More often than not, mobile app developers offe r a product for free to garner a huge user base and generate revenue from advertisements. So, it is essential to holistically view the recurring revenue model and not worry about the revenue per price point. To stay competitive, app developers for startups need to tap on new functionality and offer regular updates. And to determine that, you must test your product at different price levels and see how the market responds.Īn application has a recurring revenue stream. The right mobile application pricing strategy should revolve around what the market is willing to pay. So, when determining the mobile application development pricing strategy you must take into account other products available in the market, characterize your value proposition and ensure you are offering a greater value than your competitors. Simple, you must ensure that the perceived value of your product is greater than its price.Ī customer should always feel that the price of your product is right and tapping into this segment becomes all the more easy when they do not have a reference point to begin with.īefore making a decision, we humans tend to compare products with the alternatives available in the market and assess them for their pros and cons. Customers today are well-read, well informed and they always strive to make a conscious decision.įor every product, there are ten other alternatives available in the market, so how do you assure a customer will choose your product? It is the growing rise in consumerism that steers the scope of advancements. Human psychology plays a fundamental role in determining the price of your product.Ĭonsumers are keeping up with the rapid strides in technology. Here are some of the best product pricing strategies that you can choose to adopt within your mobile app. How to Choose the Best Pricing Strategy for Mobile AppsĪs mentioned before, several factors play a vital role in determining mobile application development pricing. In this article, we will be discussing some of the ways to determine the right price of your application along with the popular pricing models for apps. So, how to price an app? A lot of factors come into play when ascertaining the price for your app- market research, the value and functionality of your app, and the market competition. How you determine the price of your product decides the success of your app in terms of the number of downloads and user retention in the long run.īut it is like walking on a tightrope- apps that are offered for free or at a relatively lower price gather greater market share and can penetrate in the market seamlessly while apps that are offered for a higher price have the potential to garner a good ROI. Product pricing strategy in marketing plays an instrumental role in getting your app the initial traction and visibility in the app store. It should be carefully determined to build a profitable and scalable mobile app business. Sure, providing value to the end-users is the prime goal behind any app but pricing a digital product is an equally important aspect, one that should not be overlooked. Since the startup app development process has been repeatedly talked about, a considerable amount of time and effort is spent on discovery, design, and development. For every Apprenuer, building a great mobile application takes center stage.
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