Realmac's decision to price the Mac version of its popular todo app Clear at $15 raised some eyebrows, with the company choosing to launch at a much lower price point and raising the price later.

In a blog post today, Realmac's Rob Jarman laid out the company's pricing philosophy, as well as some thoughts on app pricing in general:

Like most of us, when it comes to parting with my hard-earned money I’m an advocate for being prudent. To help decide on the value of something, I tend to use a “beer strategy”. While trying to decide if I really wanted something I would work out how many pints I could get with the same money, then by missing 1 night out I’d make a guilt and hangover free purchase. By applying this strategy to our latest release of Clear for Mac for example, £6.99 could just about get you 2 pints. So for a piece of software that will increase my productivity, that I’ll use every day skipping those two pints is an easy decision.

NewImage

Now how about those Hiut Jeans I’ve been thinking about for a while? 40 pints. That’s a few nights out, so I best start saving! I’ve chosen both our app Clear and Hiut Jeans for a reason. Both have a story, have had many months of development, and been built by people with a passion for what they do.

[…]

There are other todo list apps available which are cheaper, free even. There are apps which have way more features, and those that cost much, much more. So how does that change our perception of value? In our opinion, it doesn’t. You won’t find the same user experience with any other apps. The use of gestures is unique, and the simple approach to task management is unparalleled. The care we put into making sure the user experience is the best it can be is evident in every element of the app.

Now lets apply that thought process to the Hiut Jeans, why would I spend £130 on a pair of Jeans when I can pick up a pair for £20 on the high street? Because of the fit and finish. Because they were made by a “Grand Master” seamstress, using a sewing machine in Cardigan Bay, Wales. Because of the story. Because of the way they would make me feel. Because of sustainability. Just because software is a less tangible product, doesn’t mean that the making behind the scenes differs in any way.

Top Rated Comments

SaxPlayer Avatar
169 months ago
The response to this is going to be fairly predictable. Those who write apps will feel some sympathy with RealMac Software. Those who buy apps will say that it's too expensive. Probably.

Being a developer myself I fall into the former category. I'm going through a similar thought process for an iPad app I'm just wrapping up development on. It's taken many hours to create and I've spent a huge amount of time carefully putting it together. I had to bring in an expert for the subject matter I'm working on and she also invested lots of her time in the project. We will split any profit between us.

Similar to RealMac software selling my app for less than a fiver just won't do it justice, however I know that if I charge much more than £1.99 for it, it probably won't sell - however good it is.

When I first started developing apps for the iPhone, before the iPad was in the frame, I remember telling a friend about a project I'd been working on with some colleagues. I'd written the code, one other guy had created the graphics and the other had developed the concept and tested. We'd decided to charge just 99p for it, even though - with 3 of us involved - it would take forever to earn anything close to the money needed to pay for our time. This is before iAd or the move into freemium app models but he couldn't understand why we weren't giving it away for free. And this guy runs his own business. :eek: Scary.

The bottom line here is that people want a bargain and don't want to pay a reasonable rate for other people's hard work. They shop in cheap supermarkets and don't understand why their food tastes horrible and buy cheap clothes that in 2 washes are falling to pieces.

I will be flamed to within an inch of my life here, I realise that, but however much I don't like it - that's the way it is. :(
Score: 15 Votes (Like | Disagree)
Keebler Avatar
169 months ago
The response to this is going to be fairly predictable. Those who write apps will feel some sympathy with RealMac Software. Those who buy apps will say that it's too expensive. Probably.

Being a developer myself I fall into the former category. I'm going through a similar thought process for an iPad app I'm just wrapping up development on. It's taken many hours to create and I've spent a huge amount of time carefully putting it together. I had to bring in an expert for the subject matter I'm working on and she also invested lots of her time in the project. We will split any profit between us.

Similar to RealMac software selling my app for less than a fiver just won't do it justice, however I know that if I charge much more than £1.99 for it, it probably won't sell - however good it is.

When I first started developing apps for the iPhone, before the iPad was in the frame, I remember telling a friend about a project I'd been working on with some colleagues. I'd written the code, one other guy had created the graphics and the other had developed the concept and tested. We'd decided to charge just 99p for it, even though - with 3 of us involved - it would take forever to earn anything close to the money needed to pay for our time. This is before iAd or the move into freemium app models but he couldn't understand why we weren't giving it away for free. And this guy runs his own business. :eek: Scary.

