The Value of an App: Part 1

“How much does an app cost?”

This is probably the most common question we are asked by our clients. The simple answer is that it depends. Identifying your need is the first step to determining how much an app will cost. Are you looking for an app that is trimmed-down and basic, or do you need an advanced level of functionality for your users? Your answer to this question will help determine a baseline to work with. There are two main categories of apps, app templates and custom apps.

App Templates

These apps are pre-built for specific purposes in mind such as e-commerce or product lookup. They typically do not allow for the addition of custom features but are customizable to match your company’s brand colors, logos, and fonts. Pricing is usually month to month, with costs that vary depending on add-on features such as app sharing, app analytics, cloud database integration, etc.

App templates are a fantastic solution if done right. They provide an inexpensive means of tapping into an otherwise expensive mobile market — all of this with minimal development time. If you are looking for an easy way to sell products to your customers right away, this could be the right solution for you.

The difficulty with an app template is finding one that offers all or even some of the features you are looking for. Good app templates are hard to come by, and because they are tailored to your specific needs, you are left having to sacrifice desired features for the sake of cost. If this is not an option for you, consider building a custom app.

Custom Apps

Custom apps are built from scratch to meet your specific business needs. Because these apps are coded from the ground up, you have virtually limitless possibilities when it comes to designing your app. These apps provide your users with the best experience possible, ensuring brand loyalty and helping you to stand out in your industry.

The average development process usually takes between 3–5 months, start to finish. This process includes initial meetings, designing app concepts, coding the app, testing, revising, and launching the app for use. Experienced app developers know how to make this process as painless as possible.

Why are they so expensive?

A survey of over 100 IT professionals involved in mobile app development asked about the initial cost of developing a “typical” mobile app. It was found that over half reported spending more than three months’ time and over $50,000 developing a typical app and almost a quarter reported spending over $100,000. This may seem high, but when you examine the components, it is easy to see how these costs add up.

Developing a version for tablets or for a second platform, such as Android in addition to iOS, will place costs in the upper end of these ranges. There are a number of online calculators that will help you determine a rough estimate for the exact type of app you need.

It’s important to know that some software companies will try to bring these costs down by sending work overseas, but this invariably results in poorer quality and hence, poorer app engagement.

Alternatively, companies may also cut costs by developing with cross-platform tools such as PhoneGap, and Appcelerator. However, these tools are not native, respond more slowly, and deliver a bland, generic experience.

Conclusion

Before determining the cost of an app, you ought to determine your needs. In doing so, you may come to find that it is possible to create an app for much cheaper than you had initially thought. Regardless, the cost of an app should not deter you from building one. If marketed properly, the long term gains from a mobile app typically exceed it’s short term expenditure. In the next part of this series, we will take a deeper look at the long term value an app can deliver once built.

Visit grandinteractive.com to learn more.

Grand Interactive is a mobile development firm that creates apps for the biotech and life science industry. We specialize in connecting mobile devices to lab instruments, as well as creating apps that increase brand recognition. We are located in Boston, Massachusetts.