#49: Addressing Demand
  
   
 
 
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     Hello and welcome to Developing Perspective. 
     
     
  
 
 
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     Developing Perspective is a podcast discussing iOS development, Apple, and the like. 
     
     
  
 
 
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     I'm your host, David Smith. I'm an independent iOS developer based in Herndon, Virginia. 
     
     
  
 
 
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     Developing Perspective is never longer than 15 minutes and is recorded about three or four times a week. 
     
     
  
 
 
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     This is Show #49. Let's get started. 
     
     
  
 
 
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     All right. I have a couple of small topics to start off today's show with, and then I'll move into the main topic. 
     
     
  
 
 
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     To start with, I was just talking about--I wanted to talk about one of the great features 
     
     
  
 
 
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     and additions to the iOS developer experience that was added in iCloud. 
     
     
  
 
 
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     And it's something that you may not actually have been aware of, 
     
     
  
 
 
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     and so I just wanted to point it out. 
     
     
  
 
 
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     For a long time now, iTunes Connect, which is where you do all of your app management, 
     
     
  
 
 
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     is a portal where you can download crash logs. 
     
     
  
 
 
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     And back in the old days, these were uploaded via iTunes 
     
     
  
 
 
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     when someone synced their device and then hit a button that said, 
     
     
  
 
 
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     said, yes, go ahead and send diagnostic and stability 
     
     
  
 
 
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     reports or something like that. 
     
     
  
 
 
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     And in general, in my experience back in the day, 
     
     
  
 
 
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     that almost never happened. 
     
     
  
 
 
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     Every now and then, you'd get a report in there, 
     
     
  
 
 
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     but you could have millions of downloads and have 10 reports. 
     
     
  
 
 
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     And it just wasn't especially helpful. 
     
     
  
 
 
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     But one of the new things that's kind of fun in iCloud-- 
     
     
  
 
 
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     and this was added in iOS 5-- 
     
     
  
 
 
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     is that now, when the user is setting up their iCloud 
     
     
  
 
 
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     account, one of the little check boxes they push is, you know, "send Apple diagnostic 
     
     
  
 
 
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     information," I think it is. And I think by default it's enabled. And that, if they check 
     
     
  
 
 
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     that, then as best I can understand, crash reports are then sent automatically over the 
     
     
  
 
 
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     air when your app crashes to iTunes Connect. And as a result, I found the crash report 
     
     
  
 
 
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     in iTunes Connect to be so much more valuable. So I definitely recommend if you're, you know, 
     
     
  
 
 
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     sort of getting ready to do an update, looking for some bugs, 
     
     
  
 
 
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     looking for some things that may make your app better, 
     
     
  
 
 
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     that's definitely a place to go. 
     
     
  
 
 
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     And basically, you just go into iTunes Connect. 
     
     
  
 
 
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     You click on the application. 
     
     
  
 
 
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     You click on a particular version, 
     
     
  
 
 
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     because it's been done by version. 
     
     
  
 
 
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     And then over in the top right corner, it says Crash Reports. 
     
     
  
 
 
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     And you just kind of browse there. 
     
     
  
 
 
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     And you can download them. 
     
     
  
 
 
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     And just always, another note is to make sure 
     
     
  
 
 
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     that you always keep the desim file whenever you do a build, 
     
     
  
 
 
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     especially one that you're going to submit to the App Store. 
     
     
  
 
 
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     This is a little debugging symbols file. 
     
     
  
 
 
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     If you just do build in archive, it'll 
     
     
  
 
 
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     be sort of stored automatically. 
     
     
  
 
 
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     But make sure that you keep that somewhere safe, 
     
     
  
 
 
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     because you can't symbolicate your crash reports, 
     
     
  
 
 
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     and they'll be kind of meaningless otherwise 
     
     
  
 
 
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     if you don't have that decent file. 
     
     
  
 
 
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     So just make sure you keep it. 
     
     
  
 
 
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     And then basically, you can just download them, 
     
     
  
 
 
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     and you go into Xcode, and you can 
     
     
  
 
 
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     look through all the crashes. 
     
