OnDemand WTP Pricing Research

Time and material vs Fixed price: hot discussion of the best pricing model | Cleveroad

Giving your money to someone is always difficult, at least for me. When I open my wallet I have to be sure that I get the best quality for this money. However, the variety of services, goods and payment methods is vast, so sometimes I really get confused. The same goes for here, in the IT sphere! You can choose how, when and how much you want to pay for the development of your mobile application or a website, according to the type of a project and the way you want it to be built. In our article, we’ll dot the i’s and cross the t’s and find out what kind of payment, Fixed Price model or Time and material contract is going to be the best for you.

Time & Material vs Fixed Price
Before you buy a new chair you want to know everything about it. What materials it is made of, who constructed it, where it was produced, will it last long? Before we pick the payment option – our “chair”, let’s make sure that you understand what each one means.

Fixed contract definition
It is a model where a client pays a predetermined amount of money, which he has discussed and agreed to pay for a particular scope of work to a vendor. You can understand what is Fixed Price project if you read between the lines. A client and a vendor set not only the fixed sum but also a date (deadline), which cannot be changed even if a vendor faces lots of issues, bugs and technical crashes.

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Time and material vs Fixed price: hot discussion of the best pricing model.

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