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Hi, lately I was contacted by a company to make a mobile app for them. they want to promote their products and sell them online through the app.

I have written a lot of apps and services before however I did them as an employee of some company, so I never cared how the app was sold or marketed therefor I don’t know how to price the app i’m supposed to make.

Is there something like a formula to use to calculate the price of a service or app?

by the way there are going to be two mobile apps, one for Android and another for IOS. Also there should be a backend to handle the business stuff.

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    Keep reading Barnacles to learn a lot about this kind of stuff. Especially marketing. Their pricing tag might have some helpful articles.

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      There is no formula, but never start with a low bid and try not to think like an IT-person. This isn’t about two apps and a database backend. This is about creating value for them through increased sales. That is worth a lot of money.

      Figure out what kind of money you need to make a sustainable living, including pensions and extras for savings/runway if anything goes bad. Now figure out the cost of maintaining the backend, plus staff to handle the service level they want. Now you know your minimum and you never go near it in negotiations.

      They contacted you because they know you can do the work, I assume. If so, first talk to them about their budget and what kind of extra sales this will be generating. Make it a conversation, because the two of you are in this as a partnership to make money.

      As far as I know, Apple is already going to take 30% of income generated through the iOS app. Your cut should be similar. I guess that does not apply for sale of goods. Still, that’s your ballpark figure.

      Get written commitment and partial payment up front with defined milestones for additional payments.

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        yes, this totally makes sense. I always lacked at business skills and that’s why I get confused about handling non technical matters. Is there any good book or blog post to open up my mind regarding subjects like this?

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        This seems more appropriate for barnacles.