How to negotiate mobile app fees successfully

by M Ismail Wed Feb 12

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Often it’s hard to negotiate app development costs as founders often are not quite sure about features, therefore leaving developers giving poor estimates!

Be Clear on Functionality

Proper negotiations can only happen when functionality is absolutely clear. The ideal time to negotiate is after wireframes and user stories are written out. Unsure how to design a wireframe or list our technical user stories? Then hire a CTO or Product Manager!

Hire a CTO or Product Manager

If it’s your first time building a digital product, I recommend you hire a experienced product manager or CTO who can help you document your requirements. Explain the project to him/her and let him build a
documentation (ideally working in with designer) to b clear on requirement.

Negotiate Resources and Hours

Negotiate on how many resources you will be allocated and hours of those resources for project! This is the best way to compare quotes!

Also make sure to negotiate in a QA resource! Nothing works perfectly at first when developed. It takes time and updates in order for it to settle down. Its important to have a quality assurance resource to spot out the problems (especially if developing overseas!).

Then Negotiations on Payments Terms

Pay half upfront and half on completion: Trust is an important factor when hiring someone but it never hurts to have insurance. Start negotiations off with payment terms. Suggest paying half of the amount in advance and remaining end of month.

Beware: Fixed price is not normal in custom web development: The price of an app depends on its functionality. The more complex you want your app to be the more money it’ll require in order to work. When building very innovative ideas remember fixed price is not the norm

Be clear on Warranty & Maintenance costs

One of the major concerns of every buyer, how long will it work like it’s supposed to? That’s why you need to take the warranty into consideration too. Be clear if things break who will be responsible?
Also in web development maintenance is absolutely essential! It is something that is pretty common these days and is done on a monthly or quarterly basis. The question that arises here is the length of the
maintenance deal and the hourly payment rate which you need to be clear on!


Above are some high level pointers you need to absolutely include in your web development negotiations! If you want someone to be part of that conversation with you, please feel free to yell out, as we will be more than happy to help you seal a fair app development contract!


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