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Selecting The Price Tier for Paid Issues and Subscriptions
Selecting The Price Tier for Paid Issues and Subscriptions

What is the pricing tier? How to set it up? How much revenue will the publishers get?

Okka avatar
Written by Okka
Updated over a week ago

We got several questions from our clients asking about this price tier. For those who don't know what it is, simply it's a price that you need to choose for your app or anything that needs to be purchased within the app. In this case, it means your issue both for a single one or a subscription. You need to choose the price tier because Apple or Google will generate that price into local prices which are available for your app. So, in a concise description, the price tiers do simplify the global pricing process for developers. 

At MagLoft, we help you to select the price tier from MagLoft portal. We provide all price tiers based on Apple. You may see the screenshot below for your reference :

You can open the pricing tier by going to your issue then scroll down until you find the Unlock Type section. Set the issue to paid then the Price Tier will appear. To see all the price tiers, simply click on the question mark. Also, you can open the pricing tier from the Subscription section. At the Price section, just click on the question mark. It will show all the pricing tiers like the screenshot below :

It's important to note that how to set the price is quite different between Apple and Google. On iTunes Connect, all you have to do is selecting the price tier you want. In the other hand, on Google Play Developer, you should type the price manually. It's better to use the same price for your paid issues or subscriptions on Apple and Google. 

And yet, Google and Apple will generate the price into local prices differently. You are allowed to change the price based on the countries if you want. Also, in some countries, the price usually will be added with tax so your readers may be charged more. Please see the screenshots below for more details. 

You should know that both Google and Apple will take a 30% cut for a paid app, in-app purchase, or in-app subscription. Also, in some countries or continents, the available tax will also deduct the publisher's revenue. As for a subscription, on the second year, Apple and Google will reduce the cut which is only 15%. So, in general, for the publishers, your proceeds will be 70% of the payment.  In fact, realistically it is usually even less because in many countries Apple and Google are required to withhold a further percentage as a consequence of domestic taxes.

Apple will list prices in GROSS and will deduct any VAT from your proceeds. That means if you sell an issue for $4.99 that is what your reader will pay and Apple will deduct the VAT from your proceeds after they take their 30% store commission. Meanwhile, Google price excludes tax. For customers in the EU Member States, Google is responsible for charging, collecting, and remitting the VAT on sales as a result of changes in EU VAT legislation.

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