Fixed Rates
Overview
Fixed rates (flat-fee pricing) charge a predetermined amount regardless of time spent. Perfect for deliverable-based work, packages, and scope-defined projects.
Why fixed rates:
Predictable costs - Clients know exact price upfront- Value-based pricing - Charge for outcome, not time
- Efficiency rewarded - Work faster, earn more per hour
- Simple invoicing - One line item per deliverable
- Reduced tracking - Less focus on time details
When to use:
- Logo design, branding packages
- Website builds with clear scope
- Monthly retainers
- Deliverable-based milestones
- Standardized services
Setting Fixed Rates
Project-Level Fixed Rate (PRO+)
Charge fixed amount for entire project.
How to set:
- Navigate to Projects
- Click project name
- Go to Settings → Billing
- Select "Pricing Type":
Fixed Price - Enter Total Project Price:
€5,000.00 - Set payment schedule (optional)
- Click "Save"
Configuration:
┌─────────────────────────────────────────┐
│ Website Redesign - Billing Settings │
├─────────────────────────────────────────┤
│ │
│ Pricing Type: │
│ ○ Hourly Rate │
│ ● Fixed Price │
│ │
│ Total Project Price: │
│ [€5,000.00] │
│ │
│ Payment Schedule: │
│ ○ Single payment (on completion) │
│ ● Milestone-based │
│ ○ Monthly installments │
│ │
│ [Configure Schedule →] │
│ │
│ Time Tracking: │
│ ☑ Still track time (for analysis) │
│ ☐ Disable time tracking │
│ │
│ Budget Hours (optional): │
│ [80 hours] (€62.50/hour effective) │
│ │
│ [Save] [Cancel] │
└─────────────────────────────────────────┘
Example: Website Package
Project: Small Business Website
Fixed Price: €5,000
Included:
- 5 pages (Home, About, Services, Contact, Blog)
- Responsive design
- Contact form
- Basic SEO
- 30 days support
Exclusions:
- E-commerce features (+€2,000)
- Custom animations (+€800)
- Content writing (+€500)
Time tracking with fixed price:
Even with fixed pricing, track time for:
✓ Profitability analysis (Did we make money?)
✓ Future estimates (How long did it really take?)
✓ Team utilization (Who worked how much?)
✓ Scope creep detection (Are we over budget?)
Example:
Fixed Price: €5,000
Budgeted: 80 hours (€62.50/hour effective)
Actual: 92 hours (€54.35/hour effective)
Result: -€715 profit loss vs planned
Task-Level Fixed Rate (ENTERPRISE)
Charge fixed amount per task/deliverable.
How to set:
- Navigate to Project → Tasks
- Click task name
- Scroll to "Billing" section
- Select Rate Type:
Fixed Fee - Enter Fixed Amount:
€1,500.00 - Add description of deliverable
- Click "Save Task"
Configuration:
┌─────────────────────────────────────────┐
│ Logo Design - Task Billing │
├─────────────────────────────────────────┤
│ │
│ Rate Type: │
│ ○ Hourly │
│ ● Fixed Fee │
│ │
│ Fixed Amount: │
│ [€1,500.00] │
│ │
│ Deliverable Description: │
│ ┌────────────────────────────────────┐ │
│ │ Complete logo design package: │ │
│ │ - 3 initial concepts │ │
│ │ - 2 revision rounds │ │
│ │ - Final files (AI, EPS, PNG, SVG) │ │
│ │ - Brand guidelines PDF │ │
│ └────────────────────────────────────┘ │
│ │
│ Estimated Hours: [12 hours] │
│ Effective Rate: €125/hour │
│ │
│ Payment Trigger: │
│ ● On task completion │
│ ○ On client approval │
│ ○ Custom date │
│ │
│ [Save] [Cancel] │
└─────────────────────────────────────────┘
Example: Deliverable-Based Tasks
Project: Brand Identity Package - €8,500
Tasks (Fixed Fee):
1. Logo Design €1,500
2. Business Cards €400
3. Letterhead Template €300
4. Brand Guidelines €800
5. Social Media Kit €600
6. Website Mockups €2,500
7. Implementation Support €2,400
Total: €8,500 (sum of all tasks)
Why task-level fixed rates:
- Clear deliverables per milestone
- Partial invoicing (bill per completion)
- Mixed with hourly tasks in same project
- Scope protection (deliverable defined)
Payment Schedules
Milestone-Based Payments
Split fixed price into milestone payments.
