Quick Question on Apps?

RyanLima · 15th Apr 2014, 08:30 AM

Hi,

Anyone here currently selling app development/ creation services to small businesses?

If so, I was curious on how much you price your services at.

The reason I ask is, a small business owner has approached me and
asked if I would create an App for his small cleaning business.

Thanks in advance.

- Ryan

Valdor Kiebach · 15th Apr 2014, 12:16 PM

You will need to find out exactley what this app is going to do then ask as you should base it on the complexity of the app but more importantly on the value this app will bring to the business.

You would not charge $500 for an app that would bring in $1million in extra revenue for the company.

dbong · 15th Apr 2014, 04:49 PM

Generally, I charge between $600-$1200 depending on complexity of an easier, more simple app. You should never have a flat rate though, I would suggest advertising your services and have potential customers ask for an estimate.

Another way is an hourly rate. You can track hours using something like oDesk or Elance, however, the client would then have to pay a bit more for transaction fees.

jprano · 16th Apr 2014, 04:01 PM

Is there a service with software available to build apps?

Chris Gylseth · 17th Apr 2014, 09:50 AM

Last question first: There are several services that let you build apps without really needing to know any code. Most of these are fairly limited in what the app can do, some of them look right out ugly, while others again offer more options and better design. The challenge with all of them is to have them behave exactly the way you want them to, and I know most developers prefer to write their own code as it gives them more flexibility and control, and in the end it provides a better result. Many of the app engines are reported to have issues with being accepted on the app stores, or with proper functionalities across all devices.

This article should give you some good pointers to available app engines:

Handy code-free mobile app development resources for small businesses | ZDNet

As to the first question, what you should charge? I agree with Valdor Kiebach on this that it really depends on what your customer wants the app to do. Something that is a 'simple' feature in the mind of the customer might not be 'simple' in programming terms. It also depends on your own knowledge. If you are new at this you might charge less as they essentially would be paying you to learn, so your profit margin will also be smaller. You also need to know if this is supposed to be a web app, an iPhone app, iPad app, and/or Android app. Each platform has it's own set of requirements and programming language. While there are tools that let you develop cross-platform apps, these tools don't provide as clean code as doing each app separately, and can still end up taking just as much time. Bear in mind that you will also have to provide ongoing support and upgrades.

A couple of good articles on pricing an app are:

Android Development Costs Revisited | Android App Development Quotes

iPhone Application Development Average Cost

While I think it's great that you have had the request to build an app, before you go ahead and build anything for him or her, I would suggest that you have a talk where you discuss:

1. What is the purpose of the app? Meaning how does the business owner envision the app adding to the bottom line of the cleaning business?
2. Why would a customer be interested in downloading an app from the cleaning business, and how could you make them interested?
3. What will the app do for customers to want to keep it on their phone?

Too many app developers are happy to get a paying gig and therefore don't bother or dare to ask these questions, which often results in a poorly executed app, an app that nobody wants to download, or an app that people delete right away. It doesn't help offering a 'cheap' app if it ends up without purpose. An app that costs $1,000 but doesn't produce any increased revenue is a $1,000 lost, while an app that costs $10,000 that produces $20,000 in additional revenue has a 100% ROI. In either case the business still has an app, but you see which option is the best one. I encourage you to ask the questions above if you haven't already done so, and you will be presenting an increased level of professionalism.

vne5 · 26th Apr 2014, 08:18 PM

The app complexity and content are key determining factors in your pricing. There are obvious reasons why a small car, small engine, no air cone, no radio, etc. costs less than a fully loaded model. Also, a good gauge is, how much is your time worth?

It will really help you to know a bit about the industry as well (i.e how much does a restaurant need to sell to make a profit from the app).

What is their advertising budget (obviously McDonalds has more than Joe's diner on the corner).

Knowledge is power especially in this business.

There really isn't a end all-be all, magic bullet answer to this question.

15th Apr 2014, 08:30 AM	#1
RyanLima Artist Turns Entrepreneur War Room Member Join Date: 2010 Posts: 303 Thanks: 68 Thanked 58 Times in 47 Posts	Quick Question on Apps? Share on: Hi, Anyone here currently selling app development/ creation services to small businesses? If so, I was curious on how much you price your services at. The reason I ask is, a small business owner has approached me and asked if I would create an App for his small cleaning business. Thanks in advance. - Ryan
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15th Apr 2014, 12:16 PM	#2
Valdor Kiebach Howdy War Room Member Join Date: 2008 Location: England Posts: 679 Thanks: 101 Thanked 150 Times in 124 Posts	Re: Quick Question on Apps? Share on: You will need to find out exactley what this app is going to do then ask as you should base it on the complexity of the app but more importantly on the value this app will bring to the business. You would not charge $500 for an app that would bring in $1million in extra revenue for the company.

