What Project Pricing Approaches We Use at EGO: Time & Materials, Fixed Price, and Retainer/Subscription
When you’re in charge of projects at EGO, picking the right project pricing model isn’t about snagging a one-size-fits-all solution. It’s about matching the billing method to the type and scope of the project. Each has its perks and trade-offs.
EGO relies on three main approaches:
- Time & Materials (T&M)
- Fixed Price
- Retainer/Subscription
Let’s break down how these models work, what they offer, and why none is the ultimate champion but rather best suited to different project setups.
1. Time & Materials (T&M): Flexibility and Transparency
The Time & Materials approach means you pay for the actual hours spent on your project plus materials used. This model is perfect when:
- Your project needs to be flexible because requirements might change.
- You lack a fixed scope or detailed specs at the start.
- You want to stay involved in steering the project as it progresses.
Pros:
- Maximum flexibility: Modify features without renegotiating contracts.
- Transparency: Regular updates keep you in the loop on progress and costs.
- Control: You prioritize features and control pace and direction.
Cons:
- Less budget predictability: Costs can exceed estimates if scope expands.
- Needs active client involvement: Regular decision-making and prioritization on your end.
This model shines for startups, innovative services, or complex web projects with a changing feature set—projects where flexibility is crucial.
2. Fixed Price: Predictability and Scope Control
With the Fixed Price model, you set a clear budget and timeline based on a defined scope. You pay a fixed amount, no matter the hours spent.
Pros:
- Budget certainty: Know what you’ll pay as long as scope doesn’t change.
- Less daily involvement: After defining the project, focus elsewhere.
- Aligned incentives: We take financial risks and aim for efficient delivery.
Cons:
- Rigid scope: Changes need official requests, reducing flexibility.
- Possible quality trade-offs: Meeting minimum requirements to protect margins.
- Risk of misalignment: May deliver exactly what’s specified, not what’s needed if conditions change.
This method is great for projects with clear, stable needs, like product feature additions, system checks, or analytics tasks where scope is known beforehand.
3. Retainer/Subscription: Ongoing Collaboration
The Retainer or Subscription model suits projects or needs that are continuous, not one-off. It’s like having steady support or a development partnership with consistent monthly billing.
Pros:
- Consistent access: Get prioritized attention and reserved capacity to address needs.
- Budget stability: Predictable costs aid financial planning.
- Strengthens relationship: Encourages long-term collaboration and knowledge building.
Cons:
- Used capacity risk: Pay for time even if not fully used each month.
- Expectation management: Clearly define service boundaries included.
This model works well for clients looking for a dedicated partnership for ongoing enhancements, maintenance, or evolving needs.
Why No Model Is “Better”—It’s About Fit
Every project has different priorities: sometimes it’s flexibility, sometimes cost certainty, sometimes ongoing support. Here's a quick snapshot of these models:
| Aspect | Time & Materials | Fixed Price | Retainer/Subscription |
|---|---|---|---|
| Best For | Flexible, evolving projects with unknowns | Clearly defined projects with fixed scope | Continuous support and collaboration |
| Budget | Variable, transparent | Fixed, predictable | Predictable, recurring |
| Client Involvement | High, ongoing | High at first, lower later | Regular but balanced |
| Flexibility | High | Low | Medium |
| Risk | Mostly client bears cost overruns | Provider bears cost overrun risk | Shared, depends on contract terms |
At EGO, we don’t force-fit every project into one pricing model. We choose what makes sense for you, given the project’s features, your flexibility needs, budget, and how you want to engage. The art is in the tailoring—knowing when to use each method to get optimal results.
How EGO Demonstrates These Models
Take our Custom Service Listing The Ego for example. This demo showcases multiple service levels like Basic, Premium, and Deluxe under one roof, letting clients clearly compare packages and select what suits them best. This tiered strategy mirrors how we present offerings transparently and let clients opt for the pricing and service model that works for them.
Final Thoughts
Choosing a project pricing model is more about strategic fit than finding a "best" option. Time & Materials offers freedom but less predictability; Fixed Price brings certainty but less flexibility; Retainer promotes ongoing collaboration but needs clear expectations. Each finds its strength in its niche.
At EGO, we combine our expertise with your project’s unique needs to select the perfect approach. That’s how we ensure every project is priced and executed with success.
Want to organize your business projects and master pricing like a pro? Subscribe to our founder’s newsletter and learn to systemize your business—even if you’ve never done this before.
