New pricing strategy for apps going strong

Developers around the world adopt pricing model 'Fans in charge'

03 JULY 2013, AMSTERDAM, NETHERLANDS
Summary
On June 27th a Dutch app developer launched a radical new pricing strategy for apps. They call the pricing model 'Fans in charge'. Free for anyone to adopt. Innovatio claims to be on a mission to heal the global app economy. A bit ambitious and crazy, but worth the risk. In a nutshell it comes down to this: An app gets more expensive everyday until a day comes by where the app is sold zero times. When that moment arrives, fans & early adopters get to decide on the final price tag of the app.

The motivation

Innovatio started the experiment because the company believes that the current app economy is sick and needs to be healed. Apps are pretty cheap, compared to other products in our daily lives, according to Innovatio. People happily pay $7 or more for a movie ticket, but find apps over $5 to be ‘unreal’.

The experiment

Last Thursday Innovatio launched a public transport app for the Dutch: SnelTrein. It’s a very cool and smart product that works really well. But that’s not the point. It’s the first app that uses this new pricing strategy. The app started at $0,99 and went up in price every day. It now costs $7,99 and is still selling. The developer is now waiting for a day with zero sales. When that moment arrives, fans & early adopters get to vote on the final price tag.

Early results

Although the amount of sales and revenue dropped as the price rose, it looks like revenue is bottoming out and is starting to rise. The big question is: How long will it take till a price is reached where people stop buying the app? Early results are plotted in a chart. (see attachments).

Pricing strategy gets adopted worldwide

Innovatio published the radical pricing strategy on TNW market. For free. So far 35 companies and developers have claimed the new pricing strategy for apps.

Quotes
"Al" The people who are crazy enough to think they can heal the global app economy..
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About Innovatio

Innovatio is a developer of iPhone and iPad apps based in The Netherlands. The game “Achtung” was their first iPad app and is being played in more than 70 countries worldwide. Innovatio developed “Taxi Hold’em” in 2008, a gimmick app for getting a cab on crowded streets. In 2009 Innovatio launched the app “Aanbieding”, a supermarket-discount app for the Dutch market. It was the the nr. 1 paid app for a few months in The Netherlands.

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