We have a free version. Our hope is to signal a premium product with the $2.99 price for the paid version and so drive trial of the free version in order to monetize with IAP. We'll see if it works..
I think this is a smart thing to try, especially because the purchasers are likely to be parents who are used to blowing $2.99 on physical coloring books that last for one dinner. Unlike, say, college students buying games, parents who want this probably won't relate much differently to 2.99 than .99, I would guess.
