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08-08-2008, 08:51 AM
| #1 |
| Senior Warrior Member War Room Member  Join Date: May 2008 Location: South Florida
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|  8 People Bought a $999 Feature-Less App from the iPhone Store...
ave you ever wondered what to set your price-point at? Are you trying to decide whether to sell at $7, $17, $27, $47 or $167? Why not try $999? That's what this iPhone developer did. He created an app called "I Am Rich" with a secret mantra that, when clicked displayed a glowing gem. That's it. And 8 people bought it resulting in $5600 within 24 hours. So don't worry, there's a market for anything. Even iPhone apps that don't work!  |
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08-08-2008, 09:37 AM
| #2 | |
| Senior Warrior Member War Room Member  Join Date: Jun 2006 Location: USA
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| Quote:
His price point was WRONG! The POPULATION of the market for featureless $999 iPhone apps isn't large enough to sustain his business. What good is a higher price point if you can only ever sell your product/service to a handful of people? (Unless of course you're selling $100 Million yachts, etc.) If he would have charged $9.99 perhaps he would have sold 100,000 of them. Now that would be a story! Not only that, but he would have 99,992 more customers to market future apps to. | |
| "You can have everything in life that you want if you just give enough other people what they want." ~ Zig Ziglar | ||
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08-08-2008, 10:41 AM
| #3 |
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I'm not sure $5600 in a day is a "fatal flaw." I could use some failures like that. |
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08-08-2008, 10:51 AM
| #4 |
| marketing online since 99 War Room Member  Join Date: Jul 2005 Location: Houston, TX, USA.
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This is too cool. Marketing to the affluent... If Apple didn't remove that app, I bet there would be a TON of sales over the next few weeks. Look at the BUZZ and press that it created. Killer idea - wish Apple didn't remove the app so we could see how many of these were sold. In economy like the one we're in, those with massive amounts of money to spend will do so in crazy ways - this is just one great example of creating something that would appeal to those "gotta have everything and look at me" types of people. Good find. Any iphone app developers on the forum? PM me. |
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08-08-2008, 10:52 AM
| #5 |
| Senior Warrior Member War Room Member Join Date: May 2008 Location: South Florida
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The more I think about this...
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08-08-2008, 10:53 AM
| #6 | |
| Senior Warrior Member War Room Member Join Date: Jun 2006 Location: USA
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That's not the point. I guess, perhaps if Apple had left the app up, we could see if the market is really sustainable. But since it's not offered any more, we can only speculate. I'd wager that it wouldn't be sustainable. But I've been wrong before.  IMO a lower priced app would lead to more customers and long term profits. People who will pay $9.99 for apps will probably buy more. Those that buy $999 ones for flash probably won't. But I guess you could cross promote other "status" products/services to them. Hell, I may be blowing my own argument out of the water here! But the point I was trying to make is that a higher price point may not always be the best price point. You have to take market population into account and how many potential buyers you have at each price point. Then you have to be able to determine your lifetime customer value. Then you can accurately decide whether you're better off with fewer customers at a higher price point or more customers at a lower price point. | |
| "You can have everything in life that you want if you just give enough other people what they want." ~ Zig Ziglar | ||
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08-08-2008, 10:53 AM
| #7 | |
| Senior Warrior Member War Room Member  Join Date: Dec 2007 Location: , , USA.
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Yeah, with numbers like that...I look forward to failing | |
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08-08-2008, 11:05 AM
| #8 | |
| ★★★★★ War Room Member  | Quote:
What if apple didn't remove it? More sells would have come in I think. Nevertheless, That thing is pointless and people are so Dumb for wasting money on something useless that will supposedly feel better by telling people you are "Rich" | |
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08-08-2008, 11:09 AM
| #9 |
| Advanced Warrior War Room Member  Join Date: May 2006 Location: Mostly Oklahoma, Sometimes Europe
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Two possibilities come to mind. First, maybe he MEANT to do $9.99 and left out the "." ? Second, maybe he's put a $999 launch price on it, then when it dries up, he can legitimately come out with something like "$999.00 value, Now only $19.99" After all, if 8 people bought at $999, then it's a legitimate way to justify saying it was a $999.00 value. BTW - How do 8 purchasers at $999 = $5600? Wouldn't that be $7992? Or were they not all in the first 24 hours? Scott Burton |
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08-08-2008, 11:19 AM
| #10 | |
| Senior Warrior Member War Room Member Join Date: Jun 2006 Location: USA
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I see that. I didn't read the article at first. Was just going off the OP. I'm sure more sales would have come in. Especially with the extra publicity. Again, I was speaking to the issue of price point. For example, at $99 there may be a whole slew of people who would pay for that to portray the image of "I am rich". And lots of people would still think they have too much money. Which is the point, I guess. Then you would have to weigh the long term effects of having x # of customers at $x vs. y # of customers at $y by determining the lifetime customer value in each scenario. I'm not saying that focusing on the $5,600 is wrong, but if that's all you see out of the deal you're not thinking very strategically. And I look forward to competing against folks like that.  | |
| "You can have everything in life that you want if you just give enough other people what they want." ~ Zig Ziglar Last edited by Lance K; 08-08-2008 at 11:22 AM. | ||
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08-08-2008, 11:20 AM
| #11 | |
| Senior Warrior Member War Room Member Join Date: Jun 2006 Location: USA
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| "You can have everything in life that you want if you just give enough other people what they want." ~ Zig Ziglar | ||
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08-08-2008, 11:26 AM
| #12 | |
| IMing's Jack Sparrow War Room Member  Join Date: Oct 2005 Location: Hants, United Kingdom.
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30%????Dang, I'm at the wrong end of the marketplace again! Rufus | |
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08-08-2008, 11:56 AM
| #13 |
| Advanced Warrior War Room Member Join Date: Feb 2006 Location: , , Canada.
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From what I understand from the OP article, a person complained about the app and Apple took notice of the one complaint and took the app down. You don't want to get on the bad side of Apple or you'll be a bad apple and maybe not even get paid. -Steve |
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08-08-2008, 01:33 PM
| #14 |
| Brute Force SEO War Room Member  Join Date: Jul 2005 Location: Gold Coast, , Australia.
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My Sister in Law consulted with me on this point.. She's a wedding photographer, and originally offered 3 different packages. in 5 mins, between us we changed them up and came up with 4. the top one now was 100% more expensive than her original high ticket item.. she nearly doubled her income in the next 12 months.. Some people just always choose the high end product.. hth's Pete |
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08-08-2008, 10:32 PM
| #15 |
| Entrepreneur War Room Member  Join Date: Apr 2007 Location: Rincon, GA
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Those 8 people would not have bought it if it was $9.99. |
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08-08-2008, 10:39 PM
| #16 |
| Business Man War Room Member  Join Date: Jul 2008 Location: Globe Trotter from Delhi, India
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That's cool! But the most important thing to notice here is that these are the people that are buying 999 app UPFRONT. And the warriors that are talking about lifetime value fail to realiae that these people have much larger lifetime value than those who buy jusy 9.99 app upfront. And this is exactly why they would like to do it again and again and again! I'm pretty sure the few benefits that were depicted to the prospect were strong enough to make them buy, so I'd love to see that because that is great marketing!. . |
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08-09-2008, 12:11 AM
| #17 | |
| Senior Warrior Member War Room Member Join Date: Jun 2006 Location: USA
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And you're not taking into account overall VOLUME of CUSTOMERS at the different price points. | |
| "You can have everything in life that you want if you just give enough other people what they want." ~ Zig Ziglar | ||
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| Tags |
| $999, app, bought, featureless, iphone, people, store |
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