Categories: Helpful Resources

Different Pricing Models For Client To Choose For Their Projects


Indeed, setting up a price tag for the project might be a difficult task when you have a list of companies in your hand. Before making any important decision, you may take a deep-dive among them to get the best price for your project. Moreover, most companies have their pricing models, based on project scope and duration, to work with the clients, while the client and contractor duo work reflectively to decide a pricing model on the various aspects. Whether you are a large organization or a freelancer, there is no single way to go with. Choose the right pricing models to drive your business constantly.

Here We Are Going To Discuss The Different Pricing Models Which May Help You To Lead Your Project.

Fixed Price Model

Various IT Companies follow this model to deliver some specific requirements of the client at the fixed price and the shortest time. This model is quite popular among the companies as this model offers plenty of benefits to both client and company. The project under this model is well-documented and shows a clear contractual agreement signed between client and company. This model has some scopes which may effect on the company’s performance. If you have basic project requirements then this is the best option for you.


  • Low risk
  • No extra payments
  • Clear requirement
  • Clear supervision
  • Project transparency


  • Lack of communication
  • Lack of control over the project
  • Security

Time and Material Model

This is a suited model for project development without any limitation. In this model, the client pays to the developer on hours bases plus the cost of materials and other expenses. There is no pre-defined vision or goal as you can define the specifications of the project at any stage. The most important feature of the Time and Material Model is its flexibility as the one can change the requirements and scope of the project and can involve users to complete the project.


  • No clear limitation
  • Clear project transparency
  • Predictability
  • Regular communication
  • Flexible budget


  • No deadlines
  • Less secure
  • Less accountability

Dedicated Team Model

A dedicated team model is the most efficacious choice of clients for their project. In this model, the client and outsource company has come in collaboration on the business project. The outsource company entrusts a team of well-skilled professionals to the client to work on a particular project, consequently, the client has full control over the team and project. It is hard to calculate the overall time in a closing of the project as it may vary depending on the project requirements.


  • Long term commitment
  • Full control over the team
  • High Quality
  • Efficiency and speed
  • Project scalability


  • Low efficiency for short-term project
  • Expensiveness

Project Fees

The project fees come to make a fixed amount of the project. The client and outsource company agree to the fixed price of the delivery of the project. This model provides plenty of opportunities to both client and service provider. Moreover, this is the best-suited model to enhance the scope of your project.


  • Fixed amount
  • Regular communication
  • Customer satisfaction
  • Less complexity


  • Lack of Creativity
  • Time-consuming for preparation


The performance-based pricing is becoming much popular in the IT industry. This model is based on the performance of the service providers for which they get paid. Moreover, various companies work in the way to provide a positive outcome and maintain their services accordingly.


  • Pay for result
  • Reduced risk
  • Task flexibility
  • Good control over the team


  • No cost estimation
  • No rigid timeframe
  • Long disputes
Ajay Goyal

Ajay Goyal is the founder of Endive Software, is the leading IT Company based on India. He works dedicatedly with the clients to give industry-based results. His passion for learning the trending technology aids the team members to introduce unique and brainstorming. He runs development services like mobile app development and website development for enterprises and startups.

Recent Posts

  • ERP Development

Top Benefits Of Implementing ERP Software In An Organization Or Business

What do you think ERP stands for & what is it? Well, I have an answer for you here just…

May 20, 2019 12:31 pm
  • CRM Development

How to Build a Web-Based CRM System For Businesses

Here we will discuss the role of CRM software and How to build a Web Based CRM Software Or How…

May 19, 2019 10:45 am
  • Technology

Bluetooth vs. Near Field Communication (NFC): First-Ever Tabularized Comparison

A technology standard for exchanging the data between a source mobile and another mobile device over a short distance wirelessly…

May 17, 2019 10:30 am
  • Web Development

Top Java Web Development Frameworks of 2019

Large enterprises, and banking or financial companies are using this framework to keep their records or database secure. Moreover, this…

May 13, 2019 10:15 am
  • Mobile App Development

10 Interesting Geo-Location Based Ideas to Integrate In Your Mobile App

Believe on it or not, but Geo-location is present in more than 90% of apps installed on your smartphone that…

May 10, 2019 12:50 pm
  • API Development

A Complete Guide To API Development

In computer programming, an API (or Application Programming Interface) is certain information, a bunch of definitions, tools and communication protocols…

May 7, 2019 3:28 pm

This website uses cookies.