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Price Discriminate To Maximize Your App Revenue


Price Discrimination Increases Your App Revenue because you are effectively tailoring your app’s price to different segments of users. You may be able to price your app at $4.99 in the US and other wealthy nations, but sales would be very limited if the same price is applied to Third World countries. So implementing dissimilar prices for the same app to suit what individual users are willing to pay will solve this problem, and grow your app revenue by a great deal.

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 Figure 1: Will pricing this US$14.99 app lower in less-affluent countries increase its revenue? Source: play.google.com

Price Your App Depending On The Country’s GDP. Google Play allows you to price the same app differently based on geographic locations (Figure 2). Why not take advantage of this per-country allowable pricing to execute price discrimination? If you are not sure how to price your app in each country, look at the country’s Gross Domestic Product (GDP). The GDP is a pretty good gauge of a nation’s standard of living. Scale your app price in proportion to the country’ GDP.

 google-country-pricingFigure 2: Google Play allows you to establish a different price for an app in each listed country. Source: google.com

Price Discrimination Is Ideal For Android Apps because Android users come from various countries and prosperity levels, and they own a range of low-cost to exorbitant Android devices. Therefore it doesn’t make much sense for the developer to implement one worldwide price point for his Android app.

What about Apple? Apple is the only iOS device manufacturer and the price of their devices is uniform globally. If one can afford to buy an iPhone or iPad, then Apple has a single category for them: “attractive, higher income” users. Apple doesn’t allow price customization for the same app in different countries or regions. It doesn’t need to.

Featured art: choice.com.au

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