     
  
 
 
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     It'll just give you stack traces of where the problems are. 
     
     
  
 
 
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     Evaluating stack traces is a bit of a black art. 
     
     
  
 
 
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     sometimes it feels like, because you're-- 
     
     
  
 
 
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     maybe 50% of the time, it's straightforward. 
     
     
  
 
 
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     You look at it, it's a stack trace. 
     
     
  
 
 
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     It tracks back to a line in your code 
     
     
  
 
 
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     where you're doing something silly. 
     
     
  
 
 
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     You're putting a nil object into an array. 
     
     
  
 
 
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     You're doing something that's just clearly not going to work. 
     
     
  
 
 
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     And you see, you can go through and you fix those. 
     
     
  
 
 
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     And then you'll end up with the next case. 
     
     
  
 
 
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     And these are the crashes that you look at, 
     
     
  
 
 
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     and you're like, that's got nothing to do with my code. 
     
     
  
 
 
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     You look through the stack trace, and it's all in UIKit. 
     
     
  
 
 
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     It's all in Foundation. 
     
     
  
 
 
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     And so then you're kind of like, huh, 
     
     
  
 
 
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     is this a bug in the framework? 
     
     
  
 
 
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     Or is this something that I'm causing the framework 
     
     
  
 
 
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     to have a problem? 
     
     
  
 
 
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     And more often than not, it's the latter. 
     
     
  
 
 
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     I very rarely found actual crashes in the OS. 
     
     
  
 
 
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     I'm sure they exist, but nine times out of 10 or 99 times 
     
     
  
 
 
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     out of 100, if you see a crash like that, 
     
     
  
 
 
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     you're doing something sort of wrong with the frameworks. 
     
     
  
 
 
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     And it's likely documented that what you're doing isn't going to work. 
     
     
  
 
 
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     An example of this is, say, where you don't 
     
     
  
 
 
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     set the delegate of something to nil when your object is deallocated. 
     
     
  
 
 
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     Simple example. 
     
     
  
 
 
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     Something like that, where the crash will actually potentially 
     
     
  
 
 
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     happen in their object when they start trying 
     
     
  
 
 
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     to access something in your delegate. 
     
     
  
 
 
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     But you didn't tell them otherwise. 
     
     
  
 
 
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     So that's just something I wanted to-- 
     
     
  
 
 
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     I ran into it yesterday when I was doing a big update, kind of my bug fix 
     
     
  
 
 
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     update for audio books. 
     
     
  
 
 
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     And I noticed that-- 
     
     
  
 
 
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     I was like, oh, you know, I've got these vague crash reports 
     
     
  
 
 
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     from users, and every now and then they'll send in a crash 
     
     
  
 
 
 
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     But I was like, oh, I wonder if iTunes Connect's gotten any 
     
     
  
 
 
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     better, and it definitely has. 
     
     
  
 
 
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     So definitely check that out when you're doing your next 
     
     
  
 
 
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     update, and you may be able to catch and crush a few bugs. 
     
     
  
 
 
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     All right, second thing, and it's kind of vaguely related, 
     
     
  
 
 
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     is a trick that I recently started doing to kind of get a 
     
     
  
 
 
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     sense of how many users are using your application, or 
     
     
  
 
 
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     have your application installed on their phone, if you have an app like 
     
     
  
 
 
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     some of mine that have been around for quite a while, 
     
     
  
 
 
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     it's sometimes a little weird and intimidating to think like, "Well, how many of these 
     
     
  
 
 
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     people are actually using it?" If you say 
     
     
  
 
 
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     you had a million people who download your app, 
     
     
  
 
 
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     is that a million, you know, 
     
     
  
 
 
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     is 999,000 of them still using it, or a thousand of them still using it? 
     
     
  
 
 
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     And it's kind of helpful to judge 
     
     
  
 
 
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     how much time you want to invest in the app, how much time you want to 
     
     
  
 
 
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     sort of put forth, just kind of good for curiosity. And this is actually one of those few things 
     
     
  
 
 
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     where the Android market actually does a really good job of this because they track this for 
     
     
  
 
 
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     you and they'll tell you the number of active installs and things like that. 
     
