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What is a right pricing model for you?

3 min readJul 12, 2021

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This is one of the most sensitive post for us & for our customers.

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Process vs Outcome — Image Courtesy James Clear article

What is right approach for you?

  • Outcome focused approach
  • Process focused approach
Outcome focused approach. Image courtesy — Noun Project.

Outcome focused approach:

  • To deliver a outcome to end-customer, we guesstimate what efforts we will require & whether that will deliver ROI to customer.
  • Solution approach is determined by the ROI for the customer.
  • We have a flexibility to choose a path to achieve the outcome.
  • Team is hands-off during the process of building the product.
  • Transfer of the source code & proprietary materials at the completion stage.
  • E.g, — PainGuru
Process focused approach. Image courtesy — Noun Project.

Process focused approach:

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  • To deliver a value to end-customer, we guesstimate what efforts we will require.
  • Solution approach is determined by the scale & future prospects.
  • We work closely with customer’s team & together navigate a path to achieve the outcome.
  • Team is hands-on during the process of building the product. They actively contribute & suggest on best practices & guide why certain choices to be made.
  • Source code & other materials are shared with client team from Day 1.
  • Extendability & scalability of the platform or solution is very important. Focus is more towards customer delight, stickiness & experimentation.
  • We build, test, ship & iterate fast. Focus is more on the core value & not the entire ecosystem of the product.
  • E.g, CODA, Game Plan

Answer these questions for your product?

  • Should the product or platform scalable?
  • Should the product or platform extendable?
  • Should the product need data security compliances?
  • Does code quality matter to you as a business?
  • Do you need to launch a product in one go?
  • How important is speed to market for your business? Iterative approach.
  • Do you have any strong preference on technology? Why?

Let’s take two very real but hypothetical customers here:

  • Dr. Miller is a very popular chiropractor. She writes books, publishes newsletter & has a decent medical practice. She needs an app where she can book consultations, recommend books and exercise equipments. For Dr. Miller outcome focused approach works better. For that approach, we are able to share estimation which can be a fixed cost as well.
  • Ms. Tripathi has a rich experience in field of medical operations. She is part of nation’s one of the largest healthcare providers group. She aspires to build a platform. Predominantly an app where doctors can book consultation, recommend books or material, and equipments. For Ms. Tripathi process focused approach is REQUIRED. For that approach, we generally plan product in sprints. A dynamic pricing is more suitable here.

Our pricing broadly depends on following parameters:

  • Number of Sprints required
  • Number of personnel & their expertise level
  • Level of detail or finesse
  • Chances of rework due to APIs or Design changes
  • Complexity of design

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Arpan Desai
Arpan Desai

Written by Arpan Desai

Mobile Strategy & App Growth Consultant at MobileFirst. Available for consulting — Email arpan at mobilefirst.in