With App Store shoppers seemingly hesitant to risk $5+ on a new app, I decided to do a pricing experiment. For a limited time, App Store shoppers were able to purchase any App Cubby app for $0.99. I asked that if they felt the app was worth more than the $0.99 they paid, they make a donation to fund future development.

http://appcubby.com/blog/files/the_experiment.html

david
App Cubby

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Like you say, niche products will have a hard time to get in the Top 100.

For example, while Classics and Tipulator went in the Top 25 after the new iPhone TV ads went on the air, Rocket Taxi never reached the Top 100, even though our sales were up 1000%. Unlike those 2 apps, Rocket Taxi targets a niche market that will never go mainstream.

Reaching the Top 100 shouldn't be your primary goal.

appcubby: can you give a litte details about how your company is doing financially? As you stated, becoming the next appstore millionare is not your goal. What IS your goal is to build a financially sustainable company for quality iPhone apps. Can you tell us how viable is that judging from your company's performance so far (things like costs, net profit, an estimated salary for the year, how it compares to a full time etc). Thanks.

Good decision. I hesitated to buy your apps. When you lowered the price to 1$ I bought all 3.
So far it is only Gas Cubby which suits me.

When you release ver 2.0 I will donate.
Until then I hope for some of the feature request for Gas Cubby will make it.
Particular stuff regarding localization. I.e octane stuff and so.

Though Health Cubby and Trip Cubby most probably is apps not for me. This would have been easily determined using your lite strategy. So I applaud you for releasing free apps with limitations. If you find the app useful you will upgrade to the full app.

I say raise your price to $9.99. It's simply not sustainable below that price for real apps. You'll have to do real marketing however. After all, the AppStore is just a catalog - it's not a marketing tool.

Bonjour,

Pricing is a very difficult task - and a dangerous one.

I've read a very interesting book "The Art Of Pricing: How To Find The Hidden Profits To Grow Your Business" by Rafi Mohammed.

Rafi Mohammed is a consultant on price strategy and gives some basics hints in his site. Those, and many more, are detailed in his seminal book.



The book is worth reading. Enjoy it and made profits to continue developing high-value apps for iPhone and iPod touch users

Best regards,

My philosophy is to price an app at what it's worth and stick to it. That's not to say you couldn't make minor changes like from $10 to $9 or from $5 to $4. But radical pricing changes are hard to justify... unless your goal is publicity, which I can understand, but that's not easily repeatable.

When you go from $5 down to $1 then up to $10 (and potential changes beyond that), you risk alienating people who paid more. I imagine it will show up in reviews. People might not buy the app, waiting for your next price drop gimmick... because you've set a precedent.

Just my thought, but full disclosure, I have an app myself which was priced at $0.99, all along, (and has done quite well) so I try to practice what I preach

which is your app MacTodd?

Interesting experience. We had "Where To?" on sale yesterday and from the preliminary numbers I can acknowledge your findings.

We're having a similar dilemma that it's hard to get exposure in the App Store given that the Top 100 is dominated by games and fart/wobble apps. I was curious and counted: 73 of 100 apps are in the games or entertainment category (in the US). It is interesting that this percentage varies for different countries: In Germany only 57% are in these two categories and 72% in the UK. Do Germans have less fun?

Ortwin Gentz
FutureTap

I am so happy you are going to continue to make quality apps like the first three. I would "GLADLY" pay $10 for them. There is no question that Trip Cubby and Gas Cubby are some of my most useful apps on my iphone. (I have pages of apps on it. It is full of apps and so now when I find a quality app I must delete an inferior app off my iPhone.)

I have been eagerly waiting for "Cash Cubby" to come out. Please, Please, Please! put the same fine design skills to work on it. As soon as it is available I will buy it! You have proven to have the most well thought out apps available. I am currently using iXpenseit and am hoping your "Cash Cubby" can replace it.

Thank you for a great job. Thank you for not giving up on producing great apps. Keep producing the best apps and you will make a decent living. Your fans out here will continue to buy what you produce, if you continue to "hit the ball out of the park."

Tom