#66: Pricing for Features
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Hello and welcome to Developing Perspective. Developing Perspective is a podcast discussing
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news of note in iOS development, Apple, and the like. I'm your host, David Smith. I'm
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an independent iOS developer based in Herne, Virginia. This is show number 66, and today
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is Wednesday, July 18th. Developing Perspective is never longer than 15 minutes, so let's
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get started.
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So first, I have a couple of, I guess, sort of housekeeping or more logistical matters,
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just to kind of mention.
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First is I'm going to do a survey that's a little bit even
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perhaps overwrought to call it a survey.
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I have two questions that I'd love to hear back
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from my listeners as I'm kind of doing a few things, kind of thinking
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about the future of developing perspective, where it's going to go,
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and kind of how people get it.
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And specifically, it's really just two things.
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One, how often would you like episodes to come out?
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So it's like, is it once a week, twice a week, three times a week,
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four times a week, or you don't care?
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And really what I'm asking for that is right now I just kind of do it
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a couple of times a week.
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Sometimes it's once, sometimes it's three or four times, I think.
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And part of my goal is that it's something
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that's a constant part of the discussion between you, the audience, and me.
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So it's something that I'm doing on a very regular basis.
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But obviously what I don't want it to do is for it to become, I don't know, sort of overburdening
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in terms of like, for it to feel like, "Oh my goodness, there's, you know, dozens and
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dozens of developing perspective episodes.
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I'm never going to catch up."
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And then you stop listening and that's not cool.
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So it's kind of just, what would be that threshold for you?
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What would you like to hear?
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Is it, you know, once a week, twice a week, three times a week, four times a week?
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I don't think I can do more than four times a week, so that's where I'm capping it.
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or if you just don't care, just put that too.
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And then related to that, I've been thinking about whether it would be good or not for
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the show to be published, not necessarily recorded, but published on a regular schedule,
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and if that's something that people would care about or not.
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And by that I mean, say for example, I get a lot of feedback and it ends up looking like
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it would be best if I did say two episodes a week.
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And I'm like, "Okay, well I'm going to do those episodes on Tuesdays and Thursdays."
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and that's just sort of when they get released
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and and they have made a recording of site for times but that's kind of a
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schedule that you can rely on a friend in three episodes week like they're
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monday's wednesday and friday
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uh... there are there if that just doesn't matter if like the red way
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they're doing it right now where they just kind of
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you know they disappear
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uh... yes as you want
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if that if that works then great if not then
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you know just let me know and some basically if it could be very helpful for
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if you hear this to just uh...
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quickly take the survey like that's two questions should take no more than about
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ten seconds to do
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uh... and pieces we get it
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is to just go to developing perspective dot com slash survey
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or the loss of the link in the show notes for this uh... this episode that
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they had just developing perspective dot com slash survey should take ten seconds
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and it is the helpful for me to get a sense of it for cells a call is ask
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you know, reply to me on Twitter or something, but that's going to be hard to manage.
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So that's why I just have this, you know, ridiculously simple survey.
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It really would be a big help to me if you just kind of said, answer those two questions
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to help me kind of, you know, form and mold the show to be best for you guys.
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All right, second thing I have is a correction.
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So in yesterday, in the last show, I talked about the Edge Cases podcast.
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And in it, I accidentally and brutally mispronounced Wolf's name.
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It is Wolf Wrench, not Wolf Resnick, and I'm not really sure where that came from, but
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apologies to Wolf.
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And it is Wolf Wrench.
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And again, I can just mention the show.
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It's the Edge Cases podcast.
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You can find it all over the place.
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It's a great show.
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And my apologies for the brutal mispronunciation, and thanks to Neylan for pointing that out.
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The next thing I was going to mention is I've been thinking about doing a new icon for developing
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perspective, commissioning a designer to come up with a new logo treatment for it.
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Just the one I have in there now is about a year old.
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I did it myself in 10 minutes in Photoshop.
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It's just a picture of a cup of coffee with developing perspective written on it.
