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About the Episode
Are you looking to start your own service based agency? Well today’s guest talks about his pricing strategy and how he was able to grow his app development firm. Also, listen to advice on when and how to increase your prices.
How Much to Charge?
Coming up with your pricing strategy or determining your asking price is always a balance with these three considerations:
- The quality of service you can provide,
- The price the competition is charging for their service, and
- The target profit that allows you to pay your employees fair wages.
Effective Ways of Making an App Business Grow Bigger
Growing bigger is a normal process in the maturity of a business. To achieve growth, these are the factors to consider:
- Build a reputation – this takes time but a company with an established reputation can command its own price, offer acost-quality relationship with clients,fine tune the services provided by balancing cost to the client with the level of skill and competence being offered.
- Offer a Package Deal – this makes it convenient for the client to make your company a one-stop shop where good service is provided from concept, to design, to actual product and finally, to marketing. The package deal allows a company to have more flexibility with cost. Also, it does away with communication glitches and the need for the client to source out certain stages of the project, causing breaks in the production flow.
- Efficient Monetization – assess how an app can be efficiently monetized. It is important to always have reliable data so feedback is accurate, and after this, analyze what successful companies have done right and then apply it to your own company.
What advice would you give anyone thinking about raising prices?
“Raising the bar filters people who just do not have the budget. Set a decent price that allows you to afford paying your developer a fair price but leaves room enough room to provide excellent service to the client.”