Once the app done to get published on app stores, often times, app owners and developers get confused to select the correct price for their app. App pricing depends on numerous factors like development cost, app marketing costs, prices of your competitors, willingness of your users to pay, profits you want to earn, etc. Concerning to all such factors, some methods are stated here, through which you can estimate the correct cost of your mobile application.
Cost-Based Pricing
Cost-based pricing is the addition of mobile app development cost, promotion cost and your profits. It is a straightforward way to put the exact price of your app. But your users might not be happy with such type of pricing where you put your profit at first.
Demand-Based Pricing
This method depends upon the willingness of your users to pay for the app. Obviously, your targeted users are from various sections, you must determine how much each section is willing to pay for your app. You have to test your app by changing the app price each time until you reach to great results.
Value-based Pricing
Value- based pricing is somehow similar to the cost based method. Here, the price is calculated on the basis of actual value of app. However, profit is not considered here. The cons of this method are if you have invested a lot behind the features of an app, you might end up with pricing too higher for users to pay.
Competitor-Based Pricing
Competitor-based pricing method can lead you to the best app pricing especially for your users. Here, you have to analyze first the prices of your competitors and you must put the price of app accordingly. If your app features are more advanced than the apps of competitors, you can just slightly raise your price but with the care not to overprice it.
Conclusion
A perfect balance between the functionality of your app and the willingness of your users to pay for it is a key to determine the correct price of app. At first attempt, you might fail to meet with your expectations for which you have to test your app by putting various price ranges. Comments, ratings, and number of installs at each price will help you put the perfect app price. In most cases, app development companies suggest to keep your app for free at its initiation period, later, with the increasing demand, you can price it accordingly.
See Also: Why To Pay Too Much: Find The Right Price To Develop An App With 5 Easy Steps
Cost-Based Pricing
Cost-based pricing is the addition of mobile app development cost, promotion cost and your profits. It is a straightforward way to put the exact price of your app. But your users might not be happy with such type of pricing where you put your profit at first.
Demand-Based Pricing
This method depends upon the willingness of your users to pay for the app. Obviously, your targeted users are from various sections, you must determine how much each section is willing to pay for your app. You have to test your app by changing the app price each time until you reach to great results.
Value-based Pricing
Value- based pricing is somehow similar to the cost based method. Here, the price is calculated on the basis of actual value of app. However, profit is not considered here. The cons of this method are if you have invested a lot behind the features of an app, you might end up with pricing too higher for users to pay.
Competitor-Based Pricing
Competitor-based pricing method can lead you to the best app pricing especially for your users. Here, you have to analyze first the prices of your competitors and you must put the price of app accordingly. If your app features are more advanced than the apps of competitors, you can just slightly raise your price but with the care not to overprice it.
Conclusion
A perfect balance between the functionality of your app and the willingness of your users to pay for it is a key to determine the correct price of app. At first attempt, you might fail to meet with your expectations for which you have to test your app by putting various price ranges. Comments, ratings, and number of installs at each price will help you put the perfect app price. In most cases, app development companies suggest to keep your app for free at its initiation period, later, with the increasing demand, you can price it accordingly.
See Also: Why To Pay Too Much: Find The Right Price To Develop An App With 5 Easy Steps