     
  
 
 
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     But a good proxy that I recently started using to judge roughly how many people have your 
     
     
  
 
 
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     app installed is if you go into your iTunes Connect sales reports, you get sales, you 
     
     
  
 
 
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     get in-app purchases, you get free downloads, and then you get updates. For a long time 
     
     
  
 
 
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     I thought updates was just kind of useless. 
     
     
  
 
 
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     You know, Apple's just throwing this number at you that seems kind of arbitrary. 
     
     
  
 
 
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     It's the number of people who installed an update for the application the day before. 
     
     
  
 
 
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     And I was like, "What am I going to do with that?" 
     
     
  
 
 
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     Now what I kind of view that as is I take, when I submit an update, 
     
     
  
 
 
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     I take a look at say roughly say a week's window of updates after I do, 
     
     
  
 
 
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     you know, after my point release is approved. 
     
     
  
 
 
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     I look at that and I say, "Huh. 
     
     
  
 
 
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     what amount, what proportion of my users updated. 
     
     
  
 
 
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     And that's probably a reasonable proxy for how many users still have your app installed 
     
     
  
 
 
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     on the phone. 
     
     
  
 
 
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     It doesn't mean that they're actually using it, they could just be hitting update all, 
     
     
  
 
 
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     but it's probably a reasonable proxy for that's how many people have it on their device. 
     
     
  
 
 
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     So I just kind of wanted to throw that out there. 
     
     
  
 
 
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     I think it's kind of an interesting statistic. 
     
     
  
 
 
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     All right, and so now I'm going to move into kind of the main topic for today's show, which 
     
     
  
 
 
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     is specifically about pricing. 
     
     
  
 
 
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     And this is motivated by just a refrain I've heard quite a few times recently. 
     
     
  
 
 
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     A lot of it's by sort of older, old is probably the wrong word, but people who've been making 
     
     
  
 
 
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     software before the App Store, people who used to make their living selling software 
     
     
  
 
 
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     directly or those types of situations who complain about pricing in the App Store. 
     
     
  
 
 
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     And it's one of these funny things that I kind of, you know, it's just a topic that's 
     
     
  
 
 
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     been talked about a lot and I don't want to belabor it too much, but I have kind of an 
     
     
  
 
 
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     interesting perspective that I hopefully, well I hope it's interesting, is a lot of 
     
     
  
 
 
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     people I think sort of confuse two uses in the English language of the word "value." 
     
     
  
 
 
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     Saying, "Oh man, it's the race to the bottom, devalues my software." 
     
     
  
 
 
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     And it's one of those awkward things where, just kind of like with "free" in the English 
     
     
  
 
 
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     language, there's "free" as in "beer" and "free" as in "liberty." 
     
     
  
 
 
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     the same word has two very different meanings. And you can take value as sort of the intrinsic 
     
     
  
 
 
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     value, the worth, the excellence, all those other kind of attributes of it that kind of 
     
     
  
 
 
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     make it awesome. And on the flip side, value is also like a business term that's a measure 
     
     
  
 
 
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     of sort of revenue, of income, of money, of what the sale price for something is, if you 
     
     
  
 
 
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     were to look at it as the value of a house. 
     
     
  
 
 
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     And I think often those two terms get conflated in a way 
     
     
  
 
 
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     that's not productive, that a lot of people say, well, if I 
     
     
  
 
 
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     make the price of my app low, I will devalue it. 
     
     
  
 
 
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     Now what they're really saying is by lowering the price, they 
     
     
  
 
 
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     may lower a potential customer's perception of the 
     
     
  
 
 
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     quality of their software. 
     
     
  
 
 
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     So that's a fair statement, and that may be true. 
     
     
  
 
 
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     That's certainly another interesting part of it. 
     
     
  
 
 
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     But I think often what they say, when they say that, what they mean 
     
     
  
 
 
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     is, if I lower my price, I will make it seem cheap, and I won't make money. 
     
