Benefits of Fixed Price Custom Software Development
Customers requiring the services of trained professionals are often looking for a fixed price associated with that service being successfully completed. This is commonplace in all industries whether you are looking to have your haircut by a hairdresser or have your dream home built by a construction company. Knowing upfront the price, the details of the service and the time it will take is reassuring and ensures a level of confidence for the customer.
Imagine a situation where you are at the hairdresser and while cutting your hair, the hairdresser actually cuts a little too much off one side. Originally your trip to the hairdresser was going to cost you $30 but now the hairdresser insists that it will cost $35 because of the extra time needed to rectify the mistake.
Nobody enjoys these hidden or unexpected costs and this is where a fixed pricing model can help.
How does fixed pricing apply to custom software development?
As a business, one of the key measurements when undertaking a custom software development project is return on investment (ROI). The amount spent on developing the software can be deemed the investment and the amount of profit, whether this be time, money or some other benefit, can be deemed the return.
Under the fixed pricing model, you as the business, will understand that by spending $X you can achieve your desired outcome. This enables you to budget your finances accordingly and create future financial forecasts. In this instance, the risk of development has been accepted by the developer and any unforeseen difficulties related directly with the development of the software will not affect the agreed upon price.
With that in mind, it becomes necessary early in the project for the developer to engage with the business customer and document the project requirements. This documentation is required to be at a high enough level of detail for the developer to accurately price the project and ensure there are no missed assumptions or ambiguities. The project will then be delivered according to the documented requirements with minimal room for variation.
What!? What if I don't know all of my software requirements up front?
It is unlikely you will have a complete detailed picture of your software ambitions up front. Software projects can vary in length and complexity and there is always a need to adapt to changing requirements throughout the project.
Our team at Qubisoft understand these issues and through experience, can provide a fixed price for your project. We will help you identify your minimal viable product (MVP) which addresses the set of features critical to your software and provide you scope to add some additional features throughout the development process without increasing the cost. Large projects would be broken up into stages or milestones, with each stage having its own fixed price.
We don't want the decision to create custom software for your business to be daunting or the development experience to be stressful