I compared fixed fee versus hourly billing for a big project last quarter

Everyone in my agency group kept saying hourly billing protects you from scope creep. So I tried it on a $15,000 branding project for a local restaurant chain. I ended up logging 20 extra hours on revisions they called 'small tweaks' and ate the cost. Switched to fixed fee with a very clear scope document on the next project and it went smooth start to finish. Has anyone else found fixed fee works better for creative work when you define deliverables upfront?

2 comments

2 Comments

tara_jones941d ago

Switched to fixed fee last year for all my logo and branding work and never looked back. Tbh the key is that scope document you mentioned. I now put every single deliverable in writing including how many rounds of changes are included. When clients ask for 'just one more tweak' I can point to the agreement and say that's a new phase. Hourly billing made me feel like I was nickel and dimeing them on every little email. Fixed fee just feels cleaner for both sides if you're strict about what's included.

brian_rivera591d ago

Man I had the exact same experience last year with a restaurant branding project. I wrote up the scope with 3 rounds of logo revisions and 2 rounds for the menu board designs. Client came back after the 3rd round wanting a whole different color scheme for the menu - I just said "that's a new phase" and quoted them $400 extra. They actually paid it without complaining because I had it in writing. Fixed fee saved me from that awkward hourly billing dance where you're both checking the clock during every little request.