15th Apr 2014, 04:49 PM	#3
dbong LightningInteractive.com Join Date: 2013 Posts: 174 Thanks: 23 Thanked 39 Times in 29 Posts	Re: Quick Question on Apps? Share on: Generally, I charge between $600-$1200 depending on complexity of an easier, more simple app. You should never have a flat rate though, I would suggest advertising your services and have potential customers ask for an estimate. Another way is an hourly rate. You can track hours using something like oDesk or Elance, however, the client would then have to pay a bit more for transaction fees.
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16th Apr 2014, 04:01 PM	#4
jprano HyperActive Warrior Join Date: 2009 Posts: 106 Thanks: 85 Thanked 24 Times in 22 Posts	Re: Quick Question on Apps? Share on: Is there a service with software available to build apps?

17th Apr 2014, 09:50 AM	#5
Chris Gylseth HyperActive Warrior Join Date: 2013 Posts: 103 Thanks: 12 Thanked 29 Times in 18 Posts	Re: Quick Question on Apps? Share on: Last question first: There are several services that let you build apps without really needing to know any code. Most of these are fairly limited in what the app can do, some of them look right out ugly, while others again offer more options and better design. The challenge with all of them is to have them behave exactly the way you want them to, and I know most developers prefer to write their own code as it gives them more flexibility and control, and in the end it provides a better result. Many of the app engines are reported to have issues with being accepted on the app stores, or with proper functionalities across all devices. This article should give you some good pointers to available app engines: Handy code-free mobile app development resources for small businesses \| ZDNet As to the first question, what you should charge? I agree with Valdor Kiebach on this that it really depends on what your customer wants the app to do. Something that is a 'simple' feature in the mind of the customer might not be 'simple' in programming terms. It also depends on your own knowledge. If you are new at this you might charge less as they essentially would be paying you to learn, so your profit margin will also be smaller. You also need to know if this is supposed to be a web app, an iPhone app, iPad app, and/or Android app. Each platform has it's own set of requirements and programming language. While there are tools that let you develop cross-platform apps, these tools don't provide as clean code as doing each app separately, and can still end up taking just as much time. Bear in mind that you will also have to provide ongoing support and upgrades. A couple of good articles on pricing an app are: Android Development Costs Revisited \| Android App Development Quotes iPhone Application Development Average Cost While I think it's great that you have had the request to build an app, before you go ahead and build anything for him or her, I would suggest that you have a talk where you discuss: 1. What is the purpose of the app? Meaning how does the business owner envision the app adding to the bottom line of the cleaning business? 2. Why would a customer be interested in downloading an app from the cleaning business, and how could you make them interested? 3. What will the app do for customers to want to keep it on their phone? Too many app developers are happy to get a paying gig and therefore don't bother or dare to ask these questions, which often results in a poorly executed app, an app that nobody wants to download, or an app that people delete right away. It doesn't help offering a 'cheap' app if it ends up without purpose. An app that costs $1,000 but doesn't produce any increased revenue is a $1,000 lost, while an app that costs $10,000 that produces $20,000 in additional revenue has a 100% ROI. In either case the business still has an app, but you see which option is the best one. I encourage you to ask the questions above if you haven't already done so, and you will be presenting an increased level of professionalism.

26th Apr 2014, 08:18 PM	#6
vne5 Owner LMCreatives War Room Member Join Date: 2011 Location: From USA but live in Beijing Posts: 172 Thanks: 6 Thanked 38 Times in 31 Posts	Re: Quick Question on Apps? Share on: The app complexity and content are key determining factors in your pricing. There are obvious reasons why a small car, small engine, no air cone, no radio, etc. costs less than a fully loaded model. Also, a good gauge is, how much is your time worth? It will really help you to know a bit about the industry as well (i.e how much does a restaurant need to sell to make a profit from the app). What is their advertising budget (obviously McDonalds has more than Joe's diner on the corner). Knowledge is power especially in this business. There really isn't a end all-be all, magic bullet answer to this question.
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