Why Fixed-Price Custom Software Development Is Better For Businesses

Custom software development can often be complicated and expensive, especially when there is no fixed-price involved.

Simply put: fixed-price custom software development is better for businesses and here is why you should consider this approach…

For obvious reasons, feedback from the client is essential to build the software they need, however, it can become a burden for them when they are charged for every iteration with the developer.

In a traditional cost-plus charging model, the client needs to be precise in their communication to avoid extra costs.

Understandably, as a result, clients may choose to ignore some issues to avoid additional expenses.

Fixed-price custom software development means clients do not need to be worried about the monetary side of things after the initial quote.

Literally, they can come back to the developer and say, “Hey, this button doesn’t do exactly what it’s supposed to,” without worrying about incurring extra costs for that.

Hourly rates are another issue that can pop up when it comes to software development.

The reason is that some developers can take longer than others to finish a project, meaning that the client will pay more if the project takes longer than expected.

With fixed-price custom software development, clients are aware of how much the project will cost upfront, which provides more transparency and reduces the risk of hidden costs.

From a business point of view, fixed-price software development is also beneficial because it puts the onus back on the developers to ensure that the project is delivered on time and within budget.

Developers are aware that they will be paid the agreed amount regardless of the time they spend on the project.

This approach encourages developers to work more efficiently and complete the project on time.

Fixed-price software development provides a better scenario from a consumer point of view, as clients are not worried about incurring additional costs and from a developer’s point of view, as developers are encouraged to complete the project on time and within budget.

It’s a win-win for all.