Technology is changing at the blink of your eyes and so is the demand of your customers. However, creating and building infrastructure to keep up with the changing tech ecosystems and demands is not feasible for all online businesses.
That is why white label software has emerged as the best option for agencies and independent resellers who are already into software development or are planning to delve into it in the future.
Now you must be wondering why focus on “mobile apps” out of all the white label software reselling options. You can read our blog on ‘The benefits of white label mobile app development for agencies’ and get an answer to your question.
If you are already convinced about the significance and benefits of reselling mobile apps and are looking for some help with pricing strategies, then stay tuned. Continue reading and get a comprehensive guide on the pricing of white label software.
In this blog
- How does software reselling work?
- Why is the right pricing strategy important for resellers?
- Types of software pricing models
- Best pricing strategies for white label mobile app resellers
- How to ensure the best prices for your customers?
- Frequently asked questions
How does software reselling work?
Reselling SaaS (Software-as-a-Service) solutions is a fascinating business idea. You get to resell a product and reap its benefits without having to actually research, create, upgrade, or maintain the product.
But how does software reselling really work?
In most cases, resellers sell a white label software that is free from explicit branding of the SaaS provider. It gives them an opportunity to rebrand and resell the software product as their own. This is also true for white label mobile app development solutions.
In a typical arrangement, a white label SaaS provider creates and offers the products to resellers and agencies at a given cost. (Note that some providers may also be selling the products to individual customers under a B2M (Business to Many) model of operation.)
The agencies then repackage the product or platform and add their own pricing and branding elements. Next, they go on to offer the product to other small business owners or customers.
The customers buying the product or services deal with the agencies and pay them accordingly. As evident, unlike affiliate partners, resellers do not endorse the product for commission but rather sell it as their own and make direct profit through sales.
Why is the right pricing strategy important for resellers?
It might not be an exaggeration to say that everything in business comes second to pricing. If your product or service is not priced right, it may see the light of the day, but it may not experience the thrill of all the seasons as a platform’s survival is affected greatly by its pricing strategies.
Similarly, resellers cannot overlook the importance of right pricing as they struggle to survive between the original developers of a product or service and the other competitors who might be fighting for their share of business and profits.
Moreover, pricing your products/services strategically becomes important as it does the following:
- Creates first impressions on customers and inspires them to engage with the offering.
- Underlines the value your product/service is likely to offer to the customers.
- Allows you to strike a balance between customer-satisfaction and profits.
- Drives sales, revenue, and profitability and ensures overall growth of the brand.
- Prevents customers from migrating to competitors or abandoning your brand.
These are some of the many reasons why a reasonable pricing strategy is important for your reselling business. Continue reading and learn how to achieve it.
Types of software pricing models
In order to understand the top software pricing models, we will have to learn about the popular classifications of software. Based on pricing and licensing, software pricing can broadly be categorized into the following two types:
1: Licensed Software
This type of software is often sold individually or in the form of an application dedicated for a given equipment or system. It often follows flat-rate and straightforward pricing. Moreover, it comes with installation or provisioning fees and maintenance fees and is bound by the EULA (End-User License Agreement). While payment is often made upfront, there is less scope to get a customer to return for repeat purchases.
2: Subscription-based Software
SaaS or cloud-based software is one of the most popular methods of licensing and purchasing software. Here, customers rent the service and often pay a recurring fee at periodic intervals. Therefore, EULA gets replaced with EUSA (End-User Subscription/Service Agreement). This allows businesses to engage customers for a long time and earn their loyalty.
The SaaS solution can further be priced based on the following:
- Freemium model: Some components are offered for free while premium features are unlocked after payment of a fee.
- Usage or consumption fees: This involves charging customers based on the usage of the platform and its offerings like the volume or count of transactions, transfer of data, number of unique customers or subscribers, storage space allocation, etc.
- Service requirements: Here, customers are charged for dedicated services like onboarding or software integration charges, expert professional services, maintenance services, customer support services, and more.
These are the broadest classifications of pricing in the software industry. As evident, the subscription-based model is more feasible and popular among white label app resellers. It allows you to earn recurring payments, establish a long-term relationship with your customers, and get the worth of the new updates or maintenance services that you offer to your customers.
Best pricing strategies for white label mobile app resellers
It is noteworthy that each business is unique. Therefore, their customers, markets, goals, and other characteristics, traits, and prerogatives also tend to be unique. Similarly, the pricing strategy for different businesses will also vary based on their personalized goals and vision.
Therefore, you must gather all the knowledge but trust your own learnings and experiences as much. However, there are some popular methods and techniques that you can leverage to ensure safe and viable pricing strategies for your business. Let’s discuss them:
Strategies based on price differentiation
Price differentiation is the practice of offering different prices to different customer segments based on factors like location, demographics, buying behavior, and so on. As evident, your targeted market and audience play a pivotal role here. Based on this factor, you can adjust your pricing as per the following strategies:
- Differentiation: High prices with large target audiences and high differentiation.
- Focused differentiation: High prices with small target audiences and high differentiation
- Cost leadership: Low prices with large target audiences and low differentiation.
- Focused cost leadership: Low prices with small target audiences and low differentiation.
