Choosing the Right Pricing Strategy for Mobile App Development!

The fastest way for a business to reach its audience is via the internet. There will be over 6 billion smartphone users in the world by the end of 2022. So, what does that mean? It clearly means that the quickest way to reach the users is via their phone and, precisely, an app.

Right Pricing Strategy for Mobile App Development

Now, no matter what business you have, a mobile app can help you outrun your competitors easily. However, there are some things to take care of in that too. First of all, a mobile app is not that easy to build. Furthermore, the cost to develop an app can go from thousands to a hundred thousand dollars.

Therefore, if you are building an app that costs you this much, you have to be smart enough to set an appropriate price for it. The price that you set for your app is dependent on various factors.

In this comprehensive write-up, we will take a look at some of the most critical aspects that will help you decide the price of an app.

What are the various types of pricing models?

Now, when you have to price an app, there are various models that you can choose from. Let’s discuss all those models here!


You might have almost 99% of apps on your phone that are free, right! Yeah, all users like free apps, but if you make a free app, how will you make money out of it?

The key catch about free apps is that they are free to use, but there are still ways for you to make money. For example, in-app ads! Most of the free apps have in-app ads that are as per users’ interests. Therefore, while users use the app, you can make money.

Another reason for keeping the app free is to direct the users to other revenue streams. It is done by businesses that are well established. Free apps are meant to attract users in large volumes.


Most of the users do not consider these types of apps if there are free variants available (and they are always). If you are planning to keep an app paid, for example, a healthcare app, you need to focus a lot on its marketing. Moreover, you need to focus on its true USPs that make it different from others. Most users try to avoid these apps, but when you get a customer, it will stay for a long time if the app holds what they want and lives up to their expectations.

One of the ideal ways to attract users to paid apps is via a free trial of 1-week or one month. For example, Amazon or Netflix.


The basic difference between the freemium and free app is that the freemium app is free to download but is limited in functionality.

The user has to pay a fixed price to get the extra benefits. For example, gaming apps allow the users to get [extra in-game weapons, money, and costumes] by paying a fixed amount. It can also be like providing full functionality for a fixed time and then limiting it. Lastly, if the user wants an ad-free app, they can pay the premium amount.


This is the least opted pricing model as users need to pay for the app as well as for its added functionality. To use this model, your app needs to have features and functionality that users cannot resist. Music streaming and social networking app makers can follow this model.

Critical steps in choosing the right pricing strategy!

The cost to develop an app is massive. If you want to recover what you have spent and the profit over it, you need to closely follow the following points!

Critical steps in choosing the right pricing strategy

Think like your customer

The beginning of the pricing strategy is thinking like a customer. The users today are well-informed about technological advancement. When you say the app is paid, they will immediately analyze the features provided by your app and will surely look for a free app with the same features.

Therefore, it is extremely critical to know what and how the users think. If you are making a messaging app, you need to analyze every single thing that the user may think about before getting your app. Like, you have to analyze the competitors out there that are offering the same app. If their app is paid, compare their features with yours.

The purpose of doing all of this is to ensure that you are offering more value to your customers wrt the price of the app (if it is paid).

Find out what the market is willing to pay

One key problem that app developers face in deciding the price of the app is setting the price too low or too high. As technology changes, the app needs to be updated as per new standards and protocols. And, of course, there are those general app updates too.

If you have initially made your app free and are earning from the in-app ads and plan to charge it, it may not be good for your business. Moreover, if earlier the app was cheaper than your current proposed price, you may not get the best response.

With time, the price of the app may seem unworthy to you. So, it is necessary to test it with various price tags before you launch it at a final price. It will help you find what your audience is willing to pay you.

Align the product features as the user wants

Here is a golden rule! If your app solves the problem that most people face, your app will surely thrive. To make your app fit for the users, you need to understand their pain points and what the users need.

Based on the gathered data, you need to incorporate all the critical features in your app. If your app resolves the issues of the audience, it will be easier and faster to estimate a price. However, keep some critical things in mind, such as the cost to develop an app, market trends, and future plans.

Perform your market research to understand the market

The market today is superfast and changing. Therefore, you need to keep a check on all of your business niche-related activities. For instance, if you are deploying a new food delivery app, ensure that your app has something trendy. Zomato can be an excellent example. Their recent 10 minutes delivery service is a key attractor for the audience.

Make sure that you understand the market before you decide on a price. If your app has all the trendy features, users will be more likely to pay you for the app.

Keep a tab on your competitors activities

Competition needs to be taken care of. If you are selling an app in the market out there, it should be better than your competitors in all ways. For example, putting your app at a lower price than your competitors can provide you with an edge. However, you need to ensure that it has everything that your competitor is offering. Moreover, your app should also have something unique from the market.

Keep a reasonable price as per your business prospects

Lastly, always keep the price economical, you can start slow, but if you have a customer base and then you alter the prices, it can become a nightmare for you. Keep the greed factor away and always price your app fairly for better business results.

Why is a pricing strategy necessary?

As you are investing your time, money, and efforts in building an app, it is crucial for you to have a strategy to set a fair price for it. After all, your app will be your key source of income and a medium to cover the market.

Now, the right pricing strategy is necessary because of various reasons, such as

To rank higher than the other competitors

Your app will have various competitors in the market. If your app does not have a fair price, it will not be entertained by the users. For instance, if you set the price of the app more than your competitors, your app may get traction in the beginning. But, it may lose customers afterward if it does not have the required features.

In contrast, if the app is provided for free or at a low cost, it may not get the required attention if your competitors are also offering it at the same price. Therefore, a well-planned pricing strategy is crucial.

Helps you stand out

Your app may be different and unique, but it will not gain traction if it is not priced well. For example, if your app has a high price and no one knows about it, it will not be entertained. Hence, it is crucial to understand the users and their needs. The study of both of these aspects is done in the pricing strategy.

Final Words

The cost to develop an app can be massive. However, if your app becomes a hit, it will be recovered along with the revenue. To ensure that your app performs well, incorporate all the features in it that solve a customer problem. On top of that, decide its price based on all the aspects shared in this article. Ensure that you follow every step very carefully.



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Pratik Rupareliya

Pratik Rupareliya

Techno-commercial leader heading Intuz as head of Strategy.