Fixed price is where the money is

I deployed this strategy effectively when buying custom software from agencies.

I offered a fixed price.

That’s not typically done.

Usually, you get their daily rates, and they ask for the scope to give you “the estimate.”

That’s useless.

It will take twice as long, and the project will explode two weeks before the deadline.

Every time.

The result (outcome) was the most valuable thing for all the software projects I’ve done.

The scope was always flexible.

Here’s what changed when I said, here is the outcome I want, and it’s worth 250k to me:

• The developers were motivated to deliver it as fast as possible.
• They were actively looking for solutions instead of waiting around.
• They were not afraid to spend a few thousand on a tool or a license (without having to get budget approval).
• The projects went way smoother.

If I find someone who can deliver that outcome in 3 weeks instead of 3 months, will I be angry that I paid so much for way less “work”?

Not at all!

“Work” is not what I’m paying for; the outcome is.

P.S. If you flip the script and you’re the one making the offer, think about how you can price the value instead of the work. This probably deserves a deep dive, but it can be an unfair advantage in a sea of average.

Best regards,

Taj