Is Birdhouse Coffee App Costing More Than It's Worth? A Cost-Benefit Analysis

TLDR

You manage a coffee shop, constantly filled with customers. Your business is thriving, but you know you could reach more people if you had a branded app. Should you work with a custom developer or use a white-label solution? In today's world, having an app is crucial for providing convenience to customers and growing your business. However, custom development can be time-consuming and expensive. White-label apps offer a budget-friendly alternative to get your brand on customers' phones. As the owner of Birdhouse Coffee, you want what's best for your business and customers. Let's compare the pros and cons of custom app development versus an affordable white-label solution for Birdhouse Coffee. Weighing the options helps you provide excellent service without breaking the bank. Let's dive in and determine if your current strategy is costing more than it's worth.

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Birdhouse Coffee's Current Mobile App Strategy

Costing More Than It's Worth?

Birdhouse Coffee currently utilizes a custom mobile app developed by Craver Solutions which starts at $212 per month. While a custom app may seem appealing, the total cost of ownership over time can end up costing significantly more than anticipated without providing additional benefits to justify the high price tag. With multiple locations, the fees from Craver quickly add up to a sizeable monthly expense that cuts into profits.

A More Affordable Solution

White-label mobile app builders like Per Diem offer an affordable alternative starting at $199 per month. Per Diem's solution includes everything from loyalty programs and e-gift cards to third-party delivery integrations and payment processing -- all for less per month than Craver's services. For multi-location businesses, Per Diem charges only $99 per additional store, keeping costs low without sacrificing features.

Exclusive Features and Rewards

In addition to lower costs, Per Diem provides opportunities to boost customer engagement through exclusive in-app rewards and referral programs. Per Diem makes it easy to offer first-purchase discounts, free items after a certain number of visits, and other incentives to keep customers coming back. Integration with Square Loyalty also allows businesses to create customized loyalty programs to reward their biggest fans.

A Familiar Experience

While switching from a custom app to a white-label solution may initially seem like a compromise, Per Diem's interface provides an experience similar to major brands like Starbucks and Sweetgreen. Intuitive navigation, streamlined ordering and payment, and seamless pickup or delivery make the app feel polished and professional. For customers, the transition is barely noticeable while significantly reducing costs and increasing benefits for the business.

With lower costs, additional features, and a familiar user experience, a white-label mobile app from Per Diem provides Birdhouse Coffee an affordable way to strengthen customer loyalty and boost long-term profits. By reevaluating its current mobile app strategy, Birdhouse Coffee stands to gain significant savings and benefits with a solution tailored to meet its needs.

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The Costs of Custom App Development

Design and Development

Designing and building a custom mobile app typically requires hiring a team of specialized developers and designers. According to Glassdoor, the average salary for an iOS developer in the US is $105,000 per year. Android developers make a comparable amount. Designers, project managers, and quality assurance testers also need to be factored into the total cost.

Time Required

The time required to design, develop, test, and launch a custom mobile app can range from 3-18 months, depending on complexity. During this time, developers and designers must be paid and overhead costs must be covered. For a basic app, development may take 3-6 months and cost $50,000-$100,000 or more. A complex app with advanced features can take 12-18 months and cost $200,000-$350,000 or even higher.

Maintenance and Updates

Once an app is launched, ongoing maintenance and updates are required to fix any issues, enhance features, and keep the app compatible with new operating system releases. Updates and maintenance can cost at least $10,000-$25,000 per year for a basic app and $50,000 or more annually for a complex app.

In summary, the total cost to design, develop, launch, and maintain a custom mobile app typically starts around $100,000 and can easily exceed $500,000 or more over 2-3 years for a complex app. For small businesses on a budget, the high cost of developing and maintaining a custom mobile app in-house is often prohibitive.

