I'm sorry to say this - but the article tells little or nothing about the 'how' of pricing. Picking a random price point and experimenting with that won't work. Here are the issues:
1. The customers who you ask initially need not represent the buying majority. How do you select the set of people who represent the majority segments of your user base in order to determine pricing ?
2. In the first version of your product, how can you distinguish the issues the customers have with pricing v/s product features. As it is, mobile analytics is in such infancy. I can't even figure out my user base demographics. 'Asia' is not the demographic I'm looking for.
2. Even Apple faltered with pricing when they announced a steep price cut to the original iPhone but that's Apple, not a no-name startup. If a no-name startup pisses customers off by changing the pricing, then what's the backup plan.
Pricing, especially for consumer apps is a pretty complicated issue and not as simple as the author makes it sound like.
1. The customers who you ask initially need not represent the buying majority. How do you select the set of people who represent the majority segments of your user base in order to determine pricing ? 2. In the first version of your product, how can you distinguish the issues the customers have with pricing v/s product features. As it is, mobile analytics is in such infancy. I can't even figure out my user base demographics. 'Asia' is not the demographic I'm looking for. 2. Even Apple faltered with pricing when they announced a steep price cut to the original iPhone but that's Apple, not a no-name startup. If a no-name startup pisses customers off by changing the pricing, then what's the backup plan.
Pricing, especially for consumer apps is a pretty complicated issue and not as simple as the author makes it sound like.