Setup:
- Project Settings → Payment Schedule
- Select "Milestone-based"
- Click "Add Milestone" for each payment
- Define milestones with amounts and due dates
Configuration:
┌─────────────────────────────────────────┐
│ Milestone Payment Schedule │
│ Total Project: €5,000 │
├─────────────────────────────────────────┤
│ │
│ Milestone 1: Project Kickoff │
│ Amount: €1,500 (30%) │
│ Trigger: Contract signed │
│ Status: Paid (Jan 5, 2026) │
│ │
│ Milestone 2: Design Approval │
│ Amount: €1,500 (30%) │
│ Trigger: Design approved by client │
│ Due: Jan 20, 2026 │
│ Status: ⏳ Pending │
│ │
│ Milestone 3: Development Complete │
│ Amount: €1,250 (25%) │
│ Trigger: UAT passed │
│ Due: Feb 10, 2026 │
│ Status: 📝 Not started │
│ │
│ Milestone 4: Go-Live │
│ Amount: €750 (15%) │
│ Trigger: Site launched │
│ Due: Feb 20, 2026 │
│ Status: 📝 Not started │
│ │
│ [Add Milestone] [Save Schedule] │
└─────────────────────────────────────────┘
Common milestone structures:
50/50 Split:
✓ Best for: Short projects (1-2 months)
- 50% upfront (deposit)
- 50% on completion
33/33/33 Split:
✓ Best for: Medium projects (2-4 months)
- 33% upfront
- 33% at midpoint
- 33% on completion
30/30/30/10 Split:
✓ Best for: Longer projects (3-6 months)
- 30% upfront
- 30% at design approval
- 30% at development complete
- 10% post-launch (30 days)
Agile Sprints:
✓ Best for: Ongoing development (ENTERPRISE)
- €5,000 per 2-week sprint
- Payment at sprint end
- Continuous delivery
Monthly Installments
Split fixed price into equal monthly payments.
Setup:
- Project Settings → Payment Schedule
- Select "Monthly installments"
- Enter number of months:
6 - System calculates: €5,000 ÷ 6 = €833.33/month
Configuration:
┌─────────────────────────────────────────┐
│ Monthly Installment Schedule │
│ Total Project: €6,000 │
├─────────────────────────────────────────┤
│ │
│ Number of Months: [6] │
│ Monthly Amount: €1,000.00 │
│ │
│ Start Date: [Feb 1, 2026] │
│ End Date: Jul 31, 2026 (auto) │
│ │
│ Payment Day: [1st] of each month │
│ │
│ Auto-Invoice: ☑ Yes │
│ (Generate invoice automatically) │
│ │
│ Schedule Preview: │
│ ┌────────────────────────────────────┐ │
│ │ Feb 1, 2026 €1,000 (Invoice #1) │ │
│ │ Mar 1, 2026 €1,000 (Invoice #2) │ │
│ │ Apr 1, 2026 €1,000 (Invoice #3) │ │
│ │ May 1, 2026 €1,000 (Invoice #4) │ │
│ │ Jun 1, 2026 €1,000 (Invoice #5) │ │
│ │ Jul 1, 2026 €1,000 (Invoice #6) │ │
│ └────────────────────────────────────┘ │
│ │
│ [Save Schedule] │
└─────────────────────────────────────────┘
Use cases:
Retainer Agreement:
Service: Monthly Marketing Support
Rate: €2,500/month (fixed)
Term: 12 months
Total: €30,000
Included monthly:
- 20 hours consulting (approx)
- Weekly status calls
- Monthly report
- Email support
Subscription Service:
Service: Website Maintenance
Rate: €500/month
Term: Ongoing (cancel anytime)
Included:
- Security updates
- Backups
- 2 hours changes/month
- Uptime monitoring
Package Pricing
Service Packages (ENTERPRISE)
Pre-defined service packages with fixed pricing.
