Fixed rate vs hourly: which one do you fight for when clients push back?

I had a client last month in Cleveland who wanted me to switch my fixed project rate to hourly because they thought I was 'overcharging' for speed. I held my ground on the flat fee, explained that my $850 quote covered revisions and phone calls, not just the 6 hours I'd actually work. But now I'm second guessing because another client offered me a big retainer if I'd go hourly and track everything. The fixed rate protects my income when I work fast, but hourly feels more honest when scope creeps. I picked fixed and won that battle, but I lost the retainer chance. Which side do you all lean toward when the contract negotiation gets heated, and how do you explain it without sounding greedy?

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fionamurphy4d ago

Fixed rate protects you from exactly the kind of doubt you're feeling now, and that's worth more than a retainer that might turn into hourly nitpicking. The real trick is framing the flat fee as covering outcomes, not time, which is why I always say scope changes cost extra, not my hours. Losing that retainer stings, but hourly clients often question every line item, and that's a headache you already dodged.