Pricing your app

by Volker Weber

ZZ50AA6C83

The Cult of Mac has a giveaway. You can register your email and they will give away one bundle of Omni Group applications. A $580 value as they say.

The question is, would you ever have spent $580 on these apps? Mind you, they are pretty good. But go to the Apple App Store and see how much the best selling apps cost. OS X Lion, iPhoto, Pages, Numbers, Keynote. They are all cheaper than what Omni Group is asking for their apps.

Software does not have a unit cost. You develop the software and sell it through a channel that takes a fixed cost. Sell 1000 copies for $1 or one copy for $1000, your revenue is the same.

There are a few expensive programs on the App Store that are doing relatively well. Final Cut Pro, Aperture come to mind. But I suspect that Omni Group would have much better revenue, if they sold OmniGraffle for $20 than at its current price of $200.

Comments

Sie haben einfach nur versucht in deinem Gehirn die Kauf-mich-sofort-du-machst-ein-Schnäppchen-Region anzusprechen. Ging wohl daneben.

Joachim Haydecker, 2012-04-09

I think you miss one important point. Selling 1000 copies means giving support for 1000 people. Which results in the same revenue, but definitely not the same profit.

Going for a higher price normally targets most of the time the customers that are serious about your product. People that know what your product is worth to them. Selling it for a lower price means you have to handle customers that bought your product just because of the low price. Even if it doesn't exactly fit their needs. It is definitely no fun to handle those customers.

Niels Hapke, 2012-04-09

I aggree with Niels to a point but I belive that Mr Weber is looking at wider picture . everyone one that buys will show / tell 10 people. So its better to have 10.000 people looking at you app then 10 .

Palmi lord, 2012-04-09

I believe the business has changed and Omni Group hasn't adjusted yet.

Volker Weber, 2012-04-09

>>Residents of Taiwan, South Korea, Portugal, Italy, Austria, China, Russia, Hong Kong, Greece, France, Japan, Spain, and Czech Republic are not eligible to enter or win.

John Keys, 2012-04-10

Hm - the rest of my comment got truncated in the posting process. I wondered what those countries had done to get excluded.

John Keys, 2012-04-10

Nice theory... the only problem is: OmniGraffle and OmniFocus regularly appear in the list of the 12 apps with most revenue in the AppStore. So I don't think Omni Group should 'adjust' to anything..

Martin Hanne, 2012-04-23

Recent comments

Amy Blumenfield on Microsoft is winning the techlash :: Axios at 23:36
Armin Grewe on Facebook's role in Brexit — and the threat to democracy at 23:01
Thomas Lang on Facebook's role in Brexit — and the threat to democracy at 23:01
Volker Weber on Microsoft is winning the techlash :: Axios at 22:12
Felix Binsack on Microsoft is winning the techlash :: Axios at 21:52
Hubert Stettner on Galaxy Fold is fragile at 21:28
Hubert Stettner on Facebook's role in Brexit — and the threat to democracy at 18:51
Markus Dierker on Facebook's role in Brexit — and the threat to democracy at 17:52
Hanno Zulla on Nokia verzettelt sich at 17:13
Volker Weber on Constructed Needs at 10:20
Volker Weber on Gary Clark Jr. :: Tiny Desk Concert at 10:13
Thomas Cloer on Gary Clark Jr. :: Tiny Desk Concert at 10:11
Thomas Cloer on Constructed Needs at 10:05
Volker Weber on Arlo Abonnements at 08:56
Bodo Menke on Constructed Needs at 08:41
Markus Mews on Arlo Abonnements at 08:37
Volker Weber on Gary Clark Jr. :: Tiny Desk Concert at 23:49
Michael Jäckel on Gary Clark Jr. :: Tiny Desk Concert at 22:45
Dirk Krause on Tim Cook: The Genius Who Took Apple to the Next Level :: Leander Kahney #nowreading at 21:45
Sven Bühler on Arlo Abonnements at 19:59
Christian Just on Tim Cook: The Genius Who Took Apple to the Next Level :: Leander Kahney #nowreading at 10:41
Chris Frei on Schnelle Updates beim Galaxy S10 at 10:03
Harald Gärttner on Withings Waage erhält Funktion zur Herzgesundheit zurück at 09:37
Volker Weber on Tim Cook: The Genius Who Took Apple to the Next Level :: Leander Kahney #nowreading at 17:30
thorsten ebers on Tim Cook: The Genius Who Took Apple to the Next Level :: Leander Kahney #nowreading at 16:50

Ceci n'est pas un blog

I explain difficult concepts in simple ways. For free, and for money. Clue procurement and bullshit detection.

vowe

Contact
Publications
Stuff that works
Amazon Wish List
Frequently Asked Questions

rss feed  twitter  amazon

Local time is 23:53

visitors.gif

buy me coffee

Paypal vowe