     
  
 
 
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     And it's a funny thing. 
     
     
  
 
 
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     You can look at it a couple of different ways. 
     
     
  
 
 
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     You could say, well, I want to make as much money as I can, 
     
     
  
 
 
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     which is a perfectly reasonable, good capitalistic approach 
     
     
  
 
 
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     to selling software. 
     
     
  
 
 
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     And if that's the case, it seems like really at the App Store 
     
     
  
 
 
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     right now, especially on the iOS side, the best way to do 
     
     
  
 
 
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     that is with a relatively low price, potentially even free, 
     
     
  
 
 
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     and supplementing that with in-app purchase. 
     
     
  
 
 
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     It allows you to address quite well the demand curve for your 
     
     
  
 
 
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     application. 
     
     
  
 
 
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     There are some people for whom the value or the price at 
     
     
  
 
 
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     which they are willing to pay for your app is either zero or 
     
     
  
 
 
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     close to zero. 
     
     
  
 
 
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     And then you have this whole curve of people who, with 
     
     
  
 
 
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     increasing amounts of a desire to part with their money. 
     
     
  
 
 
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     And you can address that all within that purchase. 
     
     
  
 
 
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     So there are some people who are going to have paid you $100, 
     
     
  
 
 
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     or $20, or $30. 
     
     
  
 
 
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     And then you have some people who 
     
     
  
 
 
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     are going to have paid you nothing 
     
     
  
 
 
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     and just looked at a few ads. 
     
     
  
 
 
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     By addressing that whole curve, you just-- it's like calculus. 
     
     
  
 
 
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     You've maximized the value or the revenue 
     
     
  
 
 
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     that you've received. 
     
     
  
 
 
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     And so in many ways, that's the way forward. 
     
     
  
 
 
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     But often you kind of have this... the flip side of that is people will say, 
     
     
  
 
 
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     "Well, I don't want... 
     
     
  
 
 
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     I want my software to cost ten dollars. I want my software to cost five dollars. 
     
     
  
 
 
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     I want to be, you know, 
     
     
  
 
 
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     viewed as a premium brand in the App Store." 
     
     
  
 
 
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     And, you know, it's 
     
     
  
 
 
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     certainly a worthwhile thing, you know, to say that about yourself, 
     
     
  
 
 
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     or to say that about kind of what kind of an app 
     
     
  
 
 
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     or brand you'd like to be. 
     
     
  
 
 
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     But I think... and that's great, 
     
     
  
 
 
	 00:10:23
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     but I think I always get a little frustrated when the flip side of that is 
     
     
  
 
 
	 00:10:26
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     I'm having difficulty making money 
     
     
  
 
 
	 00:10:28
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     as a premium brand. 
     
     
  
 
 
	 00:10:30
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     You know, no one really care, like no one would care if Tiffany's 
     
     
  
 
 
	 00:10:34
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     announced one day that their sales are flat, people just aren't buying 
     
     
  
 
 
	 00:10:37
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     overpriced diamonds. 
     
     
  
 
 
	 00:10:39
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     ► 
     It's like, okay, well apparently people don't think that 
     
     
  
 
 
	 00:10:42
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     you're as premium as you used to be or, you know, those kinds of things. Like, complaining 
     
     
  
 
 
	 00:10:46
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     ► 
     about that doesn't make sense. 
     
     
  
 
 
	 00:10:47
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     If you can charge a high price and make a high revenue, fantastic. Enjoy that, that is 
     
     
  
 
 
 
	 00:10:52
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     live in the dream, high five. 
     
     
  
 
 
	 00:10:56
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     But the reality is if you're in the app store to make a living, if you're in the app store to make money, 
     
     
  
 
 
	 00:11:00
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     your goal is more likely to be, you know, how can you derive the 
     
     
  
 
 
	 00:11:05
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     ► 
     most revenue from the 
     
     
  
 
 
	 00:11:06
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     ► 
     work that you do? 
     