Setup:
- Navigate to Settings → Packages
- Click "Create Package"
- Enter package details
- Save and assign to projects
Package Template:
┌─────────────────────────────────────────┐
│ Create Service Package │
├─────────────────────────────────────────┤
│ │
│ Package Name: │
│ [Starter Website Package__________] │
│ │
│ Fixed Price: │
│ [ €3,500.00] │
│ │
│ Deliverables Included: │
│ ┌────────────────────────────────────┐ │
│ │ ☑ 5 responsive pages │ │
│ │ ☑ Contact form integration │ │
│ │ ☑ Basic SEO setup │ │
│ │ ☑ Google Analytics │ │
│ │ ☑ Mobile optimization │ │
│ │ ☑ 2 rounds of revisions │ │
│ │ ☑ 30 days post-launch support │ │
│ └────────────────────────────────────┘ │
│ │
│ Optional Add-ons (hourly): │
│ [ ] E-commerce (+€2,000) │
│ [ ] Blog setup (+€500) │
│ [ ] Custom animations (+€800) │
│ │
│ Estimated Timeline: [3-4 weeks] │
│ Estimated Hours: [40 hours] │
│ │
│ [Save Package] [Cancel] │
└─────────────────────────────────────────┘
Example: Tiered Packages
STARTER PACKAGE - €3,500
- 5 pages
- Contact form
- Basic SEO
- 30 days support
Timeline: 3-4 weeks
PRO PACKAGE - €7,500
- 10 pages
- Blog integration
- Advanced SEO
- E-commerce (up to 50 products)
- 60 days support
- Training session
Timeline: 6-8 weeks
ENTERPRISE PACKAGE - €15,000
- Unlimited pages
- Custom features
- Advanced integrations
- Priority support (6 months)
- Dedicated project manager
- Weekly check-ins
Timeline: 10-12 weeks
Package assignment:
When creating new project:
1. Select "Use Package Template"
2. Choose package: "Starter Website Package"
3. Auto-fills:
- Fixed price: €3,500
- Deliverables list
- Timeline estimate
4. Customize if needed
5. Create project
Fixed + Hourly Hybrid
Combining Fixed and Hourly
Project with both fixed deliverables and hourly work.
Example: Website + Ongoing Support
Project: Company Website
Fixed Component:
- Website Development: €8,000 (fixed)
- Design + Development
- 10 pages
- Contact forms
- 2 revision rounds
Hourly Component:
- Ongoing Support: €75/hour
- Content updates
- Bug fixes
- Feature additions
- Monthly maintenance
Billing:
- Invoice 1: €8,000 (upon launch)
- Invoice 2+: Monthly (hours × €75)
Configuration:
Project Settings:
- Primary Pricing: Fixed (€8,000)
- Allow Hourly Tasks: ☑ Yes
- Rate for hourly work: €75/hour
Tasks:
1. [Fixed] Website Design €3,000
2. [Fixed] Development €4,000
3. [Fixed] Testing & Launch €1,000
4. [Hourly] Content Updates €75/h
5. [Hourly] Bug Fixes €75/h
6. [Hourly] Feature Requests €75/h
Profitability Tracking
Fixed Price vs Time Spent
Track profitability of fixed-price projects.
Profitability Report:
┌─────────────────────────────────────────┐
│ Website Redesign - Profitability │
├─────────────────────────────────────────┤
│ │
│ Fixed Price: €5,000.00 │
│ │
│ Time Spent: │
│ - John (Senior): 30h @ €75/h = €2,250 │
│ - Sarah (Mid): 40h @ €50/h = €2,000 │
│ - Mike (Junior): 25h @ €35/h = €875 │
│ │
│ Total Hours: 95h │
│ Total Cost: €5,125 │
│ │
│ Revenue: €5,000 │
│ Cost: €5,125 │
│ Profit: -€125 (LOSS) │
│ Margin: -2.5% │
│ │
│ Effective Rate: €52.63/hour │
│ Target Rate: €62.50/hour │
│ Variance: -€9.87/hour (-15.8%) │
│ │
│ Project over budget by 15 hours │
└─────────────────────────────────────────┘
Budget tracking:
Project Budget Widget:
┌──────────────────────────────┐
│ Budget: 80h / 95h (119%) │
│ [████████████▓▓▓▓] Over! │
│ │
│ Revenue: €5,000 │
│ Cost: €5,125 │
│ Margin: -2.5% │
│ │
│ Status: 
Over Budget │
└───────────────────────────── ─┘
Alerts (ENTERPRISE):
Budget Alert Triggered:
Subject: Project "Website Redesign" Over Budget
Date: Jan 20, 2026
Project has exceeded 80% of budgeted hours.
