Pricing an App…Not so easy!

Some of you know that my iPhone/iPod Touch game “Which Way?” was released on iTunes a few days ago. The thing that you might not know is how hard it is to decide on a pricing value and distribution methodology for an App. For example, should I price an app for 99 cents, and hope for a huge amount of sales, or should I set it to lets say $4.99 and just hope for a smaller number of buyers? Another thing is, should I provide a free version for my App or just provide a paid version? If I provide a free option, customers may be satisfied enough to not buy the paid version.

Personally, I’ve downloaded a lot of free applications, and never minded buying the Full paid version, just because I find the free version good enough for my needs. But as a developer, I sure appreciate customers who buy the Full version.

What I’m trying to say is, what is the right way to do this? What are the different factors that affect the decision?

When I first released “Which Way?”, I priced it for $1.99, but later on I decided to put it on sale for $0.99. I want to see the effect of the price difference.

What do you think??

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~ by Said Marouf on May 9, 2009.

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