Launching a SaaS product is typically a big investment. While the cost to develop a SaaS product is largely going to depend on the complexity of the application, it can be beneficial to understand standard ranges in cost so you can explore the right option for your business.
Consider these key things before making an investment.
You can work with an agency or tackle the project in-house. The latter option will likely lead to high overhead costs, making a software development agency a more economical choice for many startups and small businesses. However, when selecting an agency, you may want to consider the following things that could affect the SaaS product’s development cost:
• The size of the agency, as larger agencies may charge more
• The number of senior staff involved in the project, as their fees tend to be higher
• The agency’s location, as agencies with locations solely in large cities may charge more
The number and complexity of features included will also impact the cost of the project. Many software development agencies base pricing on the number of screen variations or pages that need to be designed and developed, so that can play a factor in the price of the SaaS product’s development. Additionally, leveraging APIs can help reduce development costs as your development vendor won’t need to replicate functionality that’s readily available. On the flip side, existing solutions like WordPress may allow you to cut costs in comparison to customizable technologies, but these templated offerings will ultimately present a lot of restrictions.
The specification document that your software development agency or in-house team creates will determine the complexity of the application and, therefore, the complexity of the development process and its cost. It’s important to note that you should pay attention to the deliverables and quality assurance (QA) measures included when comparing estimates. An agency that quotes your project with a lower budget may be taking shortcuts or skipping valuable steps. When it comes to the QA process, we recommend that a SaaS product is developed using Continuous Integration and Continuous Delivery (CICD) to ensure it’s less prone to bugs throughout its lifetime. While it’s an upfront cost, it offers a significant return on investment and primes your company for sustained growth.”
Explore your options and their costs.
“If you’re looking to keep costs low in launching a new SaaS product, you may want to consider developing a minimum viable product (MVP). By our calculations using Glassdoor and ZipRecruiter salary data, developing an MVP in Silicon Valley would take about 18 weeks and a lean team of a full-time full-stack developer, a part-time UI/UX designer and a part-time project manager would cost between $72,720 and $112,752. If you decided to start with an MVP, we recommend keeping it under 40 unique screens to keep costs low while still providing a useful, intuitive application.
According to experts, developing a complete SaaS product can exceed $500,000. The price tag will ultimately depend on the application itself and what its development entails, but who develops the SaaS product can also impact the cost. In-house teams can be a costly overhead expense, making it a less desirable option for most startups and small businesses. On the other hand, some firms may also charge high fees, so it’s critical that you pick the right software development agency if you outsource your application. At Geekbears, our development services’ fees include:
• UI/UX design services starting at $5,000, including deliverables such as site analysis, benchmark analysis, sitemap, user personas, user flows, low fidelity mockups, style guide, high fidelity mockups, clickable prototype, product requirement document, technical assessment and design handoff, and development estimates
• Web SaaS application development starting at $20,000, including deliverables such as customized front-end, customized back-end, user registration and profile management, admin dashboard, analytics dashboard, integration with APIs, AWS setup, and repository setup
• Mobile SaaS application development starting at $25,000, including deliverables such as customized front-end, customized back-end, user registration and profile management, admin dashboard, analytics dashboard, integration with APIs, AWS setup, repository setup, and launching it to the App Store or Play Store for iOS and/or Android devices
Follow these final recommendations.
Cost is going to be one of the biggest factors in your decision to develop a SaaS product, so it’s critical that you take these options and considerations into account before you decide who will develop the application. In order to make the best choice for your company, we recommend getting several estimates from software development companies while also reviewing their client testimonials and asking those vendors pointed questions. It’s also important that you’re comparing apples to apples — or understand the differences in technology, deliverables and quality assurance measures — when reviewing quotes before selecting an agency. Some projects may appear to cost less, but the reason for that could be that you’re getting less than what another agency is including in their scope for the project. These steps and considerations will help you pick the best software development firm for your company’s needs and budget.