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What is more important to you: 1. Selling "Lots of Cheaper Apps" OR "Fewer more Expensive Apps"?

EricEdgeEricEdge Lounge Lizzard Supreme Posts: 274
edited October 2012 in Sell
How you position yourself in business is important. It could mean success or failure. How do you position yourself as an App Maker/seller matters.

Are you of the opinion.....
1. to sell lot's of CHEAPER Apps is the best option and why?
2. OR to sell FEWER more EXPENSIVE Apps is a better option and why?

Comments

  • Terry TrainerTerry Trainer Lounge Lizzard Posts: 198
    Any App HAS to be kept fresh and up to date
    ( my heart sinks when I do a search and get results on a website that hasn't been updated for 10 years)
    If you create a cheap App, the customer will not appreciate being charged maintenance which will often be more than the original creation cost.
    And after all we get a great bargain with AppCat compared to what other people charge
    (like $80 per month per application!)

    When you consider setting up a system, add up the cost of selling AND the cost of not selling, then the cost of maintaining, together with visits on a regular basis, it keeps mounting up.
    The costs of selling is always under appreciated.

    My vote therefore goes to the fewer and more expensive option. ( sorry for taking so long to give a decision :) )

    NEXT QUESTION is what is the definition of "expensive", I haven't any experience in this area yet.
  • EricEdgeEricEdge Lounge Lizzard Supreme Posts: 274
    Hello Terry, I always appreciate it when a person takes time to consider important issues - like this.

    Selling FEWER more EXPENSIVE Apps are a better option in my opinion because of the perceived value an App carries at this time in it's evolution.

    A good exercise for you is to research the local market for other competitors and what they are offering and charging.

    For a hypothetical example, the cost of having an App designed and created starts at $20,000 for an iPhone and another $20,000 for the Android market. Total investment $40,000 and the App would not be as good as ours.

    Our Apps are a once only investment that works on all devices. So if your target-market is small businesses, it would make sense to be reasonably price OR the potential client will think you're offering an inferior product.

    The choice is yours what you charge. But don't be cheap - you will do a disservice to you and your client.

    Hope this helps, Eric
  • joemadden1941joemadden1941 Lounge Lizzard Posts: 110
    Can anybody with no programing experience buy an AppCat download ID and begin selling Quality apps to discriminating prospects at top shelf prices? I don't think so. You have to pay your dues as with anything else. Lets face it, you need them more than they need you. They have to become your references. Would you walk onto a prestige Rolls Royce dealer and say I know you expect the best for your money and I am. I make Smartphone apps and your business needs me. Then you snap nine pictures of his Store-Front a couple of Bentleys and a Silver Ghost, add the phone number and address. Then copy and paste some text form the Rolls webpage and say, I know you expect perfection and thats just what I deliver. Where do I pickup my $5000 check? And, Oh Yes, when I have had a little time to build my business I'll be back for that red Ghost in the corner.
  • anselmoanselmo Gawker Posts: 112
    @eric edge $ 20,000 for an iphone app????? Can you please tell us where do you live????
  • EricEdgeEricEdge Lounge Lizzard Supreme Posts: 274
    edited October 2012
    Australia. (They make out they have to pay importation costs lol.)

    When something is new (like Apps) people take advantage of people ignorance - like what happened when websites were new - people charged thousands at first and when people wised up the prices came crashing down. That's what is happening here.

    I personally like to provide a sensible package of App, Training & Support for the client and as a result business is flowing in.
  • EricEdgeEricEdge Lounge Lizzard Supreme Posts: 274
    Hey @joemadden1941, you see, impressive as it is I would never do a live example of creating an App in front of a business MAINLY because they aren't able to update their App the same way I demonstrated - which for me would be misleading even though it's not intentional.

    I have a completely different mindset, I believe they do need me more than I need them and that changes everything in how I approach my business and the service I offer.

    May I say, there is no RIGHT or WRONG.... it's experience and mindset the make the difference in our outcome. BE THE PROFESSIONAL - NOT there employee!
  • ToddGoldsteinToddGoldstein Bouncer, Bar Keep Posts: 695
    @anselmo, This blog post reports on average investments for app creation: $27000: Blog.
    It's sourced from this 2012 economics study.
    What @EricEdge is referring to is the "perceived baseline". The cost that people expect to pay for a multi platform app based on what it actually costs on average (or did in the past).
    It's not suggested you charge anything near this amount but it's a very good idea to print out that report and let your potential client know what it would usually cost to make an app. "Priming" is invaluable in a "new" industry because a client might simply not know at all what something is worth and he'll love you for offering a smarter, quicker, and cheaper option.
  • EricEdgeEricEdge Lounge Lizzard Supreme Posts: 274
    Absolutely right @ToddGoldstein. I certainly don't suggest you charge $20,000+ for an App. In fact far less. However, I believe it is very important to inform the potential client of what is happening in the industry.

    When starting in the App making business I conducted much research in order to position myself with confidence. That being said, I'm able to share with a client my findings - WITHOUT MISLEADING THEM. And as a result, attract much trust and business.

    As I have said before, clients are looking for leadership, knowledge and confidence from a supplier and then follows the product and performance.
  • SarahSkinnyGoldSarahSkinnyGold Cigarette Girl Posts: 99
    Agree with @ToddGoldstein. Folks have no idea what an app should cost. It's like that for any new product.
    Presenting them with studies and average prices helps them understand why my services are quite "sensational".
  • anselmoanselmo Gawker Posts: 112
    I think I'm the only one to prefer to sell lot's of CHEAPER Apps . Please see also http://lounge.app.cat/discussion/27/make-the-customer-editing-his-app#latest
  • CamillaCamilla Bar Keep Posts: 9
    When we do trade shows to sell App.Cat Studio we get so many responses from , "wow, that is really affordable!" to "wow, that's expensive" all in the same show. (until we show the competition of course, then we will them over) We even have had attendees that already had an app with a competitor buy App.Cat and cancel their recurring fee app maker.

    So many demographics can determine what makes an app worth buying to someone so just experiment. I'm sure even a particular geographical region may warrant what someone will pay for an app which may be what @anselmo is experiencing. But if you compare your prices to the competition I bet you are still a more affordable solution, especially since we do not charge recurring fees
  • EricEdgeEricEdge Lounge Lizzard Supreme Posts: 274
    Hi Claudia "Moonshine" Bowminster, Your absolutely right.

    That's why I teach about knowing your product App.Cat and position yourself as the expert and everyone will fall in love with you.

    See my comment that further discusses this concept in more details at http://lounge.app.cat/discussion/27/make-the-customer-editing-his-app#latest

    Have a tremendous day, <>< Eric
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