Step 4: Spot-test price changes After I’ve identified markets that might benefit from differentiated pricing, I use Dev Center to experiment with pricing in those markets.One good way to do this is to set different price points for various markets, test them for a week—to factor in purchases made across all the days of the week—and then evaluate the results.Closely monitor feedback after a pricing change to understand customer response.Using Dev Center reports, developers can monitor sales over time as one way to determine if new pricing is having a negative effect on sales at any point. Let’s say my game Foo is currently priced at .99 in my home market and I’m trying to decide what to charge in other regions.
Furthermore, market-specific pricing applies not only to apps and games, but also to in-app items offered through apps built for Windows Phone 8.Monitoring customer feedback provides valuable information that can be used to fine-tune pricing strategy.There’s a new feature in Dev Center that developers can use to quickly access all app ratings, from all countries or regions (Dev Center All).This allows for calculation of what economists call demand elasticity: the extent to which consumers are price sensitive in specific markets.With this data in hand, developers can better determine the best prices for their apps.
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For another app, I raised the price by the same amount in two countries where download data suggested users found that app especially useful.The results so far are encouraging: no decrease in paid downloads.Share your own tips In the last weeks I’ve been conducting experiments on several of my apps using the new custom pricing option in Dev Center. For example, I bumped up the price for the Spanish-language version of one of my apps by 50 cents in Spanish-speaking markets.The prices I’m considering are $1.49, $2.49, $2.99, and $3.99.
To start, I test each of these prices for seven days in markets I’ve identified as good candidates for differentiated pricing. As expected, the number of paid units goes down as the price goes up.Here is a checklist I go through when trying to assess this for my own apps: Step 1: Understand the competition Investigate how competitors are pricing similar apps, both on Windows Phone and on other platforms.If similar apps are priced at a certain price point in a country or region, it probably won’t be effective to charge a higher price unless the app has features that competitors don’t offer.This same exercise can be applied to other countries or regions.Typically I do this only for markets that have high download numbers and therefore a more significant impact on income from the app.