Current: 76h / 80h (95%)
Projected: 95h (119% of budget)
Estimated Loss: -€125 at completion
Actions:
[ ] Negotiate scope reduction
[ ] Request budget increase
[ ] Absorb loss (learning experience)
[View Project →]
Invoicing Fixed Rates
Fixed-Price Invoicing
Generate invoices for fixed-rate projects.
Single Payment Invoice:
┌─────────────────────────────────────────┐
│ INVOICE #INV-2026-0042 │
│ Date: Jan 25, 2026 │
│ Due: Feb 10, 2026 (Net 15) │
├─────────────────────────────────────────┤
│ │
│ Bill To: │
│ ACME Corporation │
│ 123 Business St │
│ New York, NY 10001 │
│ │
│ Project: Logo Design Package │
│ │
│ Description Amount │
│ ──────────────────────── ────────── │
│ Complete logo design €1,500.00 │
│ package including: │
│ - 3 initial concepts │
│ - 2 revision rounds │
│ - Final deliverables │
│ - Brand guidelines │
│ │
│ │
│ Subtotal: €1,500.00 │
│ Tax (20%): €300.00 │
│ ──────────────────────── ────────── │
│ TOTAL DUE: €1,800.00 │
│ │
│ [Download PDF] [Send to Client] │
└─────────────────────────────────────────┘
Milestone Invoice:
┌─────────────────────────────────────────┐
│ INVOICE #INV-2026-0043 │
│ Milestone Payment #2 of 4 │
├─────────────────────────────────────────┤
│ │
│ Project: Website Redesign │
│ Total Project Value: €5,000 │
│ │
│ Milestone: Design Approval │
│ Completed: Jan 20, 2026 │
│ │
│ Description Amount │
│ ──────────────────────── ────────── │
│ Milestone 2: Design €1,500.00 │
│ Approval │
│ │
│ Previous Payments: €1,500.00 │
│ This Payment: €1,500.00 │
│ Remaining Balance: €2,000.00 │
│ │
│ Progress: 60% Complete │
│ │
│ │
│ Subtotal: €1,500.00 │
│ Tax (20%): €300.00 │
│ ──────────────────────── ────────── │
│ TOTAL DUE: €1,800.00 │
│ │
└─────────────────────────────────────────┘
Contract Templates (ENTERPRISE)
Fixed-Price Agreement
Template for fixed-price contracts.
Key sections:
FIXED-PRICE AGREEMENT TEMPLATE
1. Scope of Work
[Detailed deliverables list]
2. Fixed Price
Total: €________
Payment Schedule: [Milestone/Monthly/Single]
3. Deliverables
☑ Clearly defined outputs
☑ Acceptance criteria
☑ Delivery dates
4. Exclusions
Items NOT included in fixed price:
- [List explicitly]
5. Change Orders
Changes to scope require written approval:
- Change order form
- Additional cost calculation
- Timeline impact
6. Revisions Included
- Design: [2] rounds
- Copy: [1] round
- Additional: $[X]/hour
7. Timeline
Start: [Date]
Milestones: [List]
Completion: [Date]
8. Payment Terms
Net [15/30] days
Late fee: [2%] per month
9. IP Rights
Transfer upon final payment
10. Warranty
[30/60/90] days post-delivery
Change Order Process:
Change Order Form:
Original Scope: Logo design (3 concepts)
Change Request: Add 2 additional concepts
Impact Analysis:
- Additional Time: 8 hours
- Additional Cost: €800 (€100/hour)
- Timeline Impact: +3 days
Client Approval:
☐ Approved - Add €800 to invoice
☐ Declined - Proceed with original scope
Signature: ________________ Date: _______
Best Practices
Do's
- Define scope clearly - Detailed deliverables list
- Use contracts - Written agreements prevent disputes
- Set payment milestones - Don't wait until end for payment
- Track time anyway - Learn actual costs for future estimates
- Build in buffer - Estimate high, deliver early
- Document exclusions - What's NOT included is critical
- Use change orders - Formal process for scope changes
- Require deposits - 30-50% upfront protects you
- Set revision limits - "2 rounds included, then €X/hour"
- Define acceptance criteria - When is it "done"?
