What is the difference?
Before we dive deeper into determining the best option, let's first clarify and define the distinctions between them.
Fixed rate and hourly rate are two common pricing models used in various industries, including web design and development. Each has its advantages and disadvantages, and the choice between them depends on factors like the nature of the project, client preferences, and the specific needs of your web agency/client. The main difference is the billing structure:
- Fixed Rate: Under a fixed-rate pricing model, you agree with the client on a predetermined, fixed amount for the entire project. This means the client pays a set price regardless of the actual time and effort it takes to complete the project.
- Hourly Rate: With an hourly rate model, you charge the client based on the number of hours you and your team work on the project. Clients are billed for the actual time spent, often on a regular basis (e.g., weekly or monthly).
Fixed rate vs hourly rate: Pros & Cons
Both flat and hourly rates come with their unique set of advantages and disadvantages. It's crucial to determine which suits your billing process best, although it's worth noting that some clients may favor flat-rate systems over hourly payments.
Fixed rate Pros:
- You know what the project cost is from start
- Easier to budget
- Enables the feature of transparent pricing
- Easy to understand for all parties involved
Fixed rate Cons
- If you are not a expert in your field, it is easy to give a wrong estimated price
- Certain people only work with hourly rates
- The upfront cost seems larger and therefore scares people away
Hourly rate Pros:
- Makes changes of the project scope easier
- Could be better for longer collaborations
Hourly rate Cons
- It's hard to keep track of the time
- No certainty the the hours being worked are efficient
- Make slower and not efficient work = more money
So why did we decide to work on fixed prices only?
The clearest choice for us reflects our unwavering confidence in our abilities, which is why fixed pricing aligns perfectly with our approach. We prioritize the quality of the products we deliver rather than merely counting the hours. Over our years in business, we've received valuable feedback from numerous clients who find fixed pricing comforting. They rely on our expertise, and in this unique partnership, the trust and transparency fostered by fixed pricing are of paramount importance to us.
And let's be real, who wants to be the timekeeping sheriff? We'd much rather be the wizards of design and development, conjuring up fantastic digital experiences for our clients! If you're ready to dive into the awesomeness, just reach out, and we'll hop on our digital broomsticks to kickstart our magical collaboration!