Why Do the Estimates Differ?

banner background

There is large amount of different information in the web concerning the prices for the mobile applications development or website building. People who are getting ready to start a new project often turn to various sources to understand what budget is required to create their idea. But as the information comes from different angles of view, it is hard to come up with something certain.

Basing on the statistic data from different sources, leading Jelvix analysts conducted our own research about the reasons of the price ranges of different contractors.

Why do the estimates differ?

First of all, when providing an approximate evaluation of the required scope of work, contractors depend on customers project description. If the explanation of the idea is vague and uncertain, different contractors will interpret it in a different way, and this will lead to a severe distance between their price expectations. There is ample evidence that preferably not to put those contractors who provide low estimates on the first place in your list. That may mean that he could’ve been mistaken about the amount of workload required to provide a high-quality result. РЎlient should be sure that he is on the same page with the contractor and that the contractor is experienced enough. Any issues should be prevented before the start of the cooperation as they may cause disruptions during development process. By the way, do you know how to save startups from failing? No? Check the “The covenant of Icarus”.

Company or an Individual – another cause of price range differences. Many sources adhere to the opinion that it is far more preferable to work with a company than with an individual. Responsibility and communication level is far higher, as company always cares a lot for reputation and feedbacks. Individual, however, can easily close his activity in case if he’s not up to the presented task. In addition, companies possess a score of specialists that would be competent in your question and will stay in touch on the highest grade possible. Company can provide a wide spectre of services, starting from design and architecture and finishing with testing and QA with further product support. Economy in this case is also quite questionable: choosing an individual because of the low price, the client risks to overpay 2 times, in case if contractor appears to be incompetent and won’t finish the task.

Additionally, it its obvious that the price varies from country to country. In reality, hourly rate in more developed countries is higher, which is caused by the medium salary in these countries, education level, etc. Delivered product quality and communication level also varies from location to location. Our market researchers compared the prices of the development by regions. You can see the result below:

  • North America – $40 – $130
  • Europe – $25 – $80
  • Australia – $30 – $70
  • Africa, Central/South America, Middle East, Central Asia – $15 – $25
  • India, Pakistan etc. – less then $10 – $30.
As the range is very wide, the customer should be careful when picking the contractor. It's better to avoid choosing the lowest price, though it attracts so much on the first glance. It may cause losses later, when a low-quality product is provided, and bringing it to a good form will take lot more than to order the same in the established company, but for a higher price, initially.
Rate this article:

Contact Us

Please enter your name
Please enter valid email address
Please enter not more 500 chars

Thank you for your application!

We will contact you within one business day.