The Right Price: Do you have it?

The primary goal of this article is to empower Unity Asset Store publishers with the knowledge and strategies needed to find the "right price" for their content, ultimately aiming to increase overall revenue. Pricing is not just a number but a reflection of value, quality, and market position.

Despite the critical role that pricing plays in a product's success, there's a common trend among publishers to undervalue their content, often pricing it lower than what the market is willing to pay. This cautious approach, while understandable, can lead to missed revenue opportunities and inadvertently signal a lower perceived value to potential customers. More effective pricing strategies which accurately reflect the value of content will attract the right audience, increase revenue, and boost long term success.

Each section is designed to tackle different aspects of pricing strategy and its impact on sales and product perception. We will break down pricing strategies and correct common myths, discuss how to understand your market, how pricing affects perception, and end with tips for long-term success.

Setting the right price for your content isn't just about making immediate sales; it's a critical factor for long-term success and sustainability in the competitive landscape of game development. A well-considered pricing strategy takes into account not only the market's willingness to pay but also aligns with the inherent value of the product for the customer. It's a strategic decision that should aim to maximize total revenue, taking into consideration additional factors like support costs, which can vary significantly with the complexity and nature of the asset. 

Developers turn to the Unity Asset Store for a variety of reasons, primarily to accelerate development timelines, solve complex problems, and enhance their projects with features that would be time-consuming or difficult to create from scratch. This underscores a crucial point: Developers are often willing to invest in assets not out of necessity, but for the value they add—be it saving time, enabling new capabilities, or improving project quality. 

Moreover, setting higher prices can indirectly contribute to an asset's perceived value and exclusivity, potentially increasing its attractiveness to developers who are looking for quality and reliability.

The right price, specifically one that is not too low, can have a significant positive impact on revenue, especially during sales and promotional events. Assets with higher regular prices can offer more compelling discounts during sales, attracting more attention and driving higher volumes of purchases while multiplying revenue.

Strategic Pricing Reflects Value and Enhances Perception: The right price for Unity Asset Store content should reflect its inherent value and quality and plays a crucial role in shaping consumer perception. A well-considered pricing strategy will signal the asset's worth, attract the right audience, and ultimately contribute to the publisher's long-term success.

An understanding of your target market is crucial for finding the right price. This begins with recognizing that the majority of customers are solo indie developers and hobbyists possessing intermediate development skills. However, the spectrum of users also spans from beginners to experts, each with unique needs, goals, backgrounds, and project scopes.

Don’t forget to check out the Tastes & Trends* survey results. This data is overflowing with insights about who your customers are, what their needs and backgrounds are, and what their goals are with Unity. * Link is to the private publisher space in Discussions. If you don’t yet have access, check the email sent when an asset is accepted to the store for instructions.

Customers' project types, preferred game genres, and art aesthetics play a significant role in their purchasing decisions. For instance, a developer working on a fantasy-themed game is less likely to invest in assets designed with a western theme, just as a 2D game developer might bypass tools optimized for 3D world-building.

Similarly, developers who are focused on prototyping may be less likely to ship their title in the near term, and may be far less likely to purchase live services than a studio focused on maintaining revenue from released titles.

Understanding these preferences enables publishers to adjust their offerings and pricing to better match potential buyers' needs. It also brings to light the concept of market reach for a product: a limited number of sales might not necessarily indicate a product's low quality or too-high pricing but could instead reflect a narrow market. Some assets are inherently niche, catering to a specific genre or development style, which naturally limits their broader market appeal. Recognizing this helps publishers set realistic sales expectations and devise pricing strategies that accurately reflect their product's specialized value.

When products underperform in sales, it's essential for publishers to consider whether the cause is truly related to price, or if it's a matter of limited market reach, or simply that the target customer does not realize they would benefit from the product. Simply put, often documentation, marketing, and asset descriptions are not conveying the value proposition to the target audience.

Spend a moment to figure out who your target audience is – whether broad or narrow in scope. Then ask yourself if the marketing material you’ve produced is communicating the value proposition to the target audience. Folks don’t buy products they don’t need – or that they don’t yet realize they need.

As an example, beginner users are often unaware of intermediate or advanced topics and problems that other developers like yourself may take for granted. They may have a problem that your asset solves, but not even realize the problem exists, or understand why it is a problem.

The vast majority of users are willing to pay to overcome problems. It is the job of the asset description, tutorials, videos, and other marketing material to communicate the value the product brings.

Understanding and Targeting the Market

Deep knowledge of the target market, including the diverse needs and preferences of indie developers, hobbyists, and expert users, is essential. Tailoring pricing and marketing strategies to match these needs ensures that the product reaches its intended audience, whether broad or niche, effectively communicating its value proposition.

Pricing psychology goes beyond mere numbers; it plays a fundamental role in shaping consumer perceptions and decisions. A common psychological principle in consumer behavior is the association of price with quality. Low prices, while seemingly attractive, can often signal low quality to potential buyers, inadvertently setting a baseline expectation of inferiority.

