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Over the years, I have followed the stories of more than a hundred startup founders and found one thing in common. Every one them regretted not doing this earlier. Surprisingly the moment they started doing it, their revenue started to grow exponentially.
It is a common regret of startup founders not to raise the price of their products soon. While raising the price of their products, dilemma occurs like if people are going to buy them or not. Almost always, after raising their price, the sales increases too.
In today's newsletter, I'd like to give you an overview of how you can raise your price for your business and focus on revenue growth.
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Standard Pricing and Why to Avoid it
In the beginning of a new business, it is common to think that the price should be kept low. Nobody knows your business on day one and why should they pay so much money? This is often a common mistake.
Primarily because when you start a business serving WebAR – you're already having the advantage of offering a world class service that can transform almost any business and scale their revenue. So the ROI is quite huge compared to what you're offering.
Breakdown of AR App development cost for Business
75% buiseness leaders anticipate to adopt AR and VR by 2023. Even if we consider this is an aggressive forecast, a small fraction of it, if becomes true, can potentially bring a ton of business to adopt AR only in 2023.
Adopting AR sounds fun but it can easily start a train of expenses. Let's have a quick look at them:
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Defining AR strategy and derive creative concept – Business management
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Hire UX designers – avg. cost for AR app design – $3,000 -$30,000
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UX design cost goes 2x – design for iOS and Android app
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Hire 3D artist to build 3D assets (e.g. Ecomm) – between $10,000 – $50,000 (25-50 items)
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Hire Android AR app developer – avg. cost can go between $10,000 – $300,000
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Hire iOS AR app developer – avg. cost can go between $10,000 – $300,000
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Hire Testers for testing – avg. cost can go between $5,000 – $10,000
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Cost for Android AR app publish in Google Play Store – $25 (one time)
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Cost for iOS AR app publish in Apple Store – $99/year
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Bug Fix, Re-publish, Add new features – extra cost to be considered (2x cost combining Android and iOS versions)
Overall, to publish an AR app, this is the bottomline time & effort associated for a company:
Range of estimated of cost (for iOS & Android): Between $30,000 – $700,000 or more.
Range of delivery time: Between 3 – 6 months or more.
Expected download rate: Avg. app gets 4% download (US app store, 2022)