Start Up Blog

Pricing & relativity

Posted in entrepreneurship by Steve Sammartino on December 19, 2009

While reading SamsMojo earlier this week I was surprised to learn the prices of the top 10 selling iphone apps for 2009. In fact, the price for the top seller was more than 10 times what I expected at $99 – The TomTom navigator app. Not the $3 we’d get as a response if we asked a random sample of people.

Sure, it’s a high price as far as iphone apps go, but it much cheaper than a $500 TomTom. The point for startup is this. There is no such thing as expensive. There is only expensive in relation to the set of relevant substitutes. And when we are pricing our brand or startup all pricing decision need to be made relative to the alternatives.

twitter-follow-me

iphone apps & mini-preneurs

Got an idea for an iphone app you can’t find?

Great – there’s like a zillion iphone app developers waiting for your business right here, and here and here.

iphone-apps

So write the brief for the app you want and can’t find, contact the developers and get it made. Get your itunes account up, choose a cheap ‘low barrier’ price, like a ‘dollar’ or so and sell that puppy. Remember it’s better to sell a $1 iphone app a lot of times than a a $5 or $10 one no times at all.

This micro-entrepreneurs opportunity is as simple as they come. Global distribution with an engaged audience – rare indeed. A classic ‘trend hijack’.

Go now – make it, sell it.

twitter-follow-me

Follow

Get every new post delivered to your Inbox.

Join 1,240 other followers