This perception can deter buyers, especially those looking for solutions that promise reliability while looking to avoid wasting their time. Premium pricing strategies do more than just reflect the cost of production or service delivery; they communicate confidence in the product's quality and value, positioning it as a premium offering in the marketplace.

For many customers, confidence in a product comes from the belief in its ability to solve a specific problem or enhance a project. This confidence is crucial because, without it, customers are hesitant to commit to a purchase.

It's essential to recognize that many customers may be initially unaware of the product's benefits or even the basic premise of the problem it aims to solve. Therefore, a part of strategic pricing involves educating the customer not just on the value of the product but also on the significance of the problem it addresses. A price which indicates value must be backed up with strong marketing and documentation.

Strategy A: Capture the broadest market

When you want to reach as many people as possible, start by assuming they don't know anything about what your asset can do or the issues it's designed to fix. This gap in knowledge means you need a plan that leans heavily on educating and engaging your audience. Think eye-catching images, captivating videos, detailed guides, and easy-to-follow tutorials. These aren't just to show off what your asset looks like; they're there to clearly explain how it works in real projects and the specific problems it tackles, and build customer confidence.

By pumping up your marketing with materials that spell out your asset's benefits, you're not just throwing a wide net—you're making sure it's packed with the right bait to catch a diverse group of developers, no matter their experience or background.

Strategy B: Target niche customer segments

For products designed for a very specific segment of the market—those that may not have broad utility but are invaluable for certain applications—the communication strategy needs to be more targeted. 

Keywords play a critical role in this approach, serving as beacons to guide the target audience to your product. Utilizing precise, niche-specific terminology in your product's title, description, and marketing materials can signal to potential buyers that your asset is tailored to their specific needs. 

In some cases, it can be beneficial for publishers to explicitly state that their product is designed for a particular segment of users. This can be achieved through direct statements in the product description or targeted messaging in promotional materials. Such clarity not only helps in attracting the right audience but also sets appropriate expectations, reducing the likelihood of dissatisfaction or confusion. 

With niche products, it's all about making strong connections rather than casting a wide net. Your marketing should feel like it's speaking directly to your intended audience, showing them how your product solves their unique problems or adds something special to their projects that they can't get from more general tools.

It is worth noting that niche products often command higher price points, as there is perhaps less competition, and those who need the solution to a niche product may be more willing to pay for a quick successful resolution.

The Psychological Impact of Pricing on Consumer Confidence

Price points influence how customers perceive the quality and reliability of an asset. Setting prices that reflect the product's value and quality can boost buyer confidence and willingness to invest, underscoring the importance of strategic pricing in market positioning.

Supporting your products over the long haul is essential for long term, sustained success, but remember, providing support takes time and resources. This reality should be factored into your pricing and product strategy from the outset. Continuous product maintenance, such as fixing bugs and updating assets to remain compatible with new versions of the Unity Editor, as well as incorporating new features in response to customer feedback, are all part of this equation. These efforts keep your product relevant, useful, and in demand, but they also incur ongoing costs.

A strategic approach adopted by many publishers to address this challenge involves releasing annual versions of their products. This model allows customers to purchase the product initially and then pay smaller upgrade fees for new versions that include significant updates, enhancements, or compatibility improvements, using the “Major Upgrade” feature in the Publisher Portal.

Such a strategy not only ensures that publishers are fairly compensated for their continuous investment in product support and development but also encourages a cycle of recurring revenue. This model benefits both the publisher, by providing a steady income stream, and the customer, by delivering consistent value and innovation, thereby reinforcing the mutual commitment to quality and longevity in the evolving digital marketplace.

Another tactic is to create additional complementary products that, when used together, provide an even more positive user experience. This “ecosystem” approach can capitalize on customer loyalty, and reduce the costs associated with supporting your products. Not only that, by producing additional content, overall discoverability can increase, helping new customers find your main product.

Sustainability Through Strategic Updates and Ecosystem Building: Ensuring long-term success involves more than just setting the right initial price; it requires ongoing product support, updates, and the development of complementary products. Adopting strategies such as annual version releases and creating a product ecosystem can help maintain relevance, foster customer loyalty, and secure a steady stream of revenue.

Publishers on the store have a tendency to underprice their products, reducing their revenue and making it harder to find long term success and growth. While individual results will always vary, in general higher prices result in higher revenue, and can even reduce external costs, like the time it takes to provide support for your products.

If you’re not making the sales you’d like, first consider who your customers are, and work to improve your marketing and communication to those customers. Aim to produce confidence that they have a problem which your product solves, that they will save time by purchasing your asset, and that they will find this success quickly and easily.

The tools and artwork you produce saves many hours, and enables developers to create the games they want to create. Price your products accordingly.