💰New pricing structure
by Oliver SchmidtIn the last months i faced a problem. 50% of the downloads of my apps come from less developed countries like Russia, Brazil, and generally regions like South America and Eastern Europe. However, 99% of InApp purchases come from Germany and the USA.
I thought about why this is so and came to the conclusion that the prices for these regions are too high. I come from Germany and have calculated the prices so that they are fair in Germany. But someone in Russia or Brazil has a much lower income.
I have taken my previous prices and reduced them by 40-50% for less developed regions. I use Firebase RemoteConfig to offer different prices in the respective regions.
Example:
12 month subscription in Germany: 6,99 Dollar (599 Ruble)
12 month subscription in Rusia: 3,99 Dollar (349 Ruble)
And guess what?
I had my first InApp purchase from Russia today! No one from Russia had ever bought the App before! :)
What do you think about this strategy? Do you have different prices for different regions?
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I am originally from Russia. Also I was working with guys who have an app with more than 10 million downloads. I would say price with 700 rubles for 12 month is feasible. However I would recommend you to pay attention to localisation. To get more revenue your app should look like it wa created by native speakers. We were developing many apps and when we wanted to attract Russian speaking countries I would say that the localisation counts.
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I do agree with the previous comment. The price was just right already. Your conclusion is barely valid due to little statistics.
I'd also consider a price option for lifetime usage. -
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Thanks :) I will add more languages in the future. Currently the app is available in German, English, Spanish, Portuguese, French and Russian. I will also have the existing translations checked again.
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Hi Oliver,
I agree with you about localized prices. I live in Brazil and would say that Brazilians don't spend much money on in-app signatures. The number of in-app purchases in Brazil is generally lower compared to other countries (USA, Germany, and many others). I know that this pattern is not the same when we talk about mobile games, where the market is massive.
I think that is more of a cultural thing, at least here in my country.
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Yes, I think the cultural aspect must also be taken into account here. The price reduction may allow me to increase InApp purchases in countries like Brazil, but I probably won't reach the same level as in Germany.
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even Netflix and Apple apply the same rule actually.. For instance for years, Apple single song purchase prices were around 1.99 USD for USA and 1.99 TL for Turkey which was around 0,56 USD at that time..
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I actually switched my payment provider from Gumroad to Paddle because Paddle offers localized pricing while Gumroad does not.
I always kept trying different pricing structures (lifetime, monthly recurring, yearly, vat inclusive/exclusive, etc.), I am still not sure what the best solution is but I do feel better providing localized and VAT-inclusive pricing.
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I also think the best way is just to try different options.
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Hi Oliver, congrats to your milestone, especially fro a different country. Do you also have a website actually for your app?