Please consider lower price point
Posted: Sat Nov 26, 2011 6:15 pm
Hi,
I downloaded the free version and it is the best dialer I have used. It is way better than stock and other dialer apps. Then I found out that the paid version is $9.88. I do understand the value, time, and effort of a programmer's work but the price of $9.88 is counterproductive to maximizing your revenue. Below, I shared 4 articles and then explain how reducing the price will increase your revenue.
According to Android Market Insights (it is in the download), August 2011 average selling price in the Android store averaged $3.13. Your price is over 3 times more than average.
According to research done by Nielson, the report shows for the six categories, 76-93% of the app user would be willing to purchase the app. This app most likely falls in the productivity category.
Here is another article that shows the average prices of the top 100 apps for both the iPhone and Android split into different categories. The $9.88 is significantly above average.
Lastly, here is an article that talks about four different variables to look at when pricing an app.
The following are calculations where I make certain assumptions since only you know the actual numbers. According to Android Marketplace, the free version received 100,000+ downloads. Your paid version received 5,000+ downloads. This means 5% of your users opted to pay at $9.88 which generated $49,400 in revenue.
According to the Nielson article, 76%-93% of app users are willing to purchase the app. That is a significant difference in who are willing to pay for your app which is at 5%. Since those percentages are based on averages (people taking surveys), let's make the following estimate using those averages. If you price your app to the average app price of $3.13 and let's say 73% (the lower end of the 6 categories) of your users are willing to pay, that means you will have 73,000 paid users generating you $228,490 in revenue. That is a 4.6 times more than what you have currently generated.
So, currently at $9.88, it is priced too high and it is counterproductive in maximizing your revenue. You will make more money with a more competitive (and lower) price point.
Thanks and I hope you will consider reducing your price so that I can also become a paid user and use all the features of your dialer.
I downloaded the free version and it is the best dialer I have used. It is way better than stock and other dialer apps. Then I found out that the paid version is $9.88. I do understand the value, time, and effort of a programmer's work but the price of $9.88 is counterproductive to maximizing your revenue. Below, I shared 4 articles and then explain how reducing the price will increase your revenue.
According to Android Market Insights (it is in the download), August 2011 average selling price in the Android store averaged $3.13. Your price is over 3 times more than average.
According to research done by Nielson, the report shows for the six categories, 76-93% of the app user would be willing to purchase the app. This app most likely falls in the productivity category.
Here is another article that shows the average prices of the top 100 apps for both the iPhone and Android split into different categories. The $9.88 is significantly above average.
Lastly, here is an article that talks about four different variables to look at when pricing an app.
The following are calculations where I make certain assumptions since only you know the actual numbers. According to Android Marketplace, the free version received 100,000+ downloads. Your paid version received 5,000+ downloads. This means 5% of your users opted to pay at $9.88 which generated $49,400 in revenue.
According to the Nielson article, 76%-93% of app users are willing to purchase the app. That is a significant difference in who are willing to pay for your app which is at 5%. Since those percentages are based on averages (people taking surveys), let's make the following estimate using those averages. If you price your app to the average app price of $3.13 and let's say 73% (the lower end of the 6 categories) of your users are willing to pay, that means you will have 73,000 paid users generating you $228,490 in revenue. That is a 4.6 times more than what you have currently generated.
So, currently at $9.88, it is priced too high and it is counterproductive in maximizing your revenue. You will make more money with a more competitive (and lower) price point.
Thanks and I hope you will consider reducing your price so that I can also become a paid user and use all the features of your dialer.