therefore I am focusing on building brand loyalty and getting repeat customers. -I am planning on releasing new apps at a steady cadence, probably 1/month (it doesnt make sense in my situation to release new content within the app itself). So with these two things combined, it seems logical to go at a low price-point. A low price point should gather initial customers and then be small enough to keep them coming back month after month. So I am currently leaning towards $1 per app. But I have heard enough about the app market pricing and from people on this board to give me second thoughts, specifically: -early users are insensitive to price-point -ipad app purchasing is very elastic (ie you get the same revs depending on whether you sell it at $1 vs $4 etc) I've thought a lot about releasing it at a higher price point, $2, maybe even $3. The biggest reason I am leaning towards $1 is the fact that I intend to release many apps and I see each as a microapp and therefore a micropayment. So even though I think one app may be worth more than $1, I think the value of each app over time is logarithmic. Therefore its better to sell 5 at $1 than 2 at $2, etc. The apps themselves are interactive ebooks focused on military history. (a vague description, but unfortunately I am a few days away from having my website up) |