By: Armando Pantoja (TallGuyTycoon)
Sat Jan 22 | 5 minute read

How to determine the best price for your app

Figuring out how much to charge for an app is not easy an easy task.

The average selling price for applications continues to decline. Some of that decrease has to do with increased competition, another has to do with app developer revenue shifting from upfront payment, to in app purchases and upgrades.

PARIS, FRANCE – JUNE 03: In this photo illustration, the logos of the applications, iTunes Store, App Store and iTunes are displayed on the screen of an iPhone on June 03, 2019 in Paris, France. The multimedia application iTunes should disappear tonight at the end of the opening conference of the WWDC held Monday, June 3 in San Jose (California). According to information from several American reference media, the Apple computer group will replace the platform with a trio of independent applications for Mac each responding to a dedicated use: Music, TV and Podcasts. (Photo by Chesnot/Getty Images)

App pricing has many determining factors including niche and functionality. Niche had to find apps can sell for much more than more general market apps such as games.

As many of my followers know, I am the original developer of, who I sold a year or so ago to a larger company.

When I completed development of Keyprowler, years ago, I created a website and put my product up for sale. The first day, to my amazement I got a sale. What a wonderful feeling, but then nothing, for two weeks.

I soon discover my problem was pricing, $29.99 was too low, software is one of the few industries, and especially in my former marketplace (monitoring software) people were willing and expected to pay more for a good product, they were suspicious my price was so low.

After A-B testing with the price, I discovered that the sweet spot was $69.99, much higher than I thought people would pay. After interviews with several clients, I learned that users are cautious about cheap apps that they need to function correctly. There is that sense that you might have cut corners to save a few bucks in the development phase if you charge too little.  This was a niche product that people needed to be sure would function 100% as described, so they would pay more for peace of mind.

After raising the price to $69.99, the sales began rolling in, I was ecstatic.

The key to pricing your app is finding a balance between functionality and what users will find reasonable. Speak with your users, find out how your app solves thier problems, if this problem is big enough, and cannot be solved in any other way, a user will pay much more than an app that has many competitors and solves very little.

This post is the opinion and/or actions of Armando Pantoja and/or the author only. It is NOT financial advice. All investing and trading in the securities market involves risk. Any decisions to place trades in the financial markets, including trading in stock or options or other financial instruments, is a personal decision that should only be made after thorough research, including a personal risk and financial assessment, and the engagement of professional assistance to the extend you believe necessary.