The bottom line here is that people want a bargain and don't want to pay a reasonable rate for other people's hard work. They shop in cheap supermarkets and don't understand why their food tastes horrible and buy cheap clothes that in 2 washes are falling to pieces.

I will be flamed to within an inch of my life here, I realise that, but however much I don't like it - that's the way it is. :(

AJ, you raise some good points.

I'm not a developer, but I do run my own little business and people focus way too much on PRICE these days. I'm not sure if it's just a down economic time or the fast paced technological world we know live in where people simply don't have patience or a combination of both.

But regardless, people focus too much on price without worrying/caring about the time gone into a product or how much they'll use it.

They've also forgotten about another key element - VALUE! If there's no value to you, then don't buy it. If there's value and you think it's worth it to you, then buy whatever it is you're hedging on.

There are a number of apps I use all the time and VALUE more than others. If an app out there would do what I want, then I'm all in. The price would be justified to me. Might be worth it to others, might not.

Also, there's something to be said for this company keeping their price as is so they can somewhat control their user group. ie. if they care about their product and want to improve it, I would then think the feedback coming from a user who valued the product at $15 would be someone who actually uses it often and has a vested interest in its future.

Versus joe blow who paid $0.99 for it, hardly uses it and b*tches about it to the company on feedback forms, emails or calls.

I'm like that with my business. My prices are based on my costs, time and the value I provide. If someone comes to me and says, well, joe blow does it for x amount less than you, then I say go to them then. Do i lose some business? For sure.

But I also lose most of the headache clients who don't see nor understand the value. In the past, I did bow down to price pressure, but since I stopped doing that, I'm alot less stressed trying to gain business by working for those who want the work done.

As I told a client just 2 days ago (whom I've done work for in the past), I'd rather go to a movie or have a nap than work for minimum wage on a project that is worth more - especially when he didn't see the value. lol

Cheers,
keebler
Score: 11 Votes (Like | Disagree)
jake0112 Avatar
169 months ago
I used the same strategy in college on whether or not to eat that week
Score: 11 Votes (Like | Disagree)
Reason077 Avatar
169 months ago
Hah. Just keeping fishing for logic there. $15 for this app is too much. People would rather have an app that works nearly as well for $2 or $5.
A few years ago, $15 for an Mac app of this caliber would have been considered a bargain. It's interesting how "app store economics" have changed people's expectations.
Score: 9 Votes (Like | Disagree)
Ryan.Tanner Avatar
169 months ago
Hah. Just keeping fishing for logic there. $15 for this app is too much. People would rather have an app that works nearly as well for $2 or $5.
Score: 9 Votes (Like | Disagree)
akatsuki Avatar
169 months ago
Developers can cry all they want, but they should learn a little bit of business:

Peter Drucker called it a deadly business sin:

"The third deadly sin is cost-driven pricing. The only thing that works is price-driven costing. Most American and practically all European companies arrive at their prices by adding up costs and then putting a profit margin on top. And then, as soon as they have introduced the product, they have to start cutting the price, have to redesign the product at enormous expense, have to take losses -- and, often, have to drop a perfectly good product because it is priced incorrectly. Their argument? "We have to recover our costs and make a profit."

This is true but irrelevant: Customers do not see it as their job to ensure manufacturers a profit. The only sound way to price is to start out with what the market is willing to pay -- and thus, it must be assumed, what the competition will charge and design to that price specification."

When you talk about the labor you put into an app, that is all very nice, but the consumer doesn't care... All that matters is what people are willing to pay. So maybe when you think about developing an app - decide on the price it will sell at and then focus on putting the effort into it that gets you there and no more.
Score: 8 Votes (Like | Disagree)

Popular Stories

iOS 26

iOS 26.2 Available Next Month With These 8 New Features

Tuesday November 11, 2025 9:48 am PST by
Apple released the first iOS 26.2 beta last week. The upcoming update includes a handful of new features and changes on the iPhone, including a new Liquid Glass slider for the Lock Screen's clock, offline lyrics in Apple Music, and more. In a recent press release, Apple confirmed that iOS 26.2 will be released to all users in December, but it did not provide a specific release date....
m1 chip slide

