How To Decide The Price Of A Mobile Application

By Author: Yancy Marry
Total Articles: 185
Comment this article

Software development companies not only have to think about unique features and functionalities for their mobile apps but also have to decide the prices of applications before launching them in the market or uploading them at major app stores. Not every mobile software can be released as a free app; there is also the freemium version for which developers have to quote the price for downloading advanced features. Though a standard pricing chart is not available, it is advisable to follow the below mentioned methods before deciding on the price of a mobile application.

1. The cost oriented method – In this system of app pricing, the total budget that developers have to set aside for app creation and promotion of the software using different platforms, and also the amount of projected profit have to decided in advance. In this way, the developer will have an idea of the price to be charged from the user base so as to cover all projected costs. However, this is not the most popular method of app pricing since most development companies fail to make an accurate estimate of their app designing budget; moreover, it leaves ...
... little scope for minor adjustments in pricing.

2. The value oriented method – In this system of app pricing, the developer needs to have a clear idea of the value of his/her mobile application to an existing and potential user. The price of the app is fixed in accordance with its value to the customer. This means that higher the value, higher will be the price of the software. The reason why mobile analysts recommend following other methods of pricing over this one is that software developers often misinterpret the worth a mobile application may have for its audience.

3. The demand oriented method – This is perhaps the most popular method used for pricing a mobile app because it is easy for a developer to determine the demand for his/her category of application in the current market. For instance, if gaming apps are more popular than finance apps among the contemporary mobile audience, the former will sell at a higher price. This method also provides the developer with the flexibility of quoting prices of future updates made to the app.

4. The competitor oriented method – In this method of app pricing, prices are fixed as per the relative competition in the contemporary mobile market. This is one of the fairest systems of mobile application pricing methods followed by software developers. Following this method, a more experienced developer stands a chance of selling his/her apps at a higher price compared to less experienced designers. The method also provides software firms with the liberty of raising prices above the competition level. But it is advisable to exercise caution while doing so, since overpricing a mobile app can kill its chances of selling in the market.

An important tip that software development companies worldwide must remember is that using only one or two app pricing methods is not a good technique. The ideal way is to experiment with all the methods of app pricing for mobile applications of different categories. Also, developers must ideally charge monthly subscription fees from the target users as opposed to annual fees as the customers will then be more interested to use the app since they are paying less money at a time.

One of the trusted enterprise application developer Dallas backed by a team of renowned apps developer has offering mobile app development solutions. The iPhone developers in Dallas has created more than 300 applications for clients from various industry verticals.