Fixed Price vs. Hourly Billing: Why Startups Need Price Certainty

I've been building websites for startups for years, and I've seen the same story play out over and over: a founder comes to me after working with another agency, and they're frustrated because what was supposed to cost €5,000 ended up costing €12,000.

"Every time we asked for a change, the bill went up," they tell me. "We stopped asking questions because we were afraid of the hourly meter running."

That's when I knew we had to do things differently.

The Real Cost of Hourly Billing

Let me tell you about a startup I worked with last year. They hired a freelancer who quoted them €75/hour, estimated 40 hours. "Should be around €3,000," they said.

Six months later, the project was still "almost done," and they'd paid €8,500. Every revision was billed. Every question was billed. Every "quick change" was billed.

The project finally launched, but the relationship was destroyed. They felt taken advantage of. The developer felt unappreciated. Nobody won.

That's the problem with hourly billing: it creates a conflict of interest. The longer a project takes, the more the developer makes. There's no incentive to work efficiently.

Why Startups Get Trapped

Startups operate in uncertainty. Your requirements change. Your market changes. Your priorities shift. In an hourly model, every change costs money. So you stop communicating. You stop asking questions. You stop refining your vision.

I've seen startups launch websites they're not happy with because they couldn't afford to keep iterating. They were watching the meter run, so they settled.

Fixed-price development eliminates this fear. You know the cost upfront. You can collaborate freely. You can ask questions. You can refine your vision. The cost doesn't change.

The Financial Planning Reality

When you're running a startup, budget predictability isn't nice to have—it's essential. You need to:

• Secure funding with confidence
• Allocate resources across departments
• Plan for growth
• Make informed decisions

With hourly billing, you're guessing. A project estimated at 40 hours might take 80. Your €5,000 budget becomes €10,000. Your runway gets shorter. Your stress gets higher.

With fixed-price development, you know exactly what you're paying. €49,99/month for a website. That's it. No surprises. No hidden costs. You can budget accurately and focus on growing your business.

How We Do It Differently

At TEDECA, we use a fixed-price model. Here's what that actually means:

Clear, upfront pricing - You know exactly what you're paying before we start. No estimates. No "probably around." Just a clear price.

Comprehensive scope - We define everything upfront. What's included. What's not. What costs extra. No surprises.

Transparent communication - You can ask questions. You can request changes. You can refine your vision. The price doesn't change.

Predictable costs - Your monthly cost is your monthly cost. It doesn't go up because we had a long call or you asked for a revision.

This isn't just about pricing—it's about partnership. We want you to succeed. We want to build something you're proud of. That's harder to do when you're watching the meter run.

The Real-World Example

Let me give you a real example. A SaaS startup came to us after working with an hourly agency. They'd paid €6,000 for a website that wasn't finished. They needed it done, but they were out of budget.

We built them a complete website for €49,99/month. Same quality. Same features. But they knew the cost upfront. They could budget for it. They could plan around it.

Six months later, their website is generating leads, they're happy with it, and they're not worried about surprise bills. The relationship is strong because there's no conflict of interest.

Making the Right Choice

When you're evaluating web development options, ask yourself:

Can I afford uncertainty? - If the answer is no (and for most startups, it is), choose fixed-price.

Do I need to communicate freely? - If you want to collaborate, ask questions, and refine your vision, choose fixed-price.

Do I need budget predictability? - If you're securing funding or planning resources, choose fixed-price.

Do I want a partnership? - If you want a developer who's incentivized to work efficiently and deliver value, choose fixed-price.

For most startups, the answer is clear: fixed-price development gives you the certainty, control, and partnership you need to succeed.

The Bottom Line

Hourly billing creates conflict. Fixed-price creates partnership. When you're running a startup, you need partners, not vendors.

At TEDECA, we've built our entire model around fixed pricing because we've seen what happens when startups work with hourly developers. The relationship breaks down. The project drags on. The costs spiral.

With fixed pricing, you know what you're getting. You know what you're paying. You can focus on what matters: growing your business.

Ready to work with a partner who respects your budget? Get your fixed-price quote in 24 hours and let's build something you're actually proud of.