|Article Description: application revenue has nothing to do with pricing?
Editor's note: The author of this article, Oliver Reichenstein, is an application developer who recently tested the price of a new application he developed, and described the results of the test, which is what it publishes on Google +.
We have recently tested the impact of pricing on revenue, and tests have shown that our final income is the same regardless of the price of the application.
I enclose two diagrams to illustrate this conclusion, and recently I lowered the price of the IA-Write ipad application, from $5 to $1. At first its sales soared, but the final revenue returned to previous water supplies. The price was lowered to one of the original 5, and sales grew 5 times times, but the overall income was unchanged.
Then we lowered the price of the IA Writer Writer MAC version from $10 to $5, and as with the ipad version, the sales rose, and then the income curve turned out the same as before. Then we reduced the price of an application from 17.5 dollars to 10 dollars, and the result was the same.
when I expected the price to reach a certain point, it would have a positive or negative impact on the revenue of the application, but unexpectedly this did not happen, no matter what price the application is set, the final income remains the same .
I'm very happy to be able to make more people use IA Writer by cutting prices, it doesn't have a big impact on the overall payoff, and you can actually earn more from the first days of applying a price cut, but support costs, the probability of a Bug, and negative comments are likely to rise. Unless you really want to develop a large number of users, it is not a good idea to increase revenue by lowering prices.
At the moment I just didn't try to make apps free, but unless there was an ad in the app, we wouldn't have any revenue, and that's not what I wanted.
The results are indeed as the authors say, but the developer does not provide a specific sample of the test, and we cannot tell if the data is large enough to justify this view. And the developer's test is limited to the application he developed, so the accuracy of this conclusion is questionable.
Via:oliver Reichenstein ' s Google +