How Much Is Your App Worth?

Figuring out how much an app is worth can be more complicated than it initially seems. When offering a paid app to the market, there are several ways to set its selling price. Perhaps the best method is to simply decide how much it is worth considering the project's breakeven point. This way you can offer your app to the market at face value, but still turn a profit by either selling more units or by reducing your expenses. This is just one facet of selling your mobile app for a given price. To further illustrate, here are a few additional aspects to consider when pricing your app.

Setting A Price

Getting the most possible money for the hard work and money invested in your app is essential to its profitability. Many app makers like to set the price of their mobile offering by how much users are willing to pay for it. This sort of pricing can be a bit tricky, however, as you decide on a price point for your app, it is best to try out different ones. It really is the best way to know how much your app is worth. For example, if you try selling your app at $5.99, but sales have dropped off significantly from the $2.99 price that it once had, then you may consider meeting in the middle, perhaps somewhere around $4.50. While this price point may also be too high, it is always a good idea to test the limits on how much users are willing to pay for it. In this way you will be able to find out exactly how much users are willing to pay for your app without hurting sales numbers.

Considering Your Breakeven Point

The breakeven point is an important consideration in terms of figuring its price point. Such consideration is vital, as it will tell how much you can charge for your mobile app without losing money, and at the very least breakeven. In other words, by all means you want your app to at least breakeven. In doing so, your goal should be to either limit your expenses and/or maximize the revenue of your app. If you feel that your app, at least initially, is having trouble finding an accurate selling point, then you may consider limiting the expenses of it and any unnecessary expenditures of your company. For instance, if your app is spending a lot of money on updates and maintenance costs, you may consider limiting those, perhaps even with its selling price, in order to get a better idea of how much it is really worth. This will also ensure you do not lose large amounts of money right off the bat.

Conclusion

Optimizing how much you get for your app in terms profitability and a proper selling point is essential to your company’s success in the mobile marketplace. If you sell your app too short, then your expenses may end up outweighing its revenue, which can subsequently result in a loss of money. For such reason, you should actively consider the breakeven point for your app project and how it factors into its profitability in the market. In doing so, it is important to remember that regardless of how much you think your app is worth, it is actually only worth what users are willing to pay for it.