How to Price Mobile App Services: A Guide for Agencies
"How much should I charge for mobile apps?"
It's the question every agency asks when expanding into mobile services. Charge too little and you'll burn out. Charge too much and you'll lose deals.
This guide will help you find the pricing sweet spot that works for your agency and your clients.
The Pricing Mindset Shift
First, let's address the elephant in the room: you're probably undercharging.
Most agencies price based on:
- What competitors charge
- What feels "fair"
- What they think clients will pay
None of these are good strategies. Instead, price based on:
- The value you deliver
- Your target profit margins
- The total cost of service delivery
Understanding Your Costs
Before setting prices, know your numbers:
Platform Costs
- White-label platform fees: $200-500/month per app
- Hosting and infrastructure: $50-200/month
- App store fees: $99/year (Apple) + $25 one-time (Google)
Labor Costs
- Initial setup: 10-20 hours
- Ongoing support: 2-5 hours/month per client
- Account management: 1-2 hours/month
Overhead Allocation
- Sales and marketing
- Tools and software
- Training and development
Rule of thumb: Your direct costs should be 30-40% of your price. If you're paying $400/month in platform costs, charge at least $1,000-1,300/month.
The Three-Tier Pricing Model
Most successful agencies use three pricing tiers. Here's a template:
Starter Tier: $750-1,000/month
What's included:
- Single mobile app (iOS or Android)
- Basic customization (colors, logo, content)
- Standard features only
- Email support (48-hour response)
- Monthly analytics report
Best for: Small businesses testing mobile presence
Professional Tier: $1,500-2,000/month
What's included:
- Both iOS and Android apps
- Advanced customization
- Premium features (push notifications, integrations)
- Priority support (24-hour response)
- Weekly analytics + monthly strategy call
- Basic ASO optimization
Best for: Growing businesses serious about mobile
Enterprise Tier: $2,500-5,000/month
What's included:
- Everything in Professional
- Custom feature development
- Dedicated account manager
- Same-day support
- White-glove onboarding
- Quarterly business reviews
- Custom integrations
Best for: Established businesses with complex needs
One-Time Setup Fees
Don't forget setup fees to cover your initial investment:
| Tier | Setup Fee | What It Covers |
|---|---|---|
| Starter | $1,500-2,500 | Basic configuration, app store submission |
| Professional | $3,000-5,000 | Custom design, training, data migration |
| Enterprise | $7,500-15,000 | Full customization, integrations, launch support |
Setup fees accomplish three things:
- Cover your upfront labor costs
- Qualify serious buyers
- Get clients invested in success
Value-Based Pricing Strategies
The ROI Conversation
Help clients understand the value:
"Your average customer is worth $500/year. If this app helps you retain just 10 more customers per month, that's $60,000 in annual revenue. Our $1,500/month fee is a 3x return."
The Comparison Anchor
Custom app development costs $50,000-250,000+. Position your service against this:
"Building this custom would cost $75,000 minimum, plus $2,000/month in maintenance. With us, you get the same result for $5,000 setup + $1,500/month — and you can cancel anytime."
The Cost of Inaction
What happens if they don't have an app?
- Lost customers to competitors with apps
- Missed engagement opportunities
- Lower customer lifetime value
- No push notification channel
Pricing Psychology Tips
1. Always Present Three Options
People avoid extremes. When shown three options, most choose the middle. Make your middle tier your target.
2. Annual Discounts
Offer 10-20% off for annual prepayment. This improves cash flow and reduces churn.
Monthly: $1,500/month ($18,000/year)
Annual: $1,250/month ($15,000/year) — Save $3,000!
3. Remove Price from the Conversation
Lead with value, not price. By the time you discuss cost, they should already be sold on the outcome.
4. Confidence Matters
State your price confidently. Hesitation signals you don't believe in your value.
Handling Price Objections
"That's more than I expected"
"I understand. Can I ask what you were expecting to invest? And what's your goal for this app in the first year?"
Redirect to value and goals.
"Your competitor is cheaper"
"They might be. Can I ask what's included in that price? We often see agencies cut corners on support, updates, or quality to hit lower price points."
Differentiate on value, not price.
"Can you do it for less?"
"Our pricing reflects the level of service and results we deliver. However, if budget is a concern, our Starter tier might be a better fit. What's most important to you in this project?"
Offer alternatives, don't discount.
"I need to think about it"
"Of course. What specific concerns would you like to think through? I'm happy to address them now if that helps."
Uncover the real objection.
When to Raise Prices
Signs it's time to increase prices:
- You're closing more than 70% of proposals
- You have a waitlist for new clients
- Your profit margins are below 50%
- You haven't raised prices in 12+ months
- Clients never push back on pricing
Pro tip: Raise prices for new clients first. Grandfather existing clients or give them notice.
Pricing Mistakes to Avoid
- Competing on price — You'll attract price-sensitive clients who churn
- Hourly billing — Caps your income and commoditizes your work
- No setup fee — You absorb all the risk
- Too many tiers — Confuses buyers and complicates operations
- Discounting too easily — Trains clients to always ask for discounts
Your Pricing Action Plan
- Calculate your costs for each tier
- Set prices at 2.5-3x your costs
- Create a pricing page with clear tier comparisons
- Practice your pitch until you can state prices confidently
- Track your close rate and adjust accordingly
Remember: pricing is not permanent. Start somewhere reasonable, learn from the market, and adjust.
Ready to add mobile apps to your services? See Platfio →