     
  
 
 
	 00:11:08
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     ► 
     And that's not to get to a point, you know, there's sort of the dark side of that, of kind of 
     
     
  
 
 
	 00:11:11
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     ► 
     getting into scamming and 
     
     
  
 
 
	 00:11:14
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     ► 
     kind of fleecing users, which I would certainly advise against, 
     
     
  
 
 
	 00:11:18
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     ► 
     but you know there's ways to 
     
     
  
 
 
	 00:11:20
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     ► 
     view pricing as a tool to extract that value 
     
     
  
 
 
	 00:11:24
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     ► 
     and in a way that just is basic microeconomics 
     
     
  
 
 
	 00:11:28
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     ► 
     makes good sense. 
     
     
  
 
 
	 00:11:30
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     ► 
     That's kind of 
     
     
  
 
 
	 00:11:31
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     ► 
     the way I approach it. I view pricing as a tool that I have 
     
     
  
 
 
	 00:11:35
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     ► 
     to allow me to make money. 
     
     
  
 
 
	 00:11:37
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     ► 
     You know, I don't really associate too much intrinsic value 
     
     
  
 
 
	 00:11:42
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     ► 
     in the price. That, oh, well, 
     
     
  
 
 
	 00:11:45
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     ► 
     all my apps are 99 cents and that makes me a cheap app developer 
     
     
  
 
 
	 00:11:49
     ◼
      
     ► 
     or whatever. I mean, I have a couple of apps that are more expensive than that. 
     
     
  
 
 
	 00:11:52
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     ► 
     But in general, 
     
     
  
 
 
	 00:11:53
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     ► 
     you know, I just feel I'm trying to price something where I think I will make the most 
     
     
  
 
 
 
	 00:11:57
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     ► 
     And the actual cost of that 
     
     
  
 
 
	 00:12:00
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     ► 
     is really only important to the customer. 
     
     
  
 
 
	 00:12:02
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     ► 
     And that's, you know, that's fair enough. If some customers think that 
     
     
  
 
 
	 00:12:05
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     ► 
     my app is worth more than great, if some of them think it's less than, you know, 
     
     
  
 
 
	 00:12:10
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     ► 
     great, I'm not going to get them. 
     
     
  
 
 
	 00:12:11
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     ► 
     But what I really want to avoid is, 
     
     
  
 
 
	 00:12:13
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     ► 
     you know, not taking advantage of people who 
     
     
  
 
 
	 00:12:17
     ◼
      
     ► 
     could do who could find my app interesting, who could find it useful, 
     
     
  
 
 
	 00:12:20
     ◼
      
     ► 
     but are turned off by a high price. 
     
     
  
 
 
 
	 00:12:23
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     ► 
     rather than getting, you know, a dollar from them, I'm getting zero from them. 
     
     
  
 
 
	 00:12:27
     ◼
      
     ► 
     On the flip side, 
     
     
  
 
 
	 00:12:29
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     ► 
     you want to make sure that if there are people who are willing, who'd be really interested 
     
     
  
 
 
	 00:12:31
     ◼
      
     ► 
     and engaged and want to give you lots of money, that you're addressing them to, and giving them an 
     
     
  
 
 
 
	 00:12:36
     ◼
      
     ► 
     to give that back to you. It sounds like kind of a funny thing, but, 
     
     
  
 
 
	 00:12:38
     ◼
      
     ► 
     you know, it's like you really are creating an opportunity for someone to part with their 
     
     
  
 
 
	 00:12:42
     ◼
      
     ► 
     money and to give it to you. And, you know, it's a willful, 
     
     
  
 
 
	 00:12:45
     ◼
      
     ► 
     often happy joyful thing. I have many people who contact me and support 
     
     
  
 
 
	 00:12:49
     ◼
      
     ► 
     and it's like 
     
     
  
 
 
	 00:12:50
     ◼
      
     ► 
     you know I'm glad I was able to support you and keep this going and 
     
     
  
 
 
	 00:12:53
     ◼
      
     ► 
     keep making the app awesome 
     
     
  
 
 
	 00:12:55
     ◼
      
     ► 
     and they're happy to keep... by creating an opportunity for them to 
     
     
  
