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The Pros and Cons of Fixed-Price Projects

Posted on September 18, 2014 by BuildRX

BuildRX is a development team that builds custom apps and websites for really awesome brands. Their clients include: Universal Music, Juicy Couture, Swarovski, Scion, the San Francisco 49ers and many more. BuildRX is a Spree Commerce Certified Partner.

Over the past six years that our development agency has been in business we’ve taken many different approaches to close leads as quickly and efficiently as possible. None of the tactics we’ve tried have been quite as successful as scoping fixed-priced projects for clients.

Many agencies seem to shy away from this pricing strategy as it’s much riskier than billing clients an hourly rate, but it can significantly assist with developing client confidence in your ability and can open doors to more projects and retainer-style work. This is an especially great strategy for young agencies that are starting out and in the early growth stages as you need to build trust with inbound leads.

Even though it can be a great strategy and will help you close projects it’s very important to be careful. It’s essential to have an experienced team member on board that knows what they’re doing when it comes to scoping a project accurately and seeing the project through to completion on budget.

Here’s a good way to understand the risks and benefits of scoping fixed-price projects before moving forward with this pricing method:


Easier to close projects
When you create a fixed-priced scope, you take the financial risk off of your client and put the burden on your agency. Simply, being explicit about what you will do and how much you’ll do it for makes it easier for them to say yes or no.


Clients don’t always articulate all their needs up front
While you have years of experience building websites and apps, often your clients may not. Consequently, clients may have a difficult time articulating what they need or what’s involved in creating it. Success in using fixed-price quotes highly depends on your ability to listen to them, ask the right questions, and draft a clear scope of work that gets them from the beginning to the final stage of the project.

Have any questions about the pros and cons of fixed-price projects? Reach out to us on twitter @BuildRX and, while you’re at it, take a look at BuildRX.com. To view this blog in its full format, visit BuildRX’ post on medium.com.