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Apple announces ‘upgrade’ to App Store pricing, adding 700 new price points

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Re: Apple announces ‘upgrade’ to App Store pricing, adding 700 new price points

#22
post #19

Actually what the motivation in having price point ending in .99? Why can't I simply price my app at, for instance, 10? I understand there is a pricing psychology in play and I faintly remember it has something to do with accounting but I can't recall the specifics. Can anyone shed some insight?

> Why can't I simply price my app at, for instance, 10?

The article says you can. It's one of the "supported conventions".

Re: Apple announces ‘upgrade’ to App Store pricing, adding 700 new price points

#23
post #11

I wonder if more apps will go for, say 50¢, instead of free + $1.00 IAP. I miss the pre-IAP days.

Probably some. I think this change has more to do with emerging markets where users expect to make very small payments (and receive smaller benefits) than western users are accustomed too.

Re: Apple announces ‘upgrade’ to App Store pricing, adding 700 new price points

#26
post #4

10x the number of price points is nuts. Then again, at this point, Apple is a treasury operation that also sells phones and computers.

> Then again, at this point, Apple is a treasury operation that also sells phones and computers.

I'm guessing you are joking but incase you were not, Apple still makes far far more from selling new products than they do from investments. So that statement is false or misleading.

Re: Apple announces ‘upgrade’ to App Store pricing, adding 700 new price points

#27
post #19

Actually what the motivation in having price point ending in .99? Why can't I simply price my app at, for instance, 10? I understand there is a pricing psychology in play and I faintly remember it has something to do with accounting but I can't recall the specifics. Can anyone shed some insight?

The psychology is (allegedly) simple. When you see a price like $4.99, unless you're pre-conditioned, you are expected to read it as FOUR-99, essentially $4, even though it's $5 for all practical purposes. Often it is styled as $4.⁹⁹ to double down on this effect.

This looks silly, and many people, including me, have taught themselves to recognize this pattern and round the price correctly without a mental effort.

Some people, of course, fall for it; I suppose younger kids are heavily affected.

Re: Apple announces ‘upgrade’ to App Store pricing, adding 700 new price points

#29
post #19

Actually what the motivation in having price point ending in .99? Why can't I simply price my app at, for instance, 10? I understand there is a pricing psychology in play and I faintly remember it has something to do with accounting but I can't recall the specifics. Can anyone shed some insight?

> Why can't I simply price my app at, for instance, 10? The article says you can. It's one of the "supported conventions".

My bad, completely missed the second table. Thanks for pointing it out!

Re: Apple announces ‘upgrade’ to App Store pricing, adding 700 new price points

#30
post #11

I wonder if more apps will go for, say 50¢, instead of free + $1.00 IAP. I miss the pre-IAP days.

Isn't this IAP model better for both users and makers?

I think the free-to-play model has been destructive for many apps and games. The rush to the bottom with $1 price tier, introduced by Apple, was also destructive in itself.

The App Store is a huge market, fortunes have been built, but I know many indie developers who have been reluctant to adopt the F2P model.

As a user, I don't like it either.

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