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And that's OK.
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But I feel like at this point, this show is something that I think has longevity and staying
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power and I'm going to expect to just keep doing it.
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And so I wanted to make sure it has a nice face to put forward.
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And so I'm thinking of doing an icon.
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And the reason I mention that here is not as a call for spec work or something,
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but if you're a designer who enjoys the show and likes the show
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and does freelance graphic design and logo design
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and has a good portfolio that I can look at and so on,
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please reach out to me either on twitter
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uh... i'm underscored it's not fair
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or if you go to david's david dash smith dot com slash about you can get my email
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address there
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uh... man i'd just you know there's part of the district would love for it to be
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uh... for for the logo treatment to come from a listener
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i would just be awesome and so that i mentioned here
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they said it's not like a alone with the president of some of the committee free
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be a look into do not pay you normal rate and so on
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uh... and you have looked for yourself with your portfolio but it's just the
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best way for me i think to get a lead would be to look at
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yes it's true of my audience see if there's anybody out there
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you know from who would like to do who would like to do a logo treatment for
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and answer start from there
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all right so the topic
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uh... for today show
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uh... it kak sheik comes from a question from nailing beyond where
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and this is related to what i was talking about a couple of episodes ago
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where i was talking about
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core data sinking and this is specifically episode sixty four footnotes
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on side projects and i cloud data sink alab link in the show notes if you want
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uh... listen to that
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but basically it was a question of
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yes if i'm thinking about
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uh... data sink in applications and how i should do it and what that would look
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uh... he has the question
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if i was to use some of these hosted services like some period math parses
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uh... what i do in that purchase to cover the fee
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uh... and would that be service subscription with that the one-time
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it's interesting and i think it's a really good question and that's i think
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well so that will be unpacking for the rest of the show
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uh... and so
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the it more interesting part of that to me
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how you price the app itself
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uh... so right now that i'm talking about doing this to is my recipe book
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which is a recipe book manager you know you enter your recipes and organizes
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imagines of them for you
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and my recipe book right now is an iPad only application
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and I have an iPhone version that's like ninety nine percent done, I'm mostly just
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waiting on sync for it to be done
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and so I guess it's not ninety nine percent done
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the functionality of that application is mostly there except for sync
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and I'm also going to be working on a Mac client for it
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and the interesting question I've been stuck with for a little bit was
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as I've been working on this iPhone version of it is the classic
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question of should I make it
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a universal app which is essentially giving the iPhone version to all of my existing customers
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for free, or should I make it a separate purchase and then, for example, charge for sync as
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just an in-app purchase? So you would give it away for free to everybody if it was universal,
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then you'd pay me a couple of bucks or whatever to then support the sync and infrastructure
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back and forth.
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It's a tricky question because on the one hand, making it a universal app is great for
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customers in the sense that it's nice and simple, it's nice and straightforward in terms
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of what it does and how it works.
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They just buy one thing and if they've bought it before then they have it and it just works.
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works, and that's great. If I do separate apps, I have the advantage then of probably
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making a little bit more money, or at least initially making some more money, by being
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able to capitalize my existing user base, many of whom may have iPhones or iPod Touches,
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and I can then get whatever, a buck or two from them additionally, which would be great.
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And it's a funny thing, though, because ultimately, the app has been reasonably successful, but
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it has only been bought by a minute fraction of iOS people, of customers who have iPhones
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And so the biggest source of revenue that I can get, more likely than not, is to continue
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to grow my user base.
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And so my gut says, what I need to do
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is do things that will make people happy, rather than doing
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things that may necessarily have short-term financial benefit.
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That if I can continue to have--
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I think MyRCTBook is actually-- I mean, it's one of the things
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that I'm most proud of, is that it consistently
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has a five-star rating in the App Store, which is not
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necessarily an easy thing.
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But people love the app, and they love to use it.
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And what I don't want to do is for people to all of a sudden feel like,
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I don't know, that's--
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you know, it's like, oh, you mean I have to pay again
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if I want to use it on my iPhone?
