Tag Archives: pricing

Mobile app marketing problems

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I love the mobile apps business. If done right, there’s a lot of money to be made here. At Collectorz.com, we’ve been selling apps since May 2009 and it’s a big part of our business now.

However, from a software marketing perspective, I keep running into 3 main problems of the current mobile apps biz (one of which is App Store specific):

  • No customer information (App Store specific)
  • No ways to do coupon or bundle discounts
  • Low pricing levels

Here’s the full story on all three, including my suggested workarounds:

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Software pricing : Standard and Pro editions

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Our Collectorz.com programs are all available in two editions: Standard and Pro. The Standard edition sells for $29.95 and is lacking a couple of “advanced” features compared to the $49.95 Pro edition.

We have been selling our software this way for a long time. Before we introduced these two pricing levels, we were selling our software for $29.95. Adding the more expensive Pro edition for $49.95 was a good way to increase the price without dropping the old price. After the change, about 80% of our customers started opting for the Pro edition, causing a nice jump in profits.

The presence of two editions also gives our visitors a choice. Price conscious customers can opt for the cheaper Standard edition. Buyers just looking for the best, regardless of price, can choose the Pro edition. The availability of choices helps to increase conversion rates.

As you can see in the image above, we have done something similar with our range of barcode scanners, a cheap CueCat for $19.95 as an entry level scanner, a deluxe laser scanner for $139.95, and a mid-level option for $79.95.

But offering multiple editions also has one drawback: it adds complexity. Continue reading →

Web-applications : first thoughts

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connectTwo months ago I posted about the launch of our first web application and our reasons for diving into online apps. Last week we launched our second web-app for cataloging books, so I figured I’d let you know my first thoughts about doing online software.
Tip: For the full story, attend my Web-Apps presentation at the ESWC conference in Berlin. Continue reading →

Odd Pricing (.95) vs Rounded Pricing

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A few weeks ago, Christian Mairoll of Emsi Software posted on the ASP forums about an interesting experiment he tried. He replaced all .99 and .95 prices (often called “odd prices”) with rounded prices. He reported that for him it made no difference. Interesting…

So I tried it myself. Last week I started an A/B split test on this. Group A getting my regular .95 pricing, group B getting rounded prices. But for me, it did make a difference. Here’s my results after 8 days:
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