The product pricing strategy performs a necessary role in preparing your app for the initial traction and perceptibility in the app store. How you determine the price of your product decides the success of your mobile app development in phases of the number of downloads and user maintenance in the long route.
Mobile app pricing is one of the difficult and important parts of mobile app development. It is necessary to utilize the exact pricing strategy if you want your app to be marked on the app store. There are several factors to consider when choosing the right pricing strategy for your mobile app.
In a survey, it found that higher than 30% of the traffic arises from mobile devices and smartphones, and hence it is essential to choose the right pricing plan.
Separate research we came across by App projects that in 2020, global app store revenue will rise to $101.1 billion.
That’s a huge marketplace.
Apps are growing more and more valuable to customers, which is also making the market harder and harder to penetrate. That is why taking the time to understand customer psychology and pricing strategy needs to be a section of your business plan.
Types of Mobile Pricing Strategies
- Who doesn’t choose free? Offering a free app is surely one of the most effective models, especially if you plan to attract many users. However, how do you earn money? Well, perhaps that is not the purpose of your app—not directly, at least.
- A developed mobile app can increase publicity for businesses and expand the engagement of their consumers.
- It increases the probability of downloads.
- Ads can generate large amounts of money.
- For Eg: Facebook’s mobile advertising arrived at 82% of all revenue in the second quarter of 2016.
- You need a number of users to start creating significant income from ads.
- Daily updates can be discontinued.
- With the freemium pricing model, the app is free to download and install, but there are extra lines, features, and incentives within the app that customers can choose to pay for them. To earn money from apps, in-app purchase chances has created, like buying life in Candy Crush.
- The app is free brings much organic traffic
- You can turn to upgraded versions.
- It will not surprise customers if it is already a popular app.
- Need to manage accurately; else, they turn into an annoyance for the users.
- Such an app can be burden on the app developers
- Approximately 213,000 apps are paid on the Google Play Store as opposed to 2,475,000 that are free. So, this model is a major critical path to earning money on apps. The effort is particularly fierce when there is a potential free app with similar functionality possible already.
- Business with lots of customers, like good brand popularity.
- Payments have done before the user undergoing the app, which means revenue is not reliant on the user’s interaction with the app. Still, such interactions can affect reviews & ratings in the extended run.
- The initial price may serve as a check for considered users.
- A paid app that under-delivers on its words is more apt to receive lots of bad reviews than flawed free apps.
- These apps are a mixture of paid and freemium models, where users are requested to pay for the app but have the opportunity to unlock extra features by paying extra. Paidmium is not yet a powerful pricing strategy, but it has the potential to open new revenue brooks. Paidmium may run well for music apps, social networking, and navigation apps.
- Provides ongoing benefits for app developers
- Pushes developers to be productive
- Find new methods to encourage users to spend more money.
- Users are bound to see dual taxing and without quality content overbearing.
- It needs regular high-quality updates that need more time to implement.
Best Product Pricing Strategies for your Mobile App
- Study the Market and Competitive
- Market-driven pricing is an inclusive approach to land at an excellent price point for your mobile application. Analysing the competitive landscape and your user base can assist you to discover opportunities where the competition is lacking.
- Test Variety of Prices
- The most reliable way to price the product is to test it at various prices and see how the possible clients respond to it. An app is something that is not just what it is deserving, but something which the customers are prepared to spend.
- Value always be greater than the price
- Pricing is not just numbered but is more about social performance. When people buy something — they put forward similar products or anything that they come across. There are be varying prices, depending on how they are expressed and the story is moved to the customer. However, the price of the product must be higher than the price to earn customer attention.
- Analyse all factors while choosing the price
- Before you can think about the cost of app development, you need to make sure you designing an app that users want to purchase. Of course, you have numerous ideas but will you be able to create those ideas into an interface that is not only engaging but also working for the end-user who will be buying your product/app.
- The business price has various factors such as:
- How many full-time developers are needed?
- Do you require a web designer or can you get by outsourcing?
- Price should be feasible for the customers
- Before jumping into the mobile app development lifecycle, it’s necessary to run through a range of relevant factors that streamline the decision-making method. The pricing strategy should build a meaningful income current and loyalty among customers.
The cost of mobile app development cannot be fixed and developers have to be adaptable enough to explore with different pricing points. The best product pricing strategy is to launch an app with a costlier price tag and decrease it after a few months. Remember that the launch time is the greatest time to attract maximum clients, and you should not charge atrociously. You should price it fairly and at the same time take benefit of the current market price.
Deorwine Infotech is the best mobile app development company in USA, which provide all solution for mobile apps and cost-effective solution. We estimate to our clients only, which we give them. We always give complete support to our customer after deployed project.