Fixed price or hourly? How to choose for each job
The two models, honestly compared
Hourly (time & materials) — you bill the hours you work plus materials. Risk sits with the client: if the job takes longer, they pay more. Your income is capped by the clock, and the faster you get, the less you earn for the same result.
Fixed price — one number for a defined scope. Risk sits with you, but so does the upside: 15 years of experience that lets you do in 3 hours what takes someone else 6 finally gets paid for.
The decision rule
Ask one question: can I define the scope precisely before starting?
- Yes → fixed price. Water heater swap, socket installation, standard bathroom retile, annual service. You've done it fifty times; you know the hours within 20 %.
- No → hourly, or fixed price with a defined boundary. Fault-finding, opening walls, "the previous guy did something weird", insurance work.
The trap is quoting fixed on an undefined scope out of fear of losing the job. That's not competitiveness — that's buying the job with your own margin.
The hybrid that solves most cases
Split the job in two:
Phase 1 — Diagnosis: $95 fixed. Locate the fault and report options. Phase 2 — Repair: fixed quote issued after diagnosis, deducted from the $95 if you proceed.
The client gets a small, safe commitment. You get paid to investigate, and you quote phase 2 with real information instead of guessing. Acceptance rates on this structure are high because nobody is asked to gamble.
Converting your hourly rate into a fixed price
Never just multiply hours × rate:
(Estimated hours × your rate) + materials + travel + a risk buffer = fixed price
The risk buffer is the honest part. For a job you've done many times: +10 %. For a variant you know but with unknowns: +20–30 %. If you feel you need more than 30 %, the scope isn't defined enough — use the hybrid above. (Don't have a rate yet? Start with how to set your hourly rate.)
Protect a fixed price with exclusions
A fixed price is only safe if its boundary is written:
Price assumes accessible pipework and standard wall construction. Asbestos, structural repairs or non-standard fittings are quoted separately.
That one sentence is the difference between a fixed price and an open-ended promise.
Know afterwards whether you were right
The model only improves if you compare quoted hours to actual hours. Pro Speak Artisan builds a personal catalog of every task you've priced — with your typical price and spread — so your next fixed quote is based on your real history, not optimism.