You’ve probably noticed that on our website, we described different ways of charging for projects that we do at WeCanFly. Usually we make a suggestion as to which of the charging models is better for your situation. Yet we’re open to charging you the way you feel comfortable with. Without much ado, let’s discuss Fixed Price and Time & Materials – two approaches to pricing in contracts for Shopify services.
Time & Materials
Time & Materials denotes a charging model in which you pay for the resources that went into completing the project. They comprise two things.
- amount of time that our Shopify specialists spend working on your project
- cost of materials and any equipment used to finish the work
Resources like that are hard to predict. Something may occur along the project that makes the developers or designers spend a little more time than they thought it would. Clear communication during the work, however, helps to foresee any potential “bumps in the road” and such pricing gives enough flexibility to finish the project smoothly.
Pros of Time & Materials charging model
Time & Materials billing model has a couple of attractive benefits.
- cost transparency – clients know what they pay for
- greater flexibility when it comes with the project completion
- work progresses even though there is an unexpected roablock
- more transparency around the progress of work
- increased client involvement in the project
Cons of Time & Materials charging model
Although there are plenty of advantages to that charging model, its downsides can’t be ignored when making a decision which billing is best for you. What are those disadvantages?
- inadequate estimation if done by inexperienced teams
- lower control over the budget
- greater client involvement
- possibly annoying because of frequent communication
When should you choose it?
Time & Material is the most suitable for Shopify projects that are hard to estimate. Let’s say we do a UX audit of your online store. Then, that kind of billing contract would be more profitable. Why? Every UX Researcher follows a specific process of work, for sure. Nonetheless, every store is different and so are the users.
Similarly, Shopify performance optimization is also a great example of the convenience that the Time & Material charging model is preferable. One of Shopify developers has the time to inspect your site and work with your store (materials). You can count on a great, personalized service that’s adjusted to your Shopify store. What about the second charging model?
Some projects can be pretty straightforward. Usually those kinds of Shopify projects work best under the fixed price billing. Fixed Price means that a Shopify specialist charges the exact amount that is agreed upon and put in the contract. Like the previous charging model, Fixed Price has its advantages and disadvantages. Time to explore them.
Pros of Fixed Price charging model
Fixed Price has many great advantages that can appeal to some clients.
- established price
- predictable service
- no need to be involved
- streamlined process
Cons of Fixed Price charging model
Still, there are pitfalls when it comes to the Fixed Price contract type.
- higher costs
- small control over the progress
- little room for adjustments
- greater possibility of miscommunication
When should you choose it?
Fixed Price works for clients that come to us with simple tasks and who have rather generic Shopify stores. For example, a merchant approaches us to help them integrate Shopify with their desired service. Then, the fixed price model is going to work out. The task is simple. In that matter, Fixed Price is best for cookie-cut services that don’t require a lot of estimation.
Yet, if you have a complicated project, there are some things that can’t be predicted or you need some management over the project – the Time & Materials charging model can be more satisfactory than the Fixed Price one.
Let’s pick the charging type for your Shopify service
Those are two most popular billing contracts that we follow at WeCanFly. Over the years, we found them to be the most suitable. We would love to know what kind of project you’re trying to estimate. Use the form below to share the project with us. We’re super curious about it.