How do fixed prices work?

[projectunfazed]

Hello!

I've mostly done hourly contracts for my time here and looking for some fixed price jobs, but I'm still a bit confused about how fixed prices work:

Say there's a fixed price contract of $600 for an ongoing project. If I set milestones for the tasks,will those milestones be equal to $600 and that's all? What if the fixed price project is like an ongoing comic book  job-- I'm sure most people don't wanna draw for a year on fixed price job for just a milestoned $600. I don't see any job posts like that indicating that they wiill reset the fixed price every time all milestones are completed is completed.

So ultimately will the $600 be all? My apologies if this seems like a pretty obvious question, sometimes I need things explained in a different way.  😅

[robin_hyman · Accepted solution]

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Apryl M wrote:

Hello!

I've mostly done hourly contracts for my time here and looking for some fixed price jobs, but I'm still a bit confused about how fixed prices work:

Say there's a fixed price contract of $600 for an ongoing project. If I set milestones for the tasks,will those milestones be equal to $600 and that's all? What if the fixed price project is like an ongoing comic book  job-- I'm sure most people don't wanna draw for a year on fixed price job for just a milestoned $600. I don't see any job posts like that indicating that they wiill reset the fixed price every time all milestones are completed is completed.

So ultimately will the $600 be all? My apologies if this seems like a pretty obvious question, sometimes I need things explained in a different way.  😅

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Hi Apryl,

If you opt for fixed-price projects, you can be paid $600 (your example) as a lump sum or in milestones (increments).  It's up to you and the client.  What's great about a fixed price is that you can set it for a total and you or the client can keep adding milestones as additional projects or steps in the project arise.  You don't see jobs advertised like this because it's on a case-by-case basis depending on the type of project and circumstances.  

Hope this makes sense.  

[projectunfazed]

Oh, I see. I'll be sticking to hourly for that kind of work then, thank you!

[AveryO]

Hi Apryl, 

In case you will work on fixed-price contracts in the future, I'm sharing this help article that lists the differences between hourly and fixed-price contracts. The article has links that lead to other helpful articles and hopefully this will help you decide what contracts to work with in the future.