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I'm contemplating pricing for my product. It is an internet based game that is sold via subscription. I planned on a price point of $1/month. I can process a credit card subscription for about 3% (figuring a year's subscription), but the lure of in-app purchases on Apple iOS devices is compelling, but the 30% cut is a bit unpalatable.

Apple has loosened its in-app purchase policy. I'm now allowed to sell subscriptions in-app and on my website at different prices.

If I do this, say offer the game at $1.50/month (net to me, $1.05) via in-app purchase and $1/month on my website (net to me $0.97) will I have customer backlash even if I both explain the higher prices are due to Apple's excessive fees and offer to drop them if Apple drops their fees?

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1 Answer

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Why not have the best of both worlds? Offer in-app subscriptions at $1.50 per month and yearly subscriptions via the website at $12. Don't offer annual subscriptions in-app.

This way customers don't see any price differences between the website and the app. All they see is that a month by month subscription is $1.50 and that you offer a better price for an annual subscription on the website.

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2  
ooooo, I like the way you think! – Paul Cezanne Feb 15 '12 at 22:04
+1 for the way you think from me too. Great! – Herr K Feb 22 '12 at 13:55

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