Looks like a great app! Congrats on getting two paying customers. One tip for the author:
In setting prices, remember the price elasticity of demand, which is how much people respond in terms of the quantity they buy depending on the price.
The demand curve might be such that as demonstrated two people want the app for $20 (the price charged). But perhaps ten people would buy it it for $9, maybe fifty people want it for $5, and perhaps at $0.99 no fewer than ten thousand people would buy it.
(In poker terms: you're giving them a price; how many big blinds would they call? Only the 1% of hands can call a 20 big blind raise, everyone else folds and moves on.)
If demand is highly elastic, setting the price at $2.99, $1.99, or $0.99 might be a great idea.
The author could try experimenting with discounts to see how much demand there is at various prices. It is not an exact science and there is no way to tell ahead of time. Starting at $20 and going down from there seems reasonable.
It might depend on how many customers the author wants to support.
I've drawn for you this diagram about how economists talk about quantity and price, illustrating it in a simple way (you can think of it as rows in a ledger going from high to low prices and listing how many are wanted at each price, high to low):
> Starting at $20 and going down from there seems reasonable.
slowly reducing the price doesn't work because the consumer would see that the price is being reduced, and wait for the reduction to stop, even if the current price would've been worth it for the consumer to purchase (aka, they would've gotten excess value at a higher price, but still wait for the reduction to finish). After all, buying the app isn't urgent.
So therefore, a different way to discern the price sensitivity is needed. Often you will have to have a discount deal that is time limited, and may be targeted geographically.
In setting prices, remember the price elasticity of demand, which is how much people respond in terms of the quantity they buy depending on the price.
The demand curve might be such that as demonstrated two people want the app for $20 (the price charged). But perhaps ten people would buy it it for $9, maybe fifty people want it for $5, and perhaps at $0.99 no fewer than ten thousand people would buy it.
(In poker terms: you're giving them a price; how many big blinds would they call? Only the 1% of hands can call a 20 big blind raise, everyone else folds and moves on.)
If demand is highly elastic, setting the price at $2.99, $1.99, or $0.99 might be a great idea.
The author could try experimenting with discounts to see how much demand there is at various prices. It is not an exact science and there is no way to tell ahead of time. Starting at $20 and going down from there seems reasonable.
It might depend on how many customers the author wants to support.
I've drawn for you this diagram about how economists talk about quantity and price, illustrating it in a simple way (you can think of it as rows in a ledger going from high to low prices and listing how many are wanted at each price, high to low):
https://imgur.com/a/VzcRwlL