Almost never take a fixed bid contract. They're pretty much always a net negative.
This is not the best approach, honestly.
No one would pay me the effective hourly rates that I make off fixed rate projects, and everyone is happy. Clients almost always prefer to know what they’re going to pay upfront.
Additionally, hourly seems simpler and low risk, but it’s all downside for you. If you’re way more efficient, you get penalized. But if it takes longer than your estimate, clients get pissed. At extremes, they may just refuse to pay. Tell a client your estimate is $10k and then try to bill $30k, tell me what happens :)
Just like value-based pricing, flat rate takes a bit more skill to learn, but it’s dramatically more profitable in the long run.
I did some fixed software dev contracts many years ago (1994-1995 time frame). I cobbed the agreements together myself and put in late penalties; as in, I get paid less for being late, with an increasing scale by the day.
In some industries, you cannot avoid flat pricing. E.g. bidding on any sort of construction or renovation project. You may have workers under you who work by the hour, but that's your problem.
This is not the best approach, honestly.
No one would pay me the effective hourly rates that I make off fixed rate projects, and everyone is happy. Clients almost always prefer to know what they’re going to pay upfront.
Additionally, hourly seems simpler and low risk, but it’s all downside for you. If you’re way more efficient, you get penalized. But if it takes longer than your estimate, clients get pissed. At extremes, they may just refuse to pay. Tell a client your estimate is $10k and then try to bill $30k, tell me what happens :)
Just like value-based pricing, flat rate takes a bit more skill to learn, but it’s dramatically more profitable in the long run.