Fixed Price vs Day Rate: Which Is Better for a Small Business Tech Project?
Most tech agencies charge by the day. We charge a fixed price. Here's why that matters — and what to watch out for with each model.
If you've ever got a quote for a website or software project, you've probably encountered two different pricing models: a fixed price for the whole thing, or a day rate with an estimate of how many days it'll take.
Both can work. But for a small business commissioning technology for the first time, the two models create very different experiences — and very different risks.
The problem with day rates
A day rate with an estimate sounds reasonable until the estimate gets extended. Scope creep, technical complexity, miscommunication, and changing requirements all tend to add days. In a day-rate engagement, every one of those extra days comes out of your budget.
This isn't necessarily dishonest — software is genuinely hard to estimate precisely. But it puts all the risk on you, the client, rather than the agency.
The case for fixed price
A fixed-price engagement requires more work upfront. We spend time during the discovery phase understanding exactly what you need, writing a detailed specification, and only then agreeing a price. Once that price is agreed, it doesn't change.
If we underestimate the work, that's our problem. You get what was scoped, at the price that was agreed.
What fixed price requires from you
For fixed price to work, the scope has to be clear. If requirements change significantly after the project starts, that's a new scope and a new quote. This discipline — being clear about what you want before work begins — is actually useful in itself. It forces both sides to think clearly about what success looks like.
Our approach
Every project we take on has a written specification and a fixed price before any work starts. If you ask for something that's outside the spec, we'll tell you clearly and quote for it separately. There are no surprises on your invoice.