For all the developers of iPhone applications, pricing always poses as a major problem. While at times most of the developers price their product too low in a bid to cut competition, other times the pricing becomes too high for the customers to buy!

More often than not, understanding the equation between ‘low volume-high price’ and ‘high volume-low price’ become difficult to understand. Unless you set the price right, it becomes difficult to earn the expected amount of revenue from it. For example, if you have set .99 as the price of your application assuming that there is no other application modeled along the lines of your concept, buyers might find it overpriced if they discover a similar app elsewhere.

Therefore, remember that monopoly never lasts in technological field. Someone somewhere is sure to copy your idea and develop an application similar to yours, with added incentives. Hence, a price pressure comes upon you. In such a situation, it always helps to know certain parameters that can make up for an effective pricing method of an iPhone application.

The first issue to consider is “competition”. By keeping the dilemma of competition in mind, you need to set your price in such a manner so as to beat most of your competition. For example, if a competitor has placed as the price of the product, you set to overtake the competition and attract customers to your application. However keep in mind that some new developer can come up with a cheaper price as well. Besides, if there are applications that have created a niche in the market, you can use their reviews and customer reactions to set the price of your product. Hence, the experience gained by your competitor helps you in your bid to market your product.

If you have better features than the product offered by the competitor, pricing your product the same or maybe slightly more than the competition will prove to be quite beneficial! Try to use it carefully though.

The next in cue comes the “opinion offered by the market experts”. Sometimes, you can take the advice of the market experts, developers and forums for the ideal pricing. It is generally expected for a new product to have its pricing done between and . It has also been experienced that most people feel that mobile-based applications or iPhone applications should cost lesser than those meant for personal computers. Whatever the reason or sentiment may be, keeping these factors in mind will always help when deciding on the pricing of your iPhone application.

There are also certain apps that work if the price is low at the time of the launch. This works in attracting new clients and customers. Once the database brows, increase in the price will not affect the already grown vast database of the application. Estimating the number of copies that can be sold of the application, charting out a price in accordance to the time spent also helps getting the right revenues out of the hard work put in developing the application.

Simply following the above mentioned modules will help you price your product effectively, while attracting more customers altogether.