How to Price an App Based on Its Features
Are you developing a new app and wondering what price point to set? Pricing your app correctly is critical in setting yourself up for success. It’s essential to evaluate the features of your app, understand the market demand, forecast future incentives and ensure the price keeps customers happy without leaving money on the table. In this blog post, we’ll discuss the different price ranges/techniques and how to price your application correctly.
There are a number of pricing models that you can consider when developing your app. The first is the “Free” model, where users can download and use your app without any charge. Another model is “Freemium,” where the app is free to use, but certain features or services can be unlocked with payment. “Paid” is a simple model where users pay a one-time fee to download the app and access all of its features. For a mix of both paid and freemium strategies, you can consider the “Paymium” model, where users can download the app for free and make multiple in-app purchases for various purposes. Lastly, there’s the “Subscription” model, where users must renew their app subscription monthly or annually to continue using it.
How Price your App
Now that we know the different types of price strategies, we can decide how much the app is worth depending on its features. When pricing an app based on its features, it is important to consider the cost of development, the marketability of the product, and any additional services that could be provided. Creating an app can be a rewarding and lucrative experience, but it is essential to price the app correctly in order to maximise profits.
When pricing your app, consider your target market’s purchasing power. If you are targeting a low-income demographic, they may have a low demand for expensive applications. Therefore, it would be wise to set a lower price point that will still give them access to valuable features. On the other hand, if you are targeting higher-income demographics with more disposable income, you could set a higher price point because it will likely be worth their money.
The demand for similar apps must also be taken into account when pricing your app. If several competitors offer a similar product, you may need to decrease the price to remain competitive. However, if there’s not much competition or demand for the app, you may be able to set a slightly higher price point that will allow for more profit.
Finally, consider the costs of development when deciding on a price point. Ensuring you are making enough money to cover all expenses related to creating and launching the application is important. Price your app too low and you risk being unable to recoup your development costs or make any profits. On the other hand, pricing it too high may deter potential customers from buying it.
Fine Tune Your Prices Overtime
Monitoring several metrics, including downloads, sales figures, customer satisfaction, and usage, is essential to make informed decisions about app pricing. The data collected can assist you in fine-tuning and adjusting your app’s price to match the market demand. To respond to changes in the market, you could even alternate between different pricing strategies over time. For example, during economic downturns, consider providing discounts on specific features. Alternatively, during times of high demand, you could launch limited-time offers. Regularly monitoring the data will allow you to ensure that your pricing remains appropriate for your target audience over time.
Contact Appoly for App Development
If you are looking to develop a web or mobile app or have an idea that you’d like to discuss, then get in touch and speak to one of our expert UK-based development team members.
We’re always happy to discuss new projects and advise on app pricing.
Starting a new project?
Fill in the form below to download our brief of requirements template: