I'm the guy who runs Two Dollar Tuesday (I'm also a Mac App Developer):
A few reasons why you wouldn't necessarily do it every day:
At $1.99, he would have to sell more than twice as many copies as he is selling now to make the same revenue. Plus, he'd have more support requests to deal with. $1.99 may not be the optimal price point.
The reason to participate in any "bundle" like Two Dollar Tuesday:
- Mailing list: TDT has a mailing list of thousands of Mac users who've asked to receive the deals each Tuesday. We have a phenomenal open rate (last week was over 80%). MacUpdate, MacZot, etc., all have the same kind of thing going. Thousands of Mac users eager for discounted apps.
- Cross promotion. Someone looking for a discount on a different app might discover your app through TDT.
- The "limited-time effect" -- people are more likely to pay $1.99 for something if they know they only get one day to get it at that price. Were the price always at $1.99, you lose the sale/impulse buy effect.
Well, we could, but $4.99 is the price point we're comfortable with. We're trying this promotion as an experiment — TwoDollarTuesday helps get the word out, so hopefully, we'll end up selling enough extra copies to compensate for the temporary price reduction.
To add to @tinylittlefish's reply here, it might also have to do with perceived value. To the user, it feels like she will be getting an app within the quality range usually associated with $5 apps, but is able to get it for only 2 bucks. Something like that.
A few reasons why you wouldn't necessarily do it every day:
At $1.99, he would have to sell more than twice as many copies as he is selling now to make the same revenue. Plus, he'd have more support requests to deal with. $1.99 may not be the optimal price point.
The reason to participate in any "bundle" like Two Dollar Tuesday:
- Mailing list: TDT has a mailing list of thousands of Mac users who've asked to receive the deals each Tuesday. We have a phenomenal open rate (last week was over 80%). MacUpdate, MacZot, etc., all have the same kind of thing going. Thousands of Mac users eager for discounted apps.
- Cross promotion. Someone looking for a discount on a different app might discover your app through TDT.
- The "limited-time effect" -- people are more likely to pay $1.99 for something if they know they only get one day to get it at that price. Were the price always at $1.99, you lose the sale/impulse buy effect.