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Debate: Should agencies charge by the hour or by the project?

I tried a flat project fee last month for a small client in Austin and ended up spending 18 hours on something I estimated for 10. But then I see agencies making bank with fixed pricing. Which model actually works better for the long haul? Curious what others have experienced.
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davis.dylan
davis.dylan1mo agoMost Upvoted
Why don't people just take the time to really track their hours before offering flat fees? I charged a flat rate once for a friend's logo and ended up redesigning it 5 times because they kept changing their mind. Hourly keeps things honest and stops you from resenting the client later.
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dakotab13
dakotab131mo ago
People get way too dramatic about flat fees honestly lol. Like yeah it sucks when a client keeps changing stuff but that's more of a people problem than a pricing problem. You can just set boundaries upfront like "hey here's how many revisions are included" and stick to it. Hourly is fine but some clients get weird about watching the clock tick too, it's not like it solves everything. Really just depends on the person and the project more than anything.
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