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Underscore Price Dynamics

marco.org

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Re: Underscore Price Dynamics

#71

Post by krmmalik »

patio11 wrote: post #70
ghshephard wrote: post #36

Earlier quoted context omitted.

You know best - but don't overlook the possibility of in-person training for groups. It's halfway between an event and a training course. I just spent a couple weeks with 7 other people learning about Cisco Routers from a single instructor - Total cost was $7300 each - so, $50K for a two-week class. There's really good money in in-person class training.

True online as well, by the way. The kicker is that this plays really really well with established companies. Pretend you're hypothetically a Cisco Routers consultancy. Parachuting into a random company and solving their Cisco Routers problems requires a very experienced consultant, both in terms of technical mastery and in terms of soft skills like interfacing well with clients' technical staff, dealing with politic…

Great advice Patrick. Thank you!

Re: Underscore Price Dynamics

#72

Post by kazagistar »

ghshephard wrote: post #22
radley wrote: post #7

On Android a common method is free / prime. A free version has basic features while a paid prime apk acts as an unlocker for advanced features. Haven't heard of removing a free app and replacing with a paid. That doesn't make sense or work for anyone. That free app is an essential promotion. The only downside/difficulty is all the user support. Free users can be pretty rough.

The two removals mentioned by marco in his article were not a case of removing a free and replacing with a paid. In one case, it was removing the free competition to an already existing paid application. (Only works if there isn't other free competition in the market) The other case has started to really annoy me - it's where developers are starting to remove their version 1 application, and replace it with a version…

You seem to be under the impression that you own the content, as opposed to it being rented to you at the whim of the companies involved.

Re: Underscore Price Dynamics

#73

Post by peterjancelis »

ProblemFactory wrote: post #59
npalli wrote: post #54

Earlier quoted context omitted.

Smugmug -- started 2002 Freshbooks -- started 2004 37Signals -- started 1999, basecamp in 2004 FogBugz -- started 2000 Point being, these are "old" business. If you are starting something today with all the hundreds of thousands of free apps and freemium based models, the same lessons would not apply.

All of these are also apps for businesses, not casual entertainment for consumers. Also, they are mainly delivered via web, not Apple or Google app stores, which makes it possible to offer a time-limited free trial with no free plan. I'd hypothesise that both of these are more important factors than being started in 2003 vs 2013. For a freelancer, $100/month is a good deal if it allows you to get a few more billable…

Google Apps marketplace allows for free trials.

Re: Underscore Price Dynamics

#74

Post by wensing »

patio11 wrote: post #69
cs702 wrote: post #46

Earlier quoted context omitted.

Insightful. On the other hand, many self-funded businesses are doing quite well charging for services targeted to non-mass markets -- for example, SmugMug (for professional photographers), FreshBooks (for invoicing & accounting), 37 Signals (for team productivity), etc. Some of these businesses are essentially one-person operations -- e.g., AppointmentReminder.org. I would include FogBugz in this list. "Make somethin…

n.b. I'm honored to be included in that august company, but just to avoid people getting the wrong impression, Appointment Reminder is quite a bit smaller than every product on that list. With regards to the larger point: there are many, many ways to successfully take money from customers. If you want to build a business mostly on the $20 to $50 per month low-touch SaaS model, you can do that, quite successfully. (Co…

Based on our experience, this all rings true.

And may I suggest zero touch until you get to $XXX/mo or you are very, very confident that Mr $50/mo will almost never ever cancel.

Re: Underscore Price Dynamics

#75

Post by berzniz »

mesozoic wrote: post #66
berzniz wrote: post #43

There is one hack that seems to work. Keeping the app free for its first week on the store. This gets the app in the hands of the right people, the "early adopters". If the app is good, they'll use it and recommended it to friends long after the promotion week is over. People are not afraid to pay when the trial was confirmed as a success by their friend (who is an iPhone genius).

Do you have any case studies of this you can refer us to?

Can't provie it, but I'm seeing this for my own app (It's in Hebrew and quite successful in Israel http://bitly.com/DriveModeHeb ) and other previous apps.

Re: Underscore Price Dynamics

#76

Post by libovness »

FollowSteph3 wrote: post #37

People say they are willing to pay but more often than not they look not to pay. Same as airlne tickets. Everyone complains the service and quality is terrible yet everyone is always looking for the cheapest price. It's the real consumer behavior drives the markets rather than our idealized behaviors ;)

Totally agree. If you had four movie theaters that:

1) Charges $12 up front 2) Shows the movie for free with ads 3) Allows you to decide if you want to pay $3 for each quarter of the movie

Easy: #2 or #3, then #1.

Re: Underscore Price Dynamics

#77

Post by klaasmer »

libovness wrote: post #76
FollowSteph3 wrote: post #37

People say they are willing to pay but more often than not they look not to pay. Same as airlne tickets. Everyone complains the service and quality is terrible yet everyone is always looking for the cheapest price. It's the real consumer behavior drives the markets rather than our idealized behaviors ;)

Totally agree. If you had four movie theaters that: 1) Charges $12 up front 2) Shows the movie for free with ads 3) Allows you to decide if you want to pay $3 for each quarter of the movie Easy: #2 or #3, then #1.

You would rather watch the movie with ads?? Really? I would pay to get rid of ads everywhere.

Re: Underscore Price Dynamics

#78

Post by giovannibajo1 »

nawitus wrote: post #21

>Everyone outside of the immediate Apple tech sphere assumes, since I make apps for iOS, that I work for Apple. Interesting. I've never heard anyone having this misconception. Everyday people seem to know that app developers are completely different from Apple or other mobile phone manufacturers.

Agreed. On the other hand, basically everyone but developers believe that billing/CC problems in the applications stores are developers' fault.

Re: Underscore Price Dynamics

#79

Post by ceolaf »

FollowSteph3 wrote: post #37

People say they are willing to pay but more often than not they look not to pay. Same as airlne tickets. Everyone complains the service and quality is terrible yet everyone is always looking for the cheapest price. It's the real consumer behavior drives the markets rather than our idealized behaviors ;)

Without reliable (and valid) data about service and quality, it is impossible for consumers to make intelligent purchasing decisions based upon those criteria. Without differentiation in the market along those criteria, there is no decision to make.

We cannot really know how many customers might make such decisions because such information is not readily available. Even when the information CAN be found, there is a cost to finding it (i.e., in time and inconvenience, usually). As best I can tell, there differences in quality across airlines is very low, and they actively try to hide information about prices.

Might app users be more willing to pay for apps if they REALLY knew the $1 or $2 was better than the free version?

It appears to me that this behavior is a rational response to a lack of reliable information. IAP purchases come after the customer has tried out enough of the app to have an informed view of its quality.

Re: Underscore Price Dynamics

#80

Post by sjs »

klaasmer wrote: post #77
libovness wrote: post #76

Earlier quoted context omitted.

Totally agree. If you had four movie theaters that: 1) Charges $12 up front 2) Shows the movie for free with ads 3) Allows you to decide if you want to pay $3 for each quarter of the movie Easy: #2 or #3, then #1.

You would rather watch the movie with ads?? Really? I would pay to get rid of ads everywhere.

That is not a popular stance. See cable television.
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