Fixed-fee pricing
also known as flat-fee pricing · fixed-price
Charging one agreed price for a defined scope of work, regardless of the hours it takes. Gives the client certainty and puts overrun risk on the agency.
For example, an agency quotes $12,000 to design and build a website with a clearly defined scope. Whether it takes 90 hours or 130, the client pays $12,000 - so a tight scope and a change-order habit are what keep the project profitable.
Why it matters to your firm: fixed-fee pricing is what most clients want, because they know the cost up front. For the agency it rewards efficiency but punishes loose scope, which is why it only works safely alongside a clear scope of work and disciplined change orders.
Common mistakes
- Quoting a fixed fee on vague or shifting scope.
- Having no change-order habit, so every overrun gets quietly absorbed.
- Never checking the effective hourly rate after delivery to see if it paid.