As mobility becomes the lifeline of businesses today, having a mobile app becomes a business imperative. But what would be the considerations that you would bear in mind while investing in mobile app development? Of course, you would look for a skilled and experienced partner, to begin with. And then there would need to have an innovative app idea that fulfills your business needs as well. Finally, the most critical question for any business would be about the cost because everyone has a budget after all.
The fact is that even the most seasoned team will not be able to come up with an exact figure before the initiation of the project. The pricing may vary considerably from what is estimated in the beginning; for instance, if you start with the MVP version and gradually want more features to be added during the project progress, the cost will go up significantly. The costs may vary based on the fact whether you are taking up iOS or Android app development, or opting for a cross-platform solution. A key aspect of app costing is the pricing model you choose. Let’s understand the two most common pricing models and how you can choose the one that works for you.
Fixed Price Model
This model, as its name suggests, provides a fixed estimate at the beginning of the project and there is hardly any scope of any alteration during the project. When you hire a developer in this scenario, the budget and timelines are decided in advance. Also, the project scope is pre-determined in terms of app idea, its platform, and features and functionalities. Everything is sorted out between the client and the development team before arriving at an estimated budget for the project. Here are some other essential features of this app development model.
Pros and Cons
- Since everything is pre-decided, the development team is acquainted about molding the project right from the beginning. There is absolute clarity about the app UI as well as the features and functionalities that the client expects it to have.
- The deadline for app delivery is fixed in the model and the development team is required to deliver within the timeline.
- From the client’s end, the downside of this model is the lack of flexibility as they cannot seek changes during the project under any circumstances.
- There is a risk element for the development company too, as they need to stick to a deadline.
- This model works if you require a simple app with minimalist features, which can be developed without many complexities.
- Your idea is to build a Minimum Viable Product or a prototype model to test the validity of the idea of the app.
- You have a limited budget and would want it to be well-defined before the project is initiated.
- You have clarity related to the choice of platform and app features and would not want them to change in the future.
The concept of hourly hiring model is straightforward, with the cost being calculated by per hour basis according to the number of developer hours spent on the project. Also known as the Time and Material Model, this one has a flexibility for the client as he can demand some changes to be done in the requirements during the phase of project completion. They are given the liberty to come up with suggestions and feedback and have them incorporated into the app while it is still in progress.
Pros and Cons
- Flexibility is the biggest benefit that comes with the option of hourly hiring as it enables the client to come up with changes anytime. The price demanded by the developers is directly proportional to the efforts and time they give.
- The involvement of the client in such projects is upfront as they can give their inputs from time to time and keep a close look at the project.
- From the client’s perspective, the downside is that the cost is not fixed and the budget may sometimes go haywire if the project gets stretched beyond limits.
- The timelines are flexible too as more hours can be added according to the client’s additional requirements and/or feedback works in the favor of the development team as they can deliver the best services without deadline pressure.
- This approach would be ideal for you if you do not have a clear app idea right from the beginning. You may start with an app but get it tweaked several times to have additional features included in it.
- The app requirements are complex and developers require subsequent testing and repeated client approval/feedback to meet the expectations.
- You are keen on being closely associated with the development team and know all that is going on throughout the project progress.
Fixed Price Model or Hourly Hiring: The Final Verdict
After discussing both the pricing models in detail, it will be easier to decide which one actually works in your circumstances. Every business is unique and so are its requirements and budget; therefore, the choice of the app development pricing model is very much dependent on your requirements and estimate. The best approach would be to have an open discussion with your application development partner and get a complete overview on the project. Mobibiz is a mobile app development company that offers diverse pricing models for their services. Talk to us and find out the best option for your needs.