How do I set pricing and begin to monetize our new app for young kids?
Our app, Up In The Sky, was recently approved by Apple and is in the Apple Store. It's an illustrated/animated musical rendering of all things found up in the sky. Where can my team begin in setting a fair price that allows us to monetize off our product?
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Make it very cheap...if kids can buy it without a blink and the app is attractive, it will just roll through word of mouth. Having said that, it is also a function of your staying power. if you need an early breakeven, you may want to keep it a bit high initially but my recco will be to have no lost opportunity because of price.
Monetization can be done in different ways. You can monetize by keeping the app free but having affilate programs run around it. Or, you can initially begin with a limited version with a very low price. This should help you test the waters and then you can raise the cost with additional features incorporated. Check on ads - another good way to keep the meter running.
The current model is: free app with in-app purchase. That is probably a bad model for you because your market is young children. I would look at popular apps which are similar and see what they can charge.
Invite parents to try it...focus on the educational part of it.. we are parents, and with young kids we are concern in their educational foundation first that entertainment. Mix both carefully and create a survey to those who responded to you and ask them which price will they be able to pay to receive what?
It may help a lot. Trial and error is valid.
Thanks to all for your well expressed, thoughtful, advice and comments. Much appreciated.
Do a thorough cost analysis, know your out of pocket costs, fixed costs, add enough for you all to be paid and add a profit...Then see if the market can bear your price and see where you sit in relation to your competition...
Utilize the old Practical Accounting Principle, "Cover Your Nut," which insures that your revenue (your Cover) is sufficient to cover your expenses (your Nut). Create a worksheet listed all of your revenue sources and your expenses; calculate your Break-Even Point and price your app accordingly. I have written a accounting book that explains Practical Accounting to non-accountant owners/managers. Included in the book is several Break-Even examples. "Cover Your Nut" is available on Amazon with RG Bud Phelps listed as the author.
Check your competition and do it differently i would suggest. Doing the same as them doesn't make the APP very special. Subscription plans might work for extra features that people can subscribe to or purchase. However as it is kids, this might be a difficult option. Another option might be to get schools or kids organisations or charities who help you on the marketing of the app with their look and feel, name, and other things for which they pay. Also possible that they purchase a bulk account for the kids to use during the year. Hope this helps.
My parents are taking care of my sister's kids and they have apps and youTube too. Soon, we end up buying merchandise for these apps and vids. She has a Peppa Pig T-shirt and Frozen dolls. One of the ways to monetise is to make their experience more real, I guess.