A More Affordable Option: White-Label Apps

Rather than spending a fortune to build their own custom app, many businesses are turning to affordable white-label app solutions. White-label apps provide a ready-made mobile app that can be customized with a company's branding and content. The implementation only takes days or weeks rather than months, and ongoing maintenance and updates are handled by the white-label provider for a low monthly subscription fee.

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Benefits of Choosing a White-Label App Builder

Lower Costs

As a business owner, reducing operating costs and maximizing profits should be a top priority. A custom mobile app developed by an agency like Craver can cost tens of thousands of dollars upfront and additional fees for updates, maintenance, and new features. In contrast, a white-label solution provides an affordable, subscription-based model starting at only $199 per month. There are no hidden fees or surprise costs to worry about.

Faster Deployment

Per Diem’s streamlined development process allows a mobile app to go live in under a week. Waiting weeks or months for an agency to develop, test, and launch a custom app results in lost revenue and missed opportunities to engage customers. With Per Diem, you can get your app into customers’ hands quickly and start benefiting from it right away.

Customized Experience

Although Per Diem provides a white-label solution, the appearance and functionality of the app can be fully customized to match your brand. Customers will experience a mobile app tailored to your business, increasing brand loyalty and retention. Per Diem’s simple customization options do not require any technical skills, allowing you to easily make updates whenever needed to keep the app fresh.

Essential Features Included

Per Diem provides an array of features essential for an e-commerce and loyalty app including gift cards, social login, push notifications, subscription billing, promo codes, an Instagram feed, and commission-free delivery integration. These impactful features are ready to use upon launch, so you can start engaging customers and driving revenue immediately. Additional features can be added as needed to match your unique business needs.

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Per Diem vs Craver: A Cost-Benefit Analysis for Coffee Shops

Lower Costs with Per Diem

Per Diem’s white-label mobile app builder offers affordable packages starting at $199 per month, including features such as e-gift cards, social media registration, and transactional push notifications. In contrast, Craver’s custom mobile app development starts at $212 per month with additional fees of $150 for each extra location. The total cost to develop a Craver app can amount to thousands of dollars over months.

Faster App Development and Delivery

In today’s fast-paced world, quickly deploying an updated mobile app is crucial. Per Diem’s streamlined app-building process allows the apps to launch in under a week. Craver’s custom development, however, typically takes 3-4 weeks for an app to be completed and delivered to the client.

The longer wait time with Craver means missing out on opportunities to boost customer engagement and incentivize more purchases sooner. For Birdhouse Coffee, launching a new app quickly could drive more traffic and revenue, especially with promotional features like mobile coupons and loyalty programs.

Enhanced Customer Experience

A white-label app from Per Diem provides an intuitive user interface and experience comparable to large brands like Starbucks. Features such as in-app loyalty rewards, referral programs, and social media links allow for a highly personalized experience. While Craver does enable personalized perks and consistent savings, their multiple complex screens and sections tend to slow the app experience.

For coffee shops aiming to build a loyal customer base, an app that engages users and makes them feel valued is essential. Per Diem's solution helps achieve this through a mix of rewards, sharing options, and an overall simple yet professional design. For less cost and time than developing a custom app, coffee shops like Birdhouse Coffee could gain a powerful tool to boost retention and create brand advocates.

With lower costs, faster delivery, and an enhanced customer experience, coffee shops can expand their digital presence and better compete in an increasingly mobile world. The savings in both time and money may well outweigh any perceived benefits of building a custom mobile app from scratch.

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Final Thoughts

As we have seen, Birdhouse Coffee's current mobile app built by Craver, while functional, may be costing more than it's worth. By switching to Per Diem's white-label solution, Birdhouse could gain an app with a more intuitive interface and faster performance for a lower monthly cost. Per Diem's app also provides valuable features like integrated loyalty programs and faster rollout time - Starbucks-level quality at an indie shop budget. At the end of the day, the numbers speak for themselves. We hope this analysis has shed light on the potential benefits of re-evaluating your mobile strategy. Isn't it time to ask yourself: is your current mobile app costing you more than it's worth?

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