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How to Price your Mobile Site Development for HUGE Margins

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Posted 4th September 2012 at 01:46 PM by tjkirgin

Whether you are using an Enterprise Mobile Site tool to crank out sites or coding them by hand, is up to you. If you are using a tool like ours that has no activation fee and just a low monthly of $8 per HTML5 Mobile Site, Then you will want to price a low activation fee of $200-$400 up front and a monthly fee for the HOSTING and CMS that is more than the $8 that you will pay. So a good example is $299 for design and coding followed by $19.95 per month for CMS and HOSTING. Using this model, your first 12 month cost for this package is $96 and your Gross Sales for the same period is $538.40. This means you have earned a profit margin of over 560%.

If you are coding them by hand using a template that you have previously created, it should take no longer than 6-8 hours to create the HTML5 Mobile Site. It also takes NO SKILL. If you are using a template, a low level $9 per hour employee or intern can do the heavy lifting with a little training, Dreamweaver and an FTP Client. In this case, you can choose to sell the source code of the site as a one time project starting at $500 (Duda Mobile backed by Google charges $499 so they set the market). However, if you can upsell the client with more bells and whistles that helps achieve the goal of the mobile strategy you help them create, you can charge MUCH MORE. Lets say you get $800. Your intern did the work at $9 per hour and took 6 hours. Your cost is $54. Your profit margin is over 1400%. Can you live with that?
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