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February 10, 2026·Engineering·5 min read

Why fixed-fee beats hourly for software projects

Hourly billing aligns the studio's incentives against the client's. Here's how we structure fixed-fee engagements that protect both sides — and what we do when scope changes.

PricingProcessStudio

Hourly billing is a perverse incentive. The slower we work, the more we get paid. The more bugs we ship, the more we charge to fix them. The more meetings we run, the higher your invoice.

How we price Every Bug Bakery engagement is fixed-fee per phase. We scope tightly in week one, and the price doesn't move unless the scope does — explicitly, in writing, with you signing off.

What happens when scope changes It will. It always does. Here's the playbook: 1. We tell you the moment we notice it, not at the end of the sprint. 2. We give you three options: descope, defer to v2, or scope-change with a fixed price. 3. You pick. We don't proceed until we hear back.

Why this works for both sides You know your number. We know our deadline. Nobody is incentivized to drag it out. Everyone is incentivized to ship.

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