Don'ts
- Don't underprice - Better to lose bid than lose money
- Don't skip contracts - Verbal agreements fail
- Don't allow scope creep - "Just one more thing..." = change order
- Don't start without deposit - Reduces commitment risk
- Don't ignore profitability - Track if you're making money
- Don't over-promise timeline - Rushed work = quality issues
- Don't waive final payment - Small bugs ≠ full payment hold
- Don't forget taxes - €5,000 + VAT, not €5,000 total
Examples
Example 1: Freelance Designer
Service: Logo Design
Package:
Logo Design Package: €1,200
Included:
- Discovery call (1 hour)
- 3 initial concepts
- 2 revision rounds
- Final files: AI, EPS, PNG, SVG, PDF
- Basic brand guidelines (1 page)
Timeline: 2 weeks
Payment:
- 50% (€600) upfront
- 50% (€600) on delivery
Exclusions:
- Additional concepts: €200 each
- Extra revisions: €100/round
- Full brand guidelines: +€800
- Business card design: +€400
Example 2: Web Development Agency
Service: Business Website
Tiered Packages:
BASIC - €2,500
- 5 pages
- Mobile responsive
- Contact form
- Basic SEO
- 1 revision round
Timeline: 2-3 weeks
STANDARD - €5,000
- 10 pages
- Blog setup
- Newsletter signup
- Advanced SEO
- 2 revision rounds
- Google Analytics
Timeline: 4-6 weeks
PREMIUM - €10,000
- 15+ pages
- E-commerce (50 products)
- Custom features
- Priority support (90 days)
- Training session
- 3 revision rounds
Timeline: 8-10 weeks
Example 3: Marketing Agency
Service: Monthly Retainer
Retainer Agreement:
Monthly Marketing Retainer: €3,000/month
Included Services:
- Social media management (3 platforms)
- 8 posts per month (2/week)
- Content calendar
- Monthly analytics report
- Email support
- 1 strategy call/month
Approximate Hours: 20-25 hours/month
(Effective rate: €120-150/hour)
Term: 6 months minimum
Payment: 1st of each month (auto-invoice)
Additional Services (hourly):
- Ad campaign management: €150/hour
- Video production: €200/hour
- Website updates: €120/hour
Troubleshooting
Client wants unlimited revisions
Problem: "Let's do revisions until it's perfect"
Solution:
Include reasonable revisions (2-3 rounds)
Define "revision" vs "new concept"
Charge hourly for additional rounds
Set time limit (revisions within 30 days)
Contract Language: "Package includes 2 rounds of revisions. Each round must be requested within 5 business days of previous delivery. Additional revisions: €100/hour."
Project scope expanding
Problem: "Can you also add..." requests
Solution:
Change Order Process:
1. Client requests addition
2. Assess impact (time, cost, timeline)
3. Send change order for approval
4. Get written approval before proceeding
5. Update project scope and invoice
Never say: "Sure, I can squeeze that in."
Always say: "Let me prepare a change order for that."
Fixed price too low
Problem: Realized you underbid project
Options:
Option 1: Absorb loss, learn for next time
- Finish project professionally
- Document actual hours
- Adjust future pricing
Option 2: Renegotiate (risky)
- Explain situation honestly
- Show scope expansion evidence
- Request additional budget
- May damage relationship
Option 3: Reduce scope
- Deliver on original contract
- Offer "exclusions" as add-ons
- Complete within budget
Best: Option 1 (maintain reputation)
Next Steps
- Rate Management → - Understanding rate hierarchy
- Hourly Rates → - Time-based billing
- Mixed Rates → - Combining hourly and fixed
- Billing → - Managing subscriptions
- Invoices → - Creating and sending invoices
Need Help?
- Email: support@cadensa.io
- Community: community.cadensa.io
- FAQ: Fixed Rates FAQ