Carrie gets it, finally. I'm just describing a possible opportunity, not presenting a concept that should be analyzed endlessly for cost effectiveness and market researched endlessly for price points.
Couponing (the activity) can result in people walking out of grocery stores with several hundred dollars of merchandise that they paid perhaps $20 for. If you could partially automate the most tedious parts of this process (it takes hours both for the research before hand and for the shopping trip itself) by databasing and organizing the coupons using software, the cost effectiveness of a $20 application would be absurdly obvious to its customers.
One reason that database programs in general are not as useful as they could be is in coping with external data sources, especially real life ones. This is sort of a boundary of the effectiveness of database applications. As long as all content sources are digital and are presented in a near obvious format, everything is good. Once you deviate from those clean sources of data you can (in my opinion) find economic opportunities - activities that so far are impervious to computerization.
I have run into this problem with contact management software. Say I have a web site address for a business. It would be *nice* if a contact manager could just take the URL and parse as much company specific information from the web site as possible into a database - street address, email addresses, names of key executives, phone numbers. Nobody does this. Why? It's hard and messy. But it would have a lot of value.
A Mac program called "Delicious Monster" solves this problem by scanning the bar codes of media. But that's kind of an easy problem because there are sources of data online for the bar codes of media.
Finally, about cost barriers to cell phone apps. Yes, yes, yes, there is the $1 or $2 barrier that "nobody" wants to pay. I bought a smartphone so I actually have something to say about this subject based on experience, not hearsay.
What you find in the Android marketplace is that free apps are usually extremely limited, or do generic things like system administration functions on the phone (file browsers and "settings" programs to make settings more convenient), or... are free versions of "real" applications that cost $3.95 to $20 in most cases.
I do believe there is a price barrier but as Carrie indicated it's more like $10 to $20, and in part you can rationalize this by the fact that tablet and phone apps contain extremely simple GUIs compared to desktop applications, and are not expected to be as feature rich. Most phone apps are pretty dedicated in specific ways and don't have a richness of options. They tend to do exactly one thing. They should be easier to develop than a nominally similar desktop app.
Also the market for cell phone apps is much more social so you should expect much more fluidity in the market for cell apps than for desktop apps. The phone is a communication device. People tell each other about applications that they have downloaded, and of course you can just show someone what you bought and how it works by showing them your phone. Inherently you should be able to sell many more cell apps than desktop apps.
What kind of application would sell in the upper price range of, say, $15? For example, an application that transforms the phone into a fully functional and extremely enhanced GPS for hikers. Yeah, there are free GPS applications for Android and they hardly do anything except track your movements.
People will pay for real solutions:
OTOH, the head cashier at the store where I worked shopped for herself and two married daughters. Using coupons and her "valued customer" card, she would routinely save 50% or even 90% on a basketful of groceries. The checkout process was quite impressive to watch. First ring up the sales, second scan the card, then scan the coupons, so you could see the savings at each stage. And a yard or more of register tape. I think she had the daughters clipping all the coupons.
This hits on two points - how much can be saved, and the amount of labor is alluded to. Couponing is a cost-benefit equation that the public has been "educated" upon, so this really isn't a stab in the dark.
This is big news in the media today. I believe a good number of commercial successes are due to the right product arriving when the public can appreciate it.
I believe that someone will attempt a handheld app like I am describing and it will sell for real money, not for 50 cents.