There are many tactics mobile games and apps can borrow from retailers and e-commerce stores when it comes to selling In-App Purchases. Dynamic Pricing is one of the most powerful of them. This post is going to look at the low-hanging fruit with dynamic pricing that almost every mobile app or game can take advantage of, quickly and effectively. WHAT is Dynamic Pricing? Changing...
In case you aren’t updated on the current affairs, 2014 is shaping up to be a controversial year; and we’re not referring to Justin Bieber’s antics, Mr. Kejriwal’s dharnas or Mr. Modi’s development stories. Instead, a new contention is brewing in the annals for us which is every entrepreneur’s one of the worst nightmare: deciding how much to charge for your product 😉 Pricing is one of the most...
Product pricing is a touchy feely subject, hence the following disclaimers for I get into it… There is NO one-size-fit-all solution to your pricing problem. Don’t look for a one time silver bullet for product pricing. Pricing varies drastically between verticals, products, company stage, etc. This article is meant to give thought frame work around pricing and not a meant to be a perfect...
There is no magic formula for pricing a product. You can make a start by getting answers to these queries: Can you estimate the value to customer in terms of increased revenue or cost savings? How does your competition price their product? Should your product be priced higher/lower based on more/less capabilities? What is your total investment and annual expense (development, support, sales and...
For mobile apps, there are three dominant pricing strategies: Premium, Subscription and Freemium. According to a report by app-store analytics company, Distimo, freemium now accounts for 71% of Apple AppStore revenues in the US, up from somewhere around 50% last year, and rising. In Asia, freemium is 90% of App Store revenues. Is freemium always the most optimal? What factors should you consider...
Nobody in India buys software. If the above sentence draws your attention, read on! If you are based out of India, think of the last time you bought software (yes packaged products). Now think of all your friends and guess when they bought software. Now, here’s the clincher, “When was the last time you bought software made in India?”. 99% of the people, irrespective of their socio-economic status...
The trend of pure-play SaaS providers and on-premise software ISVs diversifying into SaaS is on the rise. SaaS revenue for global top 10 ISVs forms 40% of all software revenues. According to Gartner, the SaaS revenues will grow annually at 17.5% to form 24% of all software revenues in 2016. This would amount to USD 22.5 billion up from USD 14.5 billion in 2012. While SaaS makes a perfect business...
A year back I was involved with a leading mobile apps company on an issue related to product pricing. The company developed customized mobile apps for business. At the time it had a staff of 20 programmers and reasonably successful – having on its customer list several top global corporations like cola companies, few leading banks, advertising giants and others. It had revenues close to USD 1...
Enterprise as well as Consumer Software is moving fast towards a Software As A Service (SaaS) model. Who would not like paying a per user, per month charge as opposed to doling out huge amounts of money for licenses upfront and paying 16 to 20% Annual Maintenance Charges year after year! But the short history of SaaS companies is already full of companies that grew too quickly, or chose the wrong...
“Not meeting desired sales target?” is perhaps the most important question in any of senior management meetings. But how do most companies react? Answer: “Re”setting the targets,“Re”structuring marketing campaigns and finally “Re”placing sales team (starting from executives ending up replacing sales director) and what will happen by doing several “Re’s” together…absolutely nothing. On the...
