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Have to disagree here. Never ever use not to exceed pricing. This is the single most dangerous type of pricing. If you do it faster you have no benefit and if
by triviatise 15y ago
Have to disagree here. Never ever use not to exceed pricing. This is the single most dangerous type of pricing.
If you do it faster you have no benefit and if you go over you really lose badly.
With fixed fee if you are under you make extra which balances the times that you are over.
When you first start out you must use time and materials (hourly). Report expenditures at least weekly or even more often, so the client always knows where he is at and can prioritize accordingly.
Once you figure out what you are doing and have a repeatable process you can do fixed fee
- brudgers 15y agoThere's no reason to disagree. I wasn't advocating hourly not to exceed - just offering it as an alternative. Doing it faster with straight hourly does not offer any more benefits than hourly not to exceed - the benefit of doing it faster in both is improved cash flow if a milestone payment model is used. Hourly not to exceed provides a solid feedback loop on estimates and allows the development of better estimating skills. Like "buying a job" with a low flat fee, it may provide soft business benefits depending on circumstance.