Until recently when it came to software development pricing, the two most popular models were the Fixed Price and Time and Material. Each of the approaches has its welfares and weaknesses. We have already dealt with the peculiarities of each pricing scheme before, but a new approach to development projects pricing has emerged recently.
Imagine the situation: for several months, all your team is hard at work developing a project. The product is cool, you release a trial version — and suddenly the client says that «it’s just not what he meant». Or, he is totally satisfied with the functional, you shake hands, and in a couple of months, you occasionally come across the comment in which your ex-client complains: he invested excessive amounts of money in cooperation with you, and now the product doesn’t bring him any slightest profit. Obviously, it damages the image of the company.
When choosing the model of cooperation with IT company, you should pay attention to opportunities that open this or that pricing model. Among most popular pricing models in IT are Time and Materials and Fixed Price contracts. What is the difference and why we suggest using Time and Materials to win the desired goals?
