Stores

Basic concept is how many coins or in game currency you’re selling for how much.

It gets a littler weirder than that if you want to maximize your efforts.

The first concept is how many coins you want to offer for each package. I call this coins per dollar or coins/dollar.

Let’s say you’re going to offer 5 items for sale. If you’re selling 1,000 coins for \$5, selling 1,500 for \$10 doesn’t make sense to the buyer. I should buy \$5 twice to get more. The question is if and/or much more I get for spending more. This is a volume discount.

Now there are merits for offering a flat or no volume discount store, but few examples. If you’ve decided on having one the next decision is how much.

There are various opinions on having a volume discount. Your competition doesn’t know any better than you. They may have tried it, but they don’t know it won’t work now. Absolute opinions have no basis in today nor was their experiment without flaws. Yours won’t be either.

The research is as simple as opening an app/game and doing the math on their stores. Coins/Dollars.

Should you offer 20x the coins per dollar at \$100 vs. \$5? Maybe. Should it be 5x? Sure.

Is \$100 now worth more than \$50 twice later? Depends on if you keep that player to spend again. Is repeated purchasing better than once now and maybe later? These are all hard things to prove even with great analytics.

One problem with changing your mind is it’s hard to go back from offering 10x coins at \$100 to only 5x coins. The solution is to raise everything up to hide it. So if I was giving you 1,000 coins for \$5 and 1,000,000 for \$100 (10x the coins per dollar) I can’t make it 500,000. If we test them against each other the 10x should win in the short term at least. Most experiments can’t run years in the app/game business.

So if I want to change my 10x \$100 package to 5x the value of the \$5 package I could make \$5 5,000 coins instead of 1,000. Now my \$100 package is 2,500,000 coins or 5x the value. Both the \$5 package and \$100 are now worth more coins, but the respective value has changed. The experience curve or hardness to reach the next level or new content needs to match that as well.

There are many more concepts and experiments to be discussed, but these are the basic ideas.