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That's lame.
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Like, versus one day just showing up and saying, hey,
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the app is now universal.
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You can use it on your iPhone if you have one.
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And so, you know, that's great.
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But then it gets to the question of, to would I charge for sync?
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And I'm not sure.
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the tricky part is you can't ever-- it never really works to sync or to give something
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away for free and then to change your mind and charge for it. And so the challenge, of
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course, with sync is there's a certain per user cost if I'm going with an external service,
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which I'm pretty sure I'm going to for at least a lot of the sync stuff. And so I can
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sort of just absorb that into the price of the application, which is great, one way to
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do it, or I can charge for it, say as an in-app purchase or something like that, and that
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sort of gets around it. But I'm still kind of stuck because there's such this part of
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me that, and I wish it wasn't the case in some ways, but there's this power in the App
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Store that I've experienced many, many times that if you create a value that's not going
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a high sort of incredible value proposition for customers,
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you are very well rewarded for that.
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And by that I mean if you make an excellent app
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and charge a relatively low price for it,
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do you-- I mean, it's like the way of finding
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if you make it up in volume.
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It's like, you do.
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And moreover than that, it's just that you're pricing
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and you're expanding the proportion of the market that
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is willing to pay for your application.
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And that is, I think, a very powerful tool.
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It's not necessarily that by charging less for your application
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that you're getting less money from the same people is one way to think about it.
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But if you could declare classic microeconomics, by lowering your price,
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you're expanding your market.
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And the app store's market is so large, and the environment for software
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development is so competitive that ultimately that's usually
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where you want to be. And you know, there's a lot of debate on
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that. And you're just like, but ultimately, that's, you know,
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it's like, Oh, it's the race to the bottom, and it's killing
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developers. And it's like, the ultimate challenge is, I think a
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lot of developers have an overblown perception of the
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value of their software. And by that, I mean that as the as I
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And this is, again, sort of a classic microeconomics.
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But the price of something will likely ultimately
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reach the marginal cost to produce that item.
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And in software, the marginal costs are incredibly low.
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And a marginal cost, if you're not familiar with it,
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is essentially, what is the cost to produce
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one more of that thing?
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And so in software, conceptually,
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your marginal cost of adding one more
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user to your application is sort of some aggregate of the support
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costs for them, any bandwidth or server infrastructure costs,
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those types of things, which are typically fairly low.
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And so that'll naturally drive the price down.
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And especially in a market like the App Store,
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where there is nothing to prevent competitors copying,
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coming in, building almost exactly or exactly the same application
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that you did, there are things that perhaps they can't do.
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from a copyright perspective, that if you created an application with exactly the same
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logo and UI, you'd have a copyright claim against them.
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But ultimately, you're in a very, very free and competitive market.
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And this is just sort of classic capitalism, that that will naturally drive down prices.
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And rather than fighting that, I tend to just embrace that and have relatively low prices
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that have thus far had relatively high volumes.
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And so that's kind of where I've been playing.
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And I think that's likely where I'm going.
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And my hope, I think, is likely that I'll
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be able to offer sync, make the app universal,
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and see if that makes people happy.
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And I hope it does.
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It may not be able to, but I have
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to finish crunching the numbers to make sure
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that I'm not totally shooting myself in the foot.
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But that's kind of where I'm leading.
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Or at least that's where I'm starting.
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And then as I head forward into that,
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I'm going to see if that makes sense.
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And if not, where can I pull back from that?
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Anyway, that will at least annoy my users and best just
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make passionate customers who love and recommend
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my app to everybody.
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So anyway, that's it for today's show.
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If you have any thoughts on that, please let me know.
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I'm on Twitter @_davidsmith.
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The Twitter feed for this show is devperspective.
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And that's where you can get updates
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whenever new shows are linked.
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As a quick reminder, I'd love it if you could take that survey,
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developingperspective.com/survey.
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It should take about five seconds.
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But otherwise, I hope you have a good week, and happy coding.