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By Christoph Ono, builder at GBKS, and tweetable at @GBKS.

Worth Less than a Cup of Coffee

4/28/17App Store

Lots of discussion around app pricing right now. What most don't cover are the economies of scale that developers can tap into. Yes, the price for one app download may be $0.99. But there are no manufacturing or distribution costs, very little support needed, and the product is instantly available to hundreds of millions of people. A cup of coffee, in comparison, can be sold exactly once, and only to a customer that walks through the door in a particular location at a specific time. Additional costs are store rent, barista salary, coffee beans, plastic cups, sugar, etc. None of these apply to apps. Most of the really complicated stuff is taken care of by Apple and Google's incredibly sophisticated machinery so developers and customers can purely focus on cat photos.