There is an easy trick to increase revenue for your paid app or free app with in-app purchases on the Apple, Google Play and Amazon app stores. The best is that it takes less than 5 minutes to put in place so check it out below.
Psychology of App Pricing
Let’s say that you have a paid app or app or a free one with an in-app purchase on the Apple Store and that your pricing tier is “Tier1”. This means that each sale generates $US 0.99 of revenue and your proceeds are $US 0.70. The good thing with a price like $US 0.99 is that it’s still less than $1. Psychologically, there is less of a barrier between $US 0.89 and $US 0.99 than between $US 0.99 and $1.09 because in the first case we’re not crossing the $1 threshold .
If someone is ready to buy your app for less than a dollar, you might as well get the highest price possible which is 99 cents.
Apps are sold in different currencies, so prices vary of course and the numbers you get for each country may not be as well positioned. At the time I’m writing this post, the UK price for Tier 1 is £0.69, the Euro zone one is €0.89, the Australian one is $AU 1.29, … As you can see, all types of numbers.
But what if there was a way to increase those prices to make them look like 0.99, 1.99, 2.99, … ? After all, if someone is ready to spend €0.89 in Europe, they’ll probably still make the purchase if the price is €0.99 as it’s still under the price of €1.
That’s what I call “rounding up” prices. It’s not a rounding operation like in mathematics but instead the act of going the highest possible within your current price.
How to Round Up Prices On The Apple Store
In fact, this has been possible for some time on the Apple App Store but not too many people know about this.
Back in June 2013, Apple quietly introduced 5 more pricing tiers that just do that. Alternate Tier 1 is one of them. This tier is still $US 0.99 in the US but now the price in the UK is £0.99, the price in the Euro zone is €0.99 and in Australia $AU 1.99. Not all countries will have a rounded price but some of the major ones do.
The good thing is that switching from Tier 1 to Alternate Tier 1 allows you to stay within the same price range while generating a more revenue outside of the US.
Not bad isn’t it?
What if your app is currently using Tier 2 and is sold for $US 1.99 in the US and not $US 0.99? Then you can use the Alternate Tier 2. There are actually 5 Alternate Tiers (1 through 5) which cover the prices $US 0.99 to $US 4.99.
Selecting those alternate tiers in the Apple app store is easy and quick. To do so, open iTunes Connect, select the app you want to change the price for and select the “Price Tier” drop down like on the scree below:
Then go at the bottom of the drop down list to find the alternate tiers (yes, they are well hidden).
Below I selected the Alternate Tier 1 and you can see in green that the US and Canada prices are still the same ($0.99) but the UK and European Union prices increased (£0.99 and €0.99 respectively). Prices for other countries have changed too.
Note, that this works for the app price but for the in-app purchase price also.
How To Do The Same On Google Play and Amazon Stores
Google Play and Amazon Stores actually give you even more flexibility than the Apple store in regards to pricing. Both of them let you overwrite prices for each country so you can adjust the prices the way you want them.
On Google Play console for example, you can first enter $0.99 for the US price and use the “Auto Convert” button to let Google calculate the equivalent amount in each currency. Next you can overwrite the price for each country and enter €0.99 instead of €0.89 for European countries. It’s a bit tedious but worth it on the long run.
Below is a screenshot of the pricing module in the Google Play Console. In the red rectangle is where you can change the price.