The first step to creating your mobile app production budget is to define and quantify the mobile app development costs. As with any other product, these costs can be divided into two categories: fixed costs and variable costs. Fixed costs almost never change over a given time period and are the same no matter how much or how little product development is done. The cost of leasing office space for the period of mobile app development or purchasing the MacBooks you’ll use for development are two examples of fixed costs.
Variable costs vary with the workload. In development, an important variable expense is the cost of the outside app developer, which can vary from $70 to as much as $300 an hour and depends on the complexity of your project. You can hire or contract with a developer and subsequently discover that your great new tech monkey doesn’t actually have the skills, qualifications, or experience needed to complete the job the way you expected. Or it happens that the developer makes a mistake planning the project, and it takes 250 hours of work rather than the projected 200 hours. This is why it’s reasonable to inflate your calculated mobile app development costs by 20 percent, especially if you hire outside developers. It is not a big difference, but if you find you have to increase expenditures, it won’t be an unpleasant surprise and you’ll already have the budget approval.