Distimo: When It’s Time For A Mobile App Sale, Choose Your Price Wisely

In an insanely crowded mobile apps marketplace, pricing is one of the ways to stand out from the competition: for better or worse. Distimo shared some data Thursday on app-pricing strategies as well as the old-fashioned retail concept of the sale.
If you’re a mobile developer who isn’t sure about the whole “freemium” thing–as in, getting customers in the door for free and finding 400 little ways to charge them once they’ve arrived–application pricing is critical. Those who have erred on the high side and aren’t getting the response they would like should consider a sale: in Apple’s App Store average revenue rose 41 percent on the first day of a sale and by 22 percent over the course of 15 days, Distimo said in a new report on app pricing.
You still have to be smart about choosing the new price. Applications on the expensive side of things, those up around $10, tended to lose revenue overall if they made a timid cut to the price, Distimo said. But steeper cuts paid off: “For example, offering a discount of one dollar on an application that normally costs $7.99, lowers the revenue, whereas offering a discount of three dollars on average increased the revenue by 131 percent,” the app-marketing company wrote in the report.
Those considering a change to the price of their app can sign up to download the full report here. The report covers the activity in Apple’s App Store and Google’s Android Market during the last three months of 2011 in the U.S.