If a fixed price or hourly engagement the best for your project?
In an hourly engagement, you are billed for the hours worked, usually every two weeks or monthly. The rates you are charged will vary by company, and even by role. You might pay $75 per hour for a project manager, and $100 per hour for a .NET developer. In a fixed price model, you and the software team you hire agrees to a fixed price for a fixed set of requirements. In theory this is pretty straight forward. You tell the software team what you want done, and they quote you a price. Keep reading.
The advantage of an hourly rate engagement is that you only pay for the hours worked, and you can usually change directions, if needed, without dealing with re-bidding. The negative to the hourly model is that if you hire the wrong team, you could be paying for hours that were not worked. But if you did hire the wrong company, you have bigger problems. The advantages to a fixed price are that you know the final cost and can decide if your budget allows it. The disadvantage of a fixed price engagement is that no software project in the history on man has ever come in within budget. Why is that? Basically, you don't know everything you need to know about your project. You are going to miss things, and every time one of those items comes up, your fixed bid goes out the window. A fixed bid engagement very quickly turns into a "whatever we want to charge the customer" type of agreement. This is not to say that the software team is being deceptive. If you ask them to do 10 things, and that list grows to 15, they are going to charge you more.
If your project is very simple, and by that I mean less than 40 to 80 hours of effort, a fixed price can make sense. The reason is that the risk is low enough that if the software team underestimates the effort, they are most likely going to just eat the loss. If, however, we are talking about a multi-month project, an hourly engagement is most likely going to be your best bet. First, we don't know of any reputable software development company that charges on a fixed price basis. We all know the deal. Requirements change. Priorities move around. The client doesn't really know what they want coming in. So slapping a label of "fixed price" on a quote when we know this is never going to happen is considered unethical by many companies, including MyProgrammer. Unfortunately, many people find this out the hard way.Which Pricing Model Do We Use?
Free consultation and estimate. Start the conversation now.
I’ve been meaning to get back to you regarding a testimonial. I would love to give you a testimonial, however since we do not have an industry exclusive clause with you, upper management fears our ruthless competitors will figure it out and start using you as well to become as productive as we are now becoming!
We developed a great partnership with Rob and the MP team. They are dedicated to understanding our internal processes and the requirements for our Partner Portal website. We appreciate their attention to detail, timely delivery and their post development support is OUTSTANDING. I would definitely recommend their services to other colleagues.
San Francisco, California
I believe in providing referrals when they are warranted, and that is the case with the group at MyProgrammer.
Charleston, South Carolina
The entire team at MyProgrammer did a great job on our project, even when dealing with tight deadlines. We have since hired them for other projects.
Los Angeles, California
Working with the MyProgrammer team was extremely easy and they were more than helpful in designing a program to fit our needs.
We have been very pleased with our relationship with MyProgrammer. They have delivered a quality application that met our needs completely.
Delmar, New York