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Here’s a Quick Way to Determine Price of Your App (Regional Pricing Case Study)

Photo by Markus Winkler

In this article, we will look at a regional pricing case study of popular top-selling apps and you will also learn:

  • What is regional pricing
  • How charging less can create problems
  • Regional pricing of popular apps (Case Study)
  • A quick way to determine the price of your app

How does this sound? Let’s get into it!

What is regional pricing?

Is a change in pricing of your app/game can vary depending on the country.

Why does regional pricing work?

Reduction of price in some countries can lead to more sales of your game, app. Because people can’t afford to pay high prices.

This is common practice, for companies like Spotify, Valve(Steam)…

This leads to the question how do you set prices?

Value, not price.

Value = Price

People trade money for the perceived value of your app/game. The higher the perceived value is, the higher they can and will pay.

Price doesn’t matter without first considering value.

The next article will be about creating and communicating value. This article will help you charge and earn more. If you don’t want to miss it out:

Follow us here on Medium and Reddit.

It isn’t as simple as charging less.

You probably heard for saying

You get what you pay for.

Too low of a price can have a negative impact on your app sales.

Willingness.

Some segments are willing to pay more. That is why so many companies use tiered pricing systems.

And why setting good prices is important. If you don’t want to leave money on the table.

Let’s check the case study.

Case study:

In this case study, I looked at 10 popular paid apps and their prices in these 10 countries.

FL Studio Mobile costs almost $17 in Spain and only $3.16 in Brazil.

If you bought these 10 apps in Spain they would cost you $63.5

  • $47.85 In India
  • $36.7 In Brazil
  • $53.6 In USA

I also looked at the top 30 selling apps, in Spain, Brazil, and India.

Averaging price per app is:

  • $5.28 in Spain
  • $2.48 in Brazil
  • $1.2 in India

Note:
In India and Brazil top-selling apps tend to be gaming and customization related (Wallpapers, Launchers, Icon packs)

Spotify regional prices

A lot of these prices end with 9.

Does this make a difference?

According to profitwell it does. Having a price that ends with 9 increases conversion between 15%–20%

On other hand.

Prices that end with 0, 5 have better retention. Meaning they are better for subscriptions.

What can you learn from this?

Apps should cost less in countries like India, Russia, Bangladesh, Mexico.

How much less?

It mostly depends on the people using your app.

  • How much value do they get from your app
  • Can somebody meet their needs, wants for less

How to determent the price?

The right price is the price that maximizes revenue.

Purchasing power?

You can use purchasing power index to determine the regional price of your app. It can be a nice starting point.

1) Ask potential customers.

Van Westendorp’s Price Sensitivity Meter

  • At what price would you consider the product to be so expensive that you would not consider buying it? (Too expensive)
  • At what price would you consider the product to be priced so low that you would feel the quality couldn’t be very good? (Too cheap)
  • At what price would you consider the product starting to get expensive, so that it is not out of the question, but you would have to give some thought to buying it? (Expensive/High Side)
  • At what price would you consider the product to be a bargain — a great buy for the money? (Cheap/Good Value)

2) Price tests.

Asking questions to potential customers is always problematic. Because people tend not to act the way they think they would.

That is why running price tests might sound like the best way to determent price.

The problem is you need to learn how to test and you need a lot of sales. This isn't extremely helpful for your regional pricing.

But for determining subscription prices it might be a good idea.

Quick way:

Look for price ranges on the localized top-selling apps page. How much do popular apps cost?

This is a nice starting point. From there talk with potential customers.

Spain

India

Brazil

Russia

Mexico

If you need a link to a specific country let me know.

What do you think about regional pricing?

Do you think it is fair for people in Spain to pay almost $17 for FL Studio Mobile? Compared to only $3.16 for people in Brazil.

Read some of these articles:

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