Fixed Price vs Hourly Rate: Which Saves You Money?

"How much to..." is the opening of most enquiries. But how the price is structured matters as much as the number.

Fixed Price Explained

What it means: One price for the whole job, agreed upfront.

Example: "TV mounting with cable hide: £95"

Advantages

For you:

• Know exactly what you'll pay
• No anxiety about clock watching
• Easy to compare quotes
• Budget-friendly

For the tradesperson:

• Clear scope of work
• No time disputes
• Can be efficient without feeling like they're cheating you

Disadvantages

For you:

• May include buffer for unknowns
• Less flexible if scope changes
• Variations often charged extra

For the tradesperson:

• Takes the risk on job complexity
• No extra for complications
• May need to absorb unexpected issues

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Hourly Rate Explained

What it means: Pay for actual time spent, usually with a minimum charge.

Example: "£50/hour, minimum 1 hour (£60)"

Advantages

For you:

• Pay only for actual work
• Simple jobs cost less
• Flexible if job changes
• No "hidden" buffer

For the tradesperson:

• Fair payment for actual work
• Complications are covered
• Less quoting required

Disadvantages

For you:

• Uncertain final cost
• May worry about efficiency
• Harder to budget

For the tradesperson:

• Customer may dispute time
• Pressure to work fast
• Simple jobs may not hit minimum

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When Fixed Price Works Best

Well-Defined Jobs

Good candidates:

• TV mounting (wall type known)
• Flat pack assembly (specific items)
• Replace toilet seat
• Standard shelf hanging

Why: Scope is clear, time is predictable.

Jobs I've Done Many Times

If I know a PAX wardrobe takes 1.5-2 hours, I can quote confidently.

When You're Comparing Quotes

Fixed prices are easy to compare. "Company A: £100. Company B: £120." Simple.

High-Value Jobs

For bigger jobs, the certainty of a fixed price is valuable. No nasty surprises.

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When Hourly Works Best

Unknown Scope

Good candidates:

• "Can you take a look at this?"
• Diagnostic work
• Repair work where problem isn't clear
• Jobs where surprises are likely

Why: Until I know what's involved, I can't quote fairly.

Multiple Small Jobs

"I've got a list of bits" - harder to quote each individually. Easier to work through on time.

When Speed Matters for You

If you want corners cut to save money, hourly makes that your choice. Fixed price means I do it properly regardless.

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The Real Calculation

Fixed Price from Tradesperson's View

How it's calculated: Estimated time × rate + materials + buffer for unknowns

That buffer: On a straightforward job, it's small. On unknown jobs, it's larger.

Example

Job: Hang 3 shelves on brick wall

My calculation:

• Time: ~45 minutes
• My rate: £50/hour
• Fixings: ~£5 included
• Small buffer for unknowns

Fixed quote: £60

If I charged hourly: Probably £60 anyway (my minimum).

Where fixed can cost more: If the job goes perfectly and takes 30 minutes, fixed price doesn't reduce.

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Red Flags to Watch

With Fixed Prices

• Very low quotes: Are they cutting corners? Will "extras" appear?
• Vague scope: What exactly is included?
• No site visit for complex work: How can they quote accurately?

With Hourly Rates

• No estimate: Ask for expected time range
• No cap: On big jobs, agree a "not to exceed" limit
• Very slow progress: You're entitled to question if it seems excessive

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What I Recommend

For Simple, Known Jobs

Fixed price. Both parties know where they stand.

For Investigation or Unknowns

Hourly with estimate. "I think this will take 1-2 hours" gives you a guide while keeping it fair.

For Day Jobs

Day rate. If you've got a full day of work, a day rate (£300-£400) is often better than tracking every hour.

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My Approach

I usually quote:

• Fixed for: TV mounting, flat pack assembly, common repairs, anything I can predict
• Hourly for: Diagnostic work, unknown repairs, "while you're here" lists
• Estimate + hourly for: Jobs with some uncertainty

I'll always tell you: Before starting, you'll know how I'm charging and roughly what to expect.

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The Conversation to Have

When getting quotes:

1. "Is this fixed or hourly?"
2. "What's included?"
3. "What would be extra?"
4. "What if complications arise?"

A good tradesperson will be clear about this. Vagueness is a warning sign.

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Want a straightforward quote? I'll tell you exactly how the pricing works for your job. Call 01392 964094 or get a quote.