- Integrated cost leadership: Varied range of pricing and targeted audiences with low level of differentiation.
Strategies based on common pricing tactics
Businesses also use various tactics to make their pricing more appealing to their customers. Based on such tactics, you can go with the following common pricing strategies:
- Cost-plus pricing: Here the cost of purchasing and maintaining the product/service is considered by businesses. It is then resold at a mark-up price to the end users or customers.
- Value-based pricing: Here price is set according to the product/service’s perceived or estimated value. It depends on how interested your customers might be in your offering.
- Competition-based pricing: The focus here is on the existing prevalent prices in the industry. If you want to enter a highly saturated space, you should explore the prices your competitors offer and try to beat that.
- Premium & freemium pricing: Premium pricing is done to position the product as a luxury or esoteric product. Whereas, freemium is the practice of offering some features of the product for free while charging customers for other “premium” or advanced features.
- Penetration pricing: Here, businesses enter the market with a low and lucrative price and capture the entire market. The cost can later be adjusted as per the growth and demand of the product/service. However, it can backfire if customers do not stick around.
- High-low pricing: Here, the product is often launched at a high price. Thereafter, it is offered at lower costs in the name of discounts, coupons, offers, etc.
- Dynamic pricing: Here, businesses fluctuate the price of the product/service. This is also known as surge pricing, on-demand pricing, etc., where the costs are adjusted based on the demand and other factors. For example, taxi booking apps often charge more during rush hours.
These were some of the many pricing strategies that you can use for your business. You can experiment with different strategies or A/B test your pricing packages. Pick whatever suits your goals and aligns with your targeted market.
How to ensure the best prices for your customers?
The first step towards offering optimized pricing to your customers is ensuring a good white-label resale deal yourself. Look for a platform that ensures competitive pricing and offers reasonably designed product packages that suit your demands.
However, do not compromise with quality. Go with a solution that strikes a balance between affordability and excellence. Make sure they have a state-of-the-art technology stack and a reliable and trusted solution to offer.
Also look for range as the more markets you cover, the more profits you will reap. For instance, the platform should offer multiple tools like an eCommerce app development solution to a social media app builder, and everything in between.
You can also get in touch with the representatives of your desired platform and discuss your needs with them. Find a platform that allows subscription-based pricing as it is the most popular pricing model when it comes to SaaS.
Also ensure that the platform does not really interfere with how you rebrand, price, and resell their product. Once you have such a product, go on to consider the needs and demands of your customers.
Follow the tips and strategies discussed above and offer pricing packages and options that incorporate and suit most of your customers. Go on to resell the app development solutions and build a loyal clientele.
That was all about pricing your white label SaaS solution. Optimize your pricing accordingly and resell mobile app development software in a way that turns out to be a win-win for you and your customers.
However, if you are still looking for the best white label mobile app development SaaS or want to switch from your existing white label partner, then subscribe to AppMySite’s free white label reseller program that offers all things apps.
Get an end-to-end no-code solution for app development and offer it to your customers. Enable them to design and build apps like a professional and grow your agency. Else, simply create and resell multiple apps and get a dedicated Workspace for managing them all.
The choice is absolutely yours. Pick the route that suits you the best and implement it for your business. Enter the app market with confidence and increase your clientele and revenue without limits.
Frequently asked questions
What is a white label software?
White label software is fully customizable software created and sold by one company to others that can rebrand and resell it as their own. Such software is often sold as part of a subscription that is periodically renewable (or may be accessible for a lifetime). Once the reselling agencies or businesses get access to the software, they can resell it to their own customers and clientele under their own brand name.
Can I make a profit by reselling mobile apps?
Yes, you most certainly can. Reselling apps is one of the best methods of creating additional revenue channels, growing your business, and expanding your clientele. In fact, it has unlimited benefits that you can tap into. As smartphones have become our go-to solution for all our needs, app development & reselling have become one of the most lucrative business ideas. You can read our blog and find out why reselling apps and DIY app development solutions is beneficial for your business: 7 reasons why your agency should resell mobile apps.
How to price a white label software for reselling?
Before worrying about pricing your white label software product, find a B2B (Business-to-business) white label platform that offers competitive pricing and subscription plans and does not really interfere with how you price, rebrand, and resell the products. Next, assess your target customers and study the ongoing trends of the market. Factor in the cost of offering support to your customers and marketing the product to new markets. Consider all the information and then finalize a price that suits your goals. You can go through the blog above to learn more about pricing your white label product strategically.
What does it mean to localize the product pricing?
We know that not every country deals in the same currency. Similarly, not every nation offers the same economic benefits and opportunities to its citizens. Therefore, when pricing your product, take factors like pay parity, price sensitivity, customer personas, market saturation, competitor pricing, and other related factors into consideration. Offer price points that suit your goals and your local customer’s preferences. You will be able to localize your product pricing and optimize it for your domestic customers.
How can I become a white label mobile app reseller?
You can partner with a white label app development service provider like AppMySite and become a mobile app reseller without any hassle. All you have to do is get onboard and you can start building apps immediately. Either create and sell white label apps to customers or offer the white label no-code DIY app development tool to your customers and enable them to create apps on their own. The choice is yours. You can try out the platform for free and go on to commit when you are ready.