Issue link: http://read.dmtmag.com/i/100792
for this at $10,000-$20,000 annually. You can also add another $1,000$5,000 for hosting. Upkeep costs. Unlike websites, mobile phones upgrade their operating systems regularly, forcing you to upgrade your app for compatibility and to avoid bugs. This will cost around $1,000-$5,000 annually. You���ll probably need to upgrade and enhance the app along the way in response to user and internal feedback, so you should plan on adding another $5,000-$15,000 per year of additional programming costs. This brings the total first-year cost for the app to $31,000 at the low end and $90,000 at the high end, with an additional $17,000$45,000 per year for upkeep. To recoup the money through direct-to-consumer sales, you would need to acquire 60-180 customers that spend a minimum of $400 in the first year. Before you say, ���Wow, that sounds easy,��� let me give you a quick stat: You���d need approximately 40,000-80,000 app downloads to achieve those numbers. With those stats and figures, it���s evident that you really need to have a key strategy in mind, and that creating a truly active mobile app is not a small effort. You need to really think before you launch, and look beyond the development costs to understand if it���s really worth it for your winery to ���have an app for that.��� My personal recommendation is this: Don���t build an app unless you have a serious digital team in place ��� and less than 0.5% of wineries do. Instead, use an e-commerce company to build a mobile-friendly version of your website for a minimal investment of $500-$1,500. Paul Mabray is the chief strategy officer at VinTank (www.vintank. com), based in Napa, Calif., which helps wineries connect with consumers through digital technology. Comments? Please e-mail us at feedback@vwmmedia.com. w w w. v w m media.com J a n - F e b 2 0 13 | V I N E YA R D & W I N E RY M A N A G E M E N T 111