* The Business of Software

A former community discussing the business of software, from the smallest shareware operation to Microsoft. A part of Joel on Software.

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Andy Brice
Successful Software

Doug Nebeker ("Doug")

Jonathan Matthews
Creator of DeepTrawl, CloudTrawl, and LeapDoc

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BreezeTree Software

Bob Walsh
host, Startup Success Podcast author of The Web Startup Success Guide and Micro-ISV: From Vision To Reality

Patrick McKenzie
Bingo Card Creator

Choose your price aproach

Did anyone try that?
Like this (bottom of the page):
http://www.slax.org/

Does it work and what best way to implement it?
alexandar Send private email
Tuesday, February 05, 2013
 
 
I haven't, but I'm seriously considering an "Apple App Store" approach where all my apps will be just $0.99, to see what happens. Seriously. If 1000 buy, then that's almost $1000 bucks just for them to get a download, and all automated. Nothing for me to do but just let the money roll in and downloads go out.
Harry Phace Send private email
Tuesday, February 05, 2013
 
 
And I don't mean my app will BE in the store; it'll be on my own site through PayPal. Seriously might do it this weekend.
Harry Phace Send private email
Tuesday, February 05, 2013
 
 
A thousand customers is a lot of support time for just $1000. Let's say on average every customer only asks for 10 minutes of your time. That's 166.67 hours. Divide that by the amount of money you make (it won't be $1,000 because of the merchant fees, but let's just say it will be), that works out to a little less than $6 / hour. I.e. below minimum wage in America. And that's not counting the time you spent to make and market your app.

Unless you're offering exactly no support, that sounds like a mistake, Harry.

That's not to say your $.99 approach won't work, but I just suspect you haven't thought about the expenses that come with a growing userbase.
Wyatt O'Day Send private email
Tuesday, February 05, 2013
 
 
You're right when you said "no support". It's a simple app that needs no help. Well, it's got a help file, but there's no need to contact me about the app. It's pretty basic.
Harry Phace Send private email
Tuesday, February 05, 2013
 
 
99 cent apps work in an app store because they can be impulse purchases. They can be purchased with a couple clicks.

But if someone is buying through your site, then in order to purchase they will either need to pull out their credit card or enter their Paypal account. That is a lot more effort, so it's no longer an impulse purchase. If they are willing to go through that trouble, then they would probably be willing to pay 1.99 or 2.99 (or more). But by all means, experiment with the price to see what works best for you.

Also, and you will probably find this out on your own, don't underestimate the level of support required. Some users are especially...shall we say "needy" when it comes to support. Even if you say it is a "simple" app. Even if you take steps to avoid answering the same questions over and over (by setting up FAQ or a forum on your site), those things take time also.
Shawn O'Hern Send private email
Tuesday, February 05, 2013
 
 
Sorry, I didn't mean to hijack the thread. To answer the original question, I would liken a choose-your-price approach to asking for donations. Which...is not the best way to make money.
Shawn O'Hern Send private email
Tuesday, February 05, 2013
 
 
@ "Let's say on average every customer only asks for 10 minutes of your time"

Wow,I hope we are not selling our products to mentally sick people...You have grossly overestimated assesment about percentage of those who needs help...
Every customer?Really? I'd say 1 out of 10-15 asks something little...and maybe 1 out of 20+ has something that takes some thinking before answering
alexandar Send private email
Wednesday, February 06, 2013
 
 
Harry, you make sure you do it so that you can reverse it...I mean once you have shown people that you can sell it for 0.99 than there is no returning back to 20$
alexandar Send private email
Wednesday, February 06, 2013
 
 
I disagree, I think you can return the price back to $20 easily. Most people will never know it was ever available for $.99.

People understand the concept of "limited time" sales. And I have found they can be extremely effective especially on the Mac App Store.
Nick Moore Send private email
Thursday, February 07, 2013
 
 

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