 
 
	 00:12:58
     ◼
      
     ► 
     give me money 
     
     
  
 
 
	 00:12:59
     ◼
      
     ► 
     they feel good about that 
     
     
  
 
 
	 00:13:01
     ◼
      
     ► 
     you know and so I think that's kind of where I am. I think I tweeted the other day 
     
     
  
 
 
	 00:13:05
     ◼
      
     ► 
     in my recent update to audiobooks it's been kind of striking how important free is in 
     
     
  
 
 
	 00:13:09
     ◼
      
     ► 
     the app portfolio these days 
     
     
  
 
 
	 00:13:12
     ◼
      
     ► 
     uh... were making about in revenue i'm making about twice what up for my free 
     
     
  
 
 
 
	 00:13:17
     ◼
      
     ► 
     and from the paid app and do the absolute central identical except one of 
     
     
  
 
 
	 00:13:20
     ◼
      
     ► 
     them shows ads 
     
     
  
 
 
	 00:13:21
     ◼
      
     ► 
     and the other one doesn't 
     
     
  
 
 
	 00:13:22
     ◼
      
     ► 
     and in the paid after you there's no ads in the free up a show i had so i used to 
     
     
  
 
 
 
	 00:13:27
     ◼
      
     ► 
     aggregator and all the stuff that mob ads and all the stuff that i'd still add 
     
     
  
 
 
 
	 00:13:33
     ◼
      
     ► 
     the quality about the so much better and 
     
     
  
 
 
	 00:13:35
     ◼
      
     ► 
     it's just so much simpler for and better from a coding perspective 
     
     
  
 
 
	 00:13:39
     ◼
      
     ► 
     but when i found 
     
     
  
 
 
	 00:13:41
     ◼
      
     ► 
     is that's, you know, I think that means that I'm addressing the entire spectrum 
     
     
  
 
 
	 00:13:45
     ◼
      
     ► 
     probably of user. 
     
     
  
 
 
	 00:13:46
     ◼
      
     ► 
     Where I go, there's some people who get the app 
     
     
  
 
 
	 00:13:49
     ◼
      
     ► 
     who give me, you know, pennies from watching ads 
     
     
  
 
 
	 00:13:53
     ◼
      
     ► 
     and then there are people who get the free app, like it, buy all the in-app purchases 
     
     
  
 
 
	 00:13:57
     ◼
      
     ► 
     and, you know, make some money from them directly. 
     
     
  
 
 
	 00:14:00
     ◼
      
     ► 
     There are people who buy the app for ninety-nine cents 
     
     
  
 
 
 
	 00:14:04
     ◼
      
     ► 
     who then never see an ad but they've given me their buck 
     
     
  
 
 
	 00:14:08
     ◼
      
     ► 
     and then kind of you know also potentially buy in at purchases and you 
     
     
  
 
 
	 00:14:12
     ◼
      
     ► 
     by addressing that whole spectrum 
     
     
  
 
 
	 00:14:14
     ◼
      
     ► 
     i think i mean it's it's a good wise business move 
     
     
  
 
 
	 00:14:17
     ◼
      
     ► 
     uh... you know kind of as a especially as it you know as a smaller business 
     
     
  
 
 
	 00:14:21
     ◼
      
     ► 
     i can't afford to be leaving money on the table 
     
     
  
 
 
 
	 00:14:25
     ◼
      
     ► 
     just some thoughts 
     
     
  
 
 
	 00:14:26
     ◼
      
     ► 
     hopefully that's helpful 
     
     
  
 
 
	 00:14:27
     ◼
      
     ► 
     as always if you have questions comments concerns hit me up on twitter i'm @_davidsmith 
     
     
  
 
 
	 00:14:33
     ◼
      
     ► 
     the twitter feed for this podcast is dev perspective 
     
     
  
 
 
	 00:14:36
     ◼
      
     ► 
     and otherwise, hope you have a good week. 
     
     
  
 
 
	 00:14:38
     ◼
      
     ► 
     Happy coding, and I will talk to you later.