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The cost of creating an app, or how to talk about price?

The question of the cost of developing mobile or web applications is certainly an interesting one for you.

How do you approach this in order to spend exactly what you need to while maintaining maximum quality and business value? What data should I rely on when estimating the application budget?

You have several ways how to talk about your application with potential contractors. Here are some common ways to ask for a price.

Method 1: Ask for a cost range

The content of such a query might look like this:

"Ladies and Gentlemen,

I am interested in developing an application with [briefly the purpose and functionality of the application]. I would like to get information from you regarding the cost range for building such an application.

Would it be possible to provide a preliminary quote or estimated range of costs, taking into account the process of designing, programming, testing and implementing the application? It is very important for me to obtain cost information so that I can assess the financial options available to me and make a decision on the way forward.

Please email me or call me so we can discuss the details and possibly set up a meeting to discuss the project in more detail.

Thank you in advance for your time and response.

Sincerely, [your name]."

Is this a good way to do it?

Laconic information about the application being designed will result in a software house that respects its own and the client's needs to quote rather abstract amounts. "The application will be in the range of PLN 60,000 - 150,000, depending on the number of screens and functionality."

Method 2: Send a specification requesting a quote

If you have a project specification that takes into account all the envisioned functionalities, the dependencies between them, and all the screens of the application (if only in descriptive form), then you are already one step further. Such a quote might make sense, so we'll take a closer look at this scenario.

A carefully written out spec will already create a certain image in the IT Project Manager, he will even already be able to advise you something i.... you will probably get a response close to such: "The web application, is the cost of a maximum of PLN 90,000, while the cost of the mobile application will depend on several factors...[list of questions]" and at the end of the email strongly pro-client: "I would be happy to schedule a consultation with you to discuss the details of the application so that we can prepare an analysis for you."

Is that enough for you?

Way 3: Hire a business analyst, let him make a quote

A business analyst who creates an application concept and then user stories is a very valuable persona in a project. Nevertheless, quite expensive, especially at the outline stage. If you try to hire a business analyst without proper understanding, you will get this answer:

Thank you for your inquiry, of course we have an excellent business analyst on our team. Please send information about what you would like to create, and our analyst will take care of it. An hour of work of the analyst, is xxx zl, and the time required to prepare the analysis, including user stories is xxx hours."

If you agree, you will get a detailed business case, with functionalities and dependencies (eng. dependencies) written out and an implementation strategy developed...but you still won't know how much this application will cost and what it is supposed to live off of.

Way 4: Define the purpose and business model

The best way we know where a mobile app valuation should start is with the business model.
Defining the application's business purpose is a key step in the application development process, which is to identify the main purpose of the application in the context of the business. The business purpose of the application should be clear, specific and in line with the organization's goals.

What does such a step-by-step process?

Understand business needs: Conduct a business needs analysis and identify areas where the application can bring value and solve specific problems. Stakeholder interviews, business process analysis and market research can provide valuable information in this area.
Determine expected benefits: Think about what benefits you would like to achieve with the application. Is it about improving operational efficiency, increasing revenue, enhancing customer loyalty, streamlining processes, expanding your target market or strengthening your competitiveness? Specify these expected benefits.
Identify key functions and capabilities: Identify what functions and capabilities of the application will be necessary to achieve the business objective. Identify the key functions that should be present in the application and that will significantly contribute to the intended benefits.
Establish success indicators: Formulate specific success indicators to measure the achievement of the business goal. These can be numbers, such as increasing sales by a certain percentage, reducing order processing time, increasing market share, etc. Choose metrics that are appropriate for your business and application goal.
Support business strategy: Ensure that the business objective of the application is aligned with the organization's overall business strategy. It should be integrated with other activities and celebrations to contribute to long-term plans.
Communication and understanding: It is important that the business objective of the application is clearly communicated and understood by all stakeholders, including project team members, customers, end users and other stakeholders. This will enable focus on achieving a common goal and avoid divergent expectations.

Once you have determined all your business goals, approach the agency and describe what you care about. Ask them to choose a solution that meets all your business goals and costs only what is necessary. In the case of PoC ("What is PoC and why is it worth thinking about?") or MVP (Minimum Viable Product) application can be developed in "low-code" technology, it is cheaper than traditional (high-code) applications by up to 80%.

Also pay attention to whether the software house has at least a basic knowledge of marketing and sales. If they don't, the cost of producing the application will be higher, and in extreme cases the project may struggle to be profitable.

Also find out how to avoid Typical problems with IT contractors

The cost of creating an app, or how to talk about price?

Method 1: Ask for a cost range

Method 2: Send a specification requesting a quote

Way 3: Hire a business analyst, let him make a quote

Way 4: Define the purpose and business model

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