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Never give fixed prices for hourly development time, as the history of estimates should have already shown your teams competence quoting. The simple reason is
by Joel_Mckay 3y ago
Never give fixed prices for hourly development time, as the history of estimates should have already shown your teams competence quoting.
The simple reason is many larger firms simply will not pay their scheduled final installment for a fixed price contract, lawsuits are tax deductible for large firms, and so you should adjust your initial service pricing to offset this phenomena.
Note many mid-sized companies will simply never allow customer specific development time, as it exposes more risk the longer it persists.
Seriously, whatever deal you think you signed is often wishful BS once the incentive to pay is gone.
- boomskats 3y agoThis advice feels very US-specific. I've delivered 7-8 fixed projects for giant corps in Germany/Belgium/NL/UK, ranging between 70k and 350k (eur) in project value, and never ever felt that this was a risk.
- Joel_Mckay 3y agoI think you missed the point, and that was taking on unknown risks to subsidize a large firm is often foolish for a small company.
- boomskats 3y agoSorry, I had to read your comment a couple of times. If you're saying it's just a case of risk vs reward then I agree. But that's what you're meant to do when you negotiate a deal: keep actual risks low and make perceived risks high. That's how you maximise your reward.