Fixed pricing for early-stage projects creates problems because scope, expectations, and deliverables are unclear at the start. Undefined payment milestones cause delays, and scope creep happens when clients' mental models of the work expand beyond what was agreed.
What is wrong with fixed pricing? There's nothing wrong with fixed fee pricing. It is just initially, there's just a lot of unknowns. You don't know what's included, what's not included. You don't know what is it the customer will be doing. You don't know if you have payment milestones. It might take forever for these milestones to be accomplished. There's a huge risk of something called scope creep, where you're thinking you're building something this big and the client in their mind, they have something this big.
