Target price vs. fixed price
In the following we show our process model for pricing
In the end, as is well known, it is always about the "dear" money. Despite our agile approach, we try to tell our customers in advance what costs they will have to expect in the end. Therefore we would like to present the 2 implementation models to you here.
Background:
When a developer analyzes in detail the issues, the solution approach and the implementation, then usually 60% of the work is done. In order to avoid unnecessary efforts, because you might just want to know what it would cost, you can get a fixed price offer as well as a target price offer.
Fixed price
DETAILED ESTIMATE WITH UPFRONT COSTS
Advance costs
An accurate estimate takes your time and must be invoiced.
Advantage
Fixed price and implementation date are certain.
Guide price
ROUGH ESTIMATE WITHOUT UPFRONT COSTS
No upfront costs
We estimate only roughly and name a price direction.
Advantage
There are no major costs and you can weigh up whether the point is important.