How do companies calculate the cost of an app is the typical used by app that companies to calculate how much your app is going to cost and let's take a look at that right now.

1. BEST COST CALCULATION
TO MAKE A MOBILE APP
IN 2020
So how much does it really cost to make an app? I think that question has been asked Lake 5
gazillion, times right and adding anybody was going to ask me that question again. I'm just
going to do this with you. I'm going to break down the exact strategy to calculate the cost of your
app and launch it in the most cost-effective way to stick around till the end of this weekend. So
let's dive into this right now and I get this question all the time. How much does it cost to create
an hour? And I'll tell you right off the bat there is no magic number instead. There are multiple
factors that play to determine the cost of not entrepreneurs and spend anywhere from 5000 to
500000 in order to mobile app development services that they want but don't worry not all
apps are created equal. Some are simple costing less than others are more complex.
How do companies calculate the cost of an app is the typical used by app that companies to
calculate how much your app is going to cost and let's take a look at that right now. So The way
they do it is by calculating and please do not mind the it's been awhile since I've actually written

2. something anyways, so they look at the cost and they look at the hourly at effort and multiply
that with the hourly cost, so that is typically used by most app that agencies one. Is that how
many hours are they going to be spending on that specific feature in order to completed and
then multiply that what is their hourly cost the ticket example to break this down even further.
Let's think that you have an average has five core features in it, right? So let's say feature 1, 2,
3, 4 and 5. You know, this is what the app Dev companies with tank off. Is that how much time
how many hours would they are spending on each feature?
Cost= Hourly Effort * Hourly Cost
1st
feature Completed = 50 Hours
2nd
feature Completed = 40 Hours
3rd
feature Completed = 70 Hours
4th
feature Completed = 100 Hours
5th
feature Completed = 80 Hours
If first company is going to charge you $50 for hour and another company charging $120 for
hourly to fill the company. So that's the company number one is going to charge you $17,000 to
fill the company. Number two is going to charge you $40,800. And the reason for that is
because their hourly rate the hourly cost is substantially different that they're charging at $50
per hour and they're charging at 1 $20 for all this is behind the scenes how they typically
calculate the cost of your cap light to this is for a simple outfit S5 features a complex that might
take a look around. It's a $1,500 for the development and the cost for that would be let's taking a
quick look at that as well.
$1500*$50=$75k
While that's a really bad writing anyways gets the message across right? So if you look at it for
the second company $1500*$120=$180k that's going to be a hundred and eighty KY so that's
the difference two kinds of fat two kinds of companies. These are the numbers that you come
up with. So far the complex that it’s going to cost you $75,000 companies one company and the
company B. It's going to cost you $180,000. But now the question is that how did these
companies define their hourly rate? See I am so why is companies charging $50 while company
is charging $120. Let's talk about some of the factors that impact the hourly rates the clearest
distinction between the hourly rates difference is going to be based on location.
The cost will vary greatly if you go out to a company which is based on a few s versus a
company which is based out of Ukraine or India in the average cost of a company, which is
based on a few Wes is rough Iran won $50. If, you go to Europe that's going to cost roughly
around $100. If you go to Australia another $120 to $150 range and in India ideas around
running anywhere from $20 to $80 depending on the quality sewer basic cabin Indian might
start at the tip $10,000 and a similar app in the US might be tough to get around in a $50k or
$70k the second factor, which will impact the cost of your app is going to be the platforms

3. number of platforms that you're considering for your product. If you're going with just Android
auto just I was the cost would be different. But if you're going for both the platforms the cost will
differentiate it also differentiates from a going with the native app vs. A hybrid application.
Important factor would be the number of features like we took a look at this. Example is
that one two, three four and five features all of them had a different hourly effort based
on which we calculate the total of only afford, right? So the features that do you want
people to sign up using a social platform or just an email or phone number all of those
factors? And then do you want to add any location based services? Do you want to
integrate a payment Gateway router app involves streaming multiple languages ads
chatting or offline mode? So all of those factors when play a huge role in defining what's
going to be the cost of your app near the number of features the complexity the number
of Integrations, they won't play a major role in defining how much effort would be spent
in building your app. And then into Anvil actually in back the cost of your application the
fourth factor, which plays a huge role is the design aspect of your application.
You want a bare-bones design or do you want amazing beautiful more than premium designs
the user interface and user experience driven apps they definitely stand out but they come at a
price Tag Division complexity leads to more effort Boston back in and front end hands leads to
your app being more expensive V accuracy and experience the app Division Series usually
have different hourly rates based on different skill-sets each member like a developer Castro
designer or a solution architect vill have different hourly rates in a decent-sized company will
typically have anywhere around for 5 up to eight people working on a single project. These are
the five major factors that impacted cost if you that but you should also consider other factors
like maintenance cost infrastructure cost and it's important to make sure that you have a
maintenance contract Post Release so that your app is Winter proof against any new updates
by the operating systems, which might just leave your app useless. If not handled properly
symptoms of infrastructure your consideration to work the service elections and database
election or any major Integrations with ER PR crn all of these laxity add up to the cost of your
app. All right. Let's talk about the two cost-effective to build Launcher app. The number one is
MVP minimum weighable product start with the limited set of features your core competency.
What is that? One feature that provides the maximum value to your users start with that and
then build slowly apps like Amazon Uber Facebook Instagram, they all started as an MVP for
the limited set of features and look at those Brands today and the number of features that they
have to start with an MVP II approaches the SAS approach. Now you may not find a SAS option
for all kinds of apps out there, but there is plenty of subscription.
Is platforms out there today in Assassin Wireman? The service provider distinctly hosts the app
for you? They will run it hosted maintained and updated them. All you have to do is pay a small
fee to set up your account or a small monthly fee. Whatever, monetization strategy is to explore
a few options. See what works best for you based on your research and then take action did not
get stuck in the research Loop. All right now, so if you found this video hell full match that
subscribe button to hit the bell I can so that you get notified every time there's a similar video

4. that comes out and make sure that you drop a comment below and let me know what you think
of this really and what is it that you want to watch in the next video do not forget to share this
with you with a friend who might find this information useful and the. Being said, I will see you in
the next video.