I may be in the wrong forum for this but I would like other
developers' opinions on this.

I sell my app for $1.50 on the Android market and for $3 on Paypal,
the higher price there because of the additional work on my part of
getting updates to customers and the risk that they email the .apk to
all their friends.

Now I suddenly get a fair share of customers saying they reset their
phones or bought a new one and despite them using the same google
account, they can no longer see my app as purchased on the market and
are asked to pay again. Understandably they are not too happy about
this.

So they ask me if I can give them a refund if they buy again.
Understandably, I am not happy about that either.

1) If I were to give a refund (don't know how that would be even
possible), I would effectively pay Google's share twice leaving me 40%
instead of 70%.

2) Google is responsible for delivery to the customer. This is what
they get the 30% for. If they cut customers off because of them
changing the phone, it seems customers should have to deal with them
rather than with the developer. But because Google probably wouldn't
even respond to their request, they come running to the developer.

Customers feel entitled to receiving updates via email because Google
won't honor their purchase. But that's a service they never paid for
with me.

What is your experience / policy / opinion with this?
Do you offer refunds, would you give them credit if they purchased
again via Paypal, etc?

I feel taken advantage of if someone says "they want to support a
developer because this is the best app they have been using on
Android" and at the same time they want a $1 refund while paying $40
every month to large tele-companies for the service. What is wrong
with people? It is our apps that make these phones worthwhile using...

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