How to Price and Charge for Your Mobile App

Smartphone dispensing 100 dollar bill

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Developers work long hours creating mobile apps. Once an app has been created, most developers face doubts about pricing the app. How does one price a mobile app?

While there is nothing like a "standard" or "ideal" pricing chart, there are a few things that can help you sell your app better. Here is a how-to on app pricing.

Choose Your Method

  • Using the cost-oriented method, you first calculate the average amount it will cost you to create your app and promote it and then also decide the number of profits you would like to make from it. This will give you the price you should charge your customers. Sadly, this method has more cons than pros. While this works if your calculation is absolutely accurate, it can go haywire even if a small adjustment has to be made to it.
  • The demand-oriented method, as the name suggests, is flexible. You first determine the demand for your app and find out how much each section of your audience is willing to pay for it. Of course, using this method means that you have to offer multiple pricing plans to your customers, each plan giving them different features. The disadvantage here is that your customer may not necessarily know which plan to upgrade to, if at all.
  • Following the value-oriented method of pricing allows you to price your product according to its actual value, not to you, but to your potential customer. If the app is going to benefit the user greatly, he is going to be very willing to spend a few dollars more for it. The downside here is that you might end up overvaluing your product just because it is your baby!
  • Using the competitor-oriented method of pricing a product, you price your app in relation to the existing competition. This assures fair pricing for your mobile app and gives your audience the impression that you are on par with the competition. This is also a legitimate thing to do in an open market. But see to it that you do not ruffle the feathers of a more experienced rival. That may well end up ruining your business. Raising your price slightly above the competition will make customers think that yours is a better product. Only do not overprice it so much as to make your visitors run away.


  • Do not stick with just one app pricing technique. Be open to trying it all.
  • Do not worry if your app sales drop considerably the first time around. It takes practice and experience to get it right.
  • Remember, it is always better to slightly underprice than grossly overprice your product.
  • One neat trick of effective app pricing is to charge customers a monthly fee rather than an annual one. This will give them the impression of spending far less on it