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Re: [android-discuss] Time to raise app prices? Jeffrey Kesselman Thu Feb 16 07:00:42 2012

The issue here is one that sales psychologists refer to as "anchoring."

Its why informercials start with "You could pay..."

The fact of the matter is that most of us, most of the time, have no idea
what something "should cost."  So we fix our idea of value based on what
we've already see it or something like it sold for.

The cell phone game business fundamentally screwed itself by starting with
a low-ball. The fact of the matter is that $10.00 is still cheap for a game
and we probably could have gotten it had we started there.  Having started
at $1.00, however, we have anchored ourselves there.

There is some elasticity in any market.  and you *might* get away with a
$1.00 increase, but you might not.  Mostly it depends on who your
competition is.  Microsoft gets away with upping prices because they have a
monopoly.  If they decide Windows 8 is worth $200 a copy, whata re your
choices? Either pay it or try ot survive with the previous version (which
they go out of their way to make inadequate by changing APis so newer
software will be incompatible.)

If you have a unique product you are more likely to get away with a price
hike,  If there are cheaper alternatives, however, you are likely to drive
your business to them.

On Thu, Feb 16, 2012 at 9:05 AM, c beck <[EMAIL PROTECTED]> wrote:

>
> On Feb 16, 2012 1:38 AM, "Felipemnoa" <[EMAIL PROTECTED]> wrote:
> >
> > The price is so low that it should really make no diference. At 1.99 the
> only thing that will stop a user from getting the app is that he may just
> not want it.
>
> Or that they know most apps are 0.99 cents and goes and finds one of your
> competitors with that price.
> >
> > I really cannot see a user wanting an app but not buying it because it
> costs an extra dollar.
>
> Ha!   I really wish that were true. Although some say now that consumers
> are smart enough to not discriminate between 0.99 & 1.00, I don't even
> think that is true.
>
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