What a fixed fee actually sells
A fixed fee sells certainty. The client pays a premium for knowing the number, and you accept the risk that the work takes longer than expected. That trade is reasonable when you can estimate reliably and disastrous when you cannot.
You still have to track hours
The most common failure is firms that stop recording time on fixed-fee work because it is not billed hourly. Without the hours you cannot tell whether the fee was adequate, which means next year's price is set on feeling rather than evidence.
Scope definition is the whole game
A fixed fee without a written scope is an unlimited commitment. The scope should state what is included, what triggers additional fees, how many rounds of revision are covered, and what happens if the client delays.
Price for the distribution, not the average
If a project takes 40 hours on average but ranges from 30 to 80, pricing at the average means losing money on a meaningful share of engagements. Price nearer the upper end, or narrow the scope until the range narrows.
When hourly is honest
Genuinely open-ended work, early discovery, and anything dependent on client responsiveness are poor fixed-fee candidates. Offering a fixed fee on those tends to end in either a loss or an awkward renegotiation.
TallyWise provides this as part of our professional services accounting. Book a call to talk through your situation.
