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Or How I Learned to Stop Worrying and Love Premium

3 pointsby mkoivuniover 13 years ago

1 comment

BrandonMTurnerover 13 years ago
I think people generally just have a really hard time understanding the value of a non physical good.<p>The product I work on has this very problem. We have saved thousands of people's lives with the application we made. Seriously, we get an email every single day where someone explains how they lost 50 or more pounds using the product we make and it took them from being pre-diabetic with high blood pressure to normal insulin levels with normal blood pressure. They have full energy again and are living a wonderful life now. This does feel pretty good when we hear these types of things, however we are a startup and we have investors that want to see a return. If the user does mention money, they always say how happy they are that they would easily pay 99 cents, maybe even all the way to 5 dollars for the app now that they know how good it is. Thats not a good sign for us. We made something that saved their life (maybe forever, maybe they will gain the weight back over months time period) and they value it at the same price as value meal at McDonalds that has a short term (maybe 20 minutes of enjoyment) and has the reverse effect on their life. I don't think the users measure the value the same way because our application is not a physical good. It is assumed by people that apps, software, or websites are little worthless toys that should be free (I don't know how computers came along and all of sudden people didn't want to pay for anything, though I did fall in this trap until I got my degree and worked in the field). I know my mother has this problem as well, the only apps she has ever bought for her iPad is when I bought her a iTunes gift card for her birthday. She loves the apps she paid for more then free ones. Especially, Words with Friends for example, but she has a hard time rationalizing how it is worth ~4 dollars yet has entertained her at least 20 minutes everyday day for the last year, and she hated the advertisements in the free one!
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