Five Years of Apple Silicon: M1 to M5 Performance Comparison

Monday November 10, 2025 1:08 pm PST by
Today marks the fifth anniversary of the Apple silicon chip that replaced Intel chips in Apple's Mac lineup. The first Apple silicon chip, the M1, was unveiled on November 10, 2020. The M1 debuted in the MacBook Air, Mac mini, and 13-inch MacBook Pro. The M1 chip was impressive when it launched, featuring the "world's fastest CPU core" and industry-leading performance per watt, and it's only ...
AirPods Pro Firmware Feature

Apple Releases New Firmware for AirPods Pro 2, AirPods Pro 3, and AirPods 4

Thursday November 13, 2025 11:35 am PST by
Apple today released new firmware designed for the AirPods Pro 3, the AirPods 4, and the prior-generation AirPods Pro 2. The AirPods Pro 3 firmware is 8B25, while the AirPods Pro 2 and AirPods 4 firmware is 8B21, all up from the prior 8A358 firmware released in October. There's no word on what's include in the updated firmware, but the AirPods Pro 2, AirPods 4 with ANC, and AirPods Pro 3...
iphone pocket%402x

Apple Debuts iPhone Pocket, a Limited Edition iPod Sock-Style Accessory

Tuesday November 11, 2025 1:23 am PST by
Apple has teamed up with Japanese fashion house ISSEY MIYAKE to launch iPhone Pocket, a 3D-knitted limited edition accessory designed to carry an iPhone, AirPods, and other everyday items. The accessory is like a stretchy pocket, not unlike an iPod Sock, but elongated to form a strap made of a ribbed, elastic textile that fully encloses an iPhone yet allows you to glimpse the display...
homepod mini colors

New HomePod Mini Coming Soon With These Features

Tuesday November 11, 2025 7:30 am PST by
Apple is expected to announce a new HomePod mini imminently, headlining with new chips. Here are all of the new features we're expecting. The second-generation HomePod mini is highly likely to contain a more up-to-date chip for more advanced computational audio and improved responsiveness. The current HomePod mini is equipped with the Apple Watch Series 5's S5 chip from 2019. Apple is likely ...
ios 26 digital id passport wallet

Apple Announces Launch of U.S. Passport Feature in iPhone's Wallet App

Wednesday November 12, 2025 9:15 am PST by
Apple today announced that iPhone users can now create a Digital ID in the Apple Wallet app based on information from their U.S. passport. To create and present a Digital ID based on a U.S. passport, you need: An iPhone 11 or later running iOS 26.1 or later, or an Apple Watch Series 6 or later running watchOS 26.1 or later Face ID or Touch ID and Bluetooth turned on An Apple Account ...
homepod mini thumb feature

New HomePod Mini, Apple TV, and AirTag Were Expected This Year — Where Are They?

Wednesday November 12, 2025 11:42 am PST by
While it was rumored that Apple planned to release new versions of the HomePod mini, Apple TV, and AirTag this year, it is no longer clear if that will still happen. Back in January, Bloomberg's Mark Gurman said Apple planned to release new HomePod mini and Apple TV models "toward the end of the year," while he at one point expected a new AirTag to launch "around the middle of 2025." Yet,...
Tesla Charging

Tesla Working to Add Apple CarPlay Support to Vehicles

Thursday November 13, 2025 8:31 am PST by
Tesla is working to add support for Apple CarPlay in its vehicles, Bloomberg's Mark Gurman reports. Tesla vehicles rely on its own infotainment software system, which integrates vehicle functions, navigation, music, web browsing, and more. The automaker has been an outlier in foregoing support for Apple CarPlay, which has otherwise become an industry standard feature, allowing users to...
CarPlay Pinned Messages

iOS 26.2 Adds New CarPlay Setting

Thursday November 13, 2025 6:48 am PST by
iOS 26 extended pinned conversations in the Messages app to CarPlay, for quick access to your most frequent chats. However, some drivers may prefer the classic view with a list of individual conversations only, and Apple now lets users choose. Apple released the second beta of iOS 26.2 this week, and it introduces a new CarPlay setting for turning off pinned conversations in the Messages...
iphone air thinness

iPhone Air Sales Are So Bad That Apple's Delaying the Next-Generation Version

Monday November 10, 2025 11:41 am PST by
The thin, light iPhone Air sold so poorly that Apple has decided to delay the launch of the next-generation iPhone Air that was scheduled to come out alongside the iPhone 18 Pro, reports The Information. Apple initially planned to release a new iPhone Air in fall 2026, but now that's not going to happen. Since the iPhone Air launched in September, there have been reports of poor sales...