How-to to run a software consulting business

Fixed vs Hourly Pricing

by shabda on October 10, 2011

You already know what your right hourly price is. However many clients are going to request a fixed price. Some may request this even before they have a specification. :)

You can give a fixed price if

  • The specifications are well defined.
  • You know how to handle change requests.
  • You are good with estimating time
  • You are comfortable with the client. (It requires experience and git feeling to decide which client will demand a lot of changes and insist they are part of the original specifications.)

If ALL of these do not exist, you should be very wary of committing to a fixed price quote and instead insist on a hourly/weekly pricing.

Did I miss anything? Email us at [email protected]
Have you joined our newsletter yet

We cover Webdev, Django, SaaS, Mobile and cloud computing and
help you “Build amazing webapps”.

Leave a Comment

Previous post:

Next post:

Turning customers to repeat customers

The best way to get business is by getting more work from an existing customer. New customers cost money to acquire. They need to be nurtured before they will get trust with you to let you work on the most... »

Turning customers to repeat customers

Moving up the value chain

  If you want to grow the business without growing headcount the only way is the provide higher end services or to sell products. Do you sell services which can be productized? Do you have technology which can be sold... »

Moving up the value chain

Keeping costs low

As you start to scale the business, the overhead costs start increasing. Eg. When you are self employed you maybe doing billable work 90% of the time. As your business grows, you will have to add admin staff, accountants and... »

Keeping costs low

Browse Agiliq

  • Home
  • About Agiliq

    We develop bespoke web applications using Django, the related Python technology stack and the Jquery javascript library. We primarily work with web development companies as technology partners.

    Copyright © 2009-2011, Agiliq. All rights reserved.