Quote a range or a single number? A simple way to decide

A client asks what a project will cost, and you have to answer before you know everything. Give one number and you may be stuck with it if the work grows. Give a range and the client may only hear the low end. This post explains when to use each, how to build a range from risks you can name, and how to keep it narrow enough to be useful.

The problem with one number

A single number sounds confident. It also turns every surprise into your cost.

Say you estimate a project at 80 hours, and your rate is $100 an hour. You quote 80 x 100 = $8,000. Then two ordinary risks happen: content arrives late and costs 10 extra hours, and a second round of revisions adds another 10. The project takes 100 hours.

You are paid $8,000 for 100 hours, which is 8,000 / 100 = $80 an hour. That is 20% below your rate, and nothing in the quote warned the client that this could happen. Example figures like these are only a guide, so use your own.

The problem with a vague range

A range can fail too. A range such as "$5,000 to $20,000" tells the client you do not understand the work yet. It also invites them to plan around the low end.

A useful range is narrow enough to budget against, and its top has a reason behind it.

When a single number fits

A fixed number works best when:

• The scope is clear. You have a written list of what is included and what is not.
• You have done it before. Similar past projects show how long it takes.
• The client needs certainty. They have a fixed budget and need to approve one figure.

In these cases, protect yourself with written assumptions and a change process. How to prevent scope creep with clear change orders explains how to handle extras without arguments.

When a range fits

A range is the better choice when:

• The scope is still forming. The client has an idea but not a full brief.
• There are unknowns you cannot check yet. For example, the state of an existing system.
• It is an early conversation. The client wants a sense of scale before committing time to a longer process.

A range is also an honest way to say, "This is what I expect, and this is how far it could go."

Build the range from named risks

Do not pick the top figure by feel. Build it from risks that you can name.

Start with your likely estimate. In the example, that is 80 hours, or $8,000. Then list the two or three things most likely to add time, and estimate each:

• Late content. Rescheduling and restarting adds 10 hours.
• An extra revision round. Adds 10 hours.
• Slow approvals. Adds 5 hours of waiting and chasing.

If you expect that any two of these might happen, add the two largest: 10 + 10 = 20 hours. The high end is 80 + 20 = 100 hours, which is 100 x 100 = $10,000.

Your range is $8,000 to $10,000. The top has a reason you can explain, and you can show the client which risks it covers. To check the $100 rate used in these examples, see how to set your agency's hourly rate.

Keep the range narrow

Divide the high end by the low end. In the example, 10,000 / 8,000 = 1.25, so the top is 25% above the bottom.

As a rule of thumb, a range wider than about 1.5 times the low end suggests you do not know the work well enough yet. If you see that, do more scoping before you quote, or split the project into a smaller first step. This is a rule of thumb, not a fixed law, so adjust it for your own work.

Say what the range depends on

A range without conditions will be read as the low figure. Write the conditions beside it:

• What is included. List the main deliverables.
• What would move it up. Name the risks that push toward the top.
• How it becomes a fixed price. Say what must happen next, for example "we will confirm a fixed price after the first workshop".

A short sentence is enough: "We estimate $8,000 to $10,000. The higher figure applies if content arrives late or we need more than two rounds of revisions."

Narrow the range with a short discovery step

Often the best way to turn a range into a number is a short, paid first step that removes the biggest unknowns. A good first call also helps. Discovery call: 12 questions that save you from bad projects lists questions that bring scope and budget into the open.

When the unknowns are settled, quote a fixed figure inside your original range. The client then sees that the first range was honest.

Choose with your pricing model

The choice also depends on how you charge. A fixed price needs a firm number, an hourly arrangement works well with a range, and a retainer has its own structure. Hourly, fixed fee or retainer: how to choose a pricing model helps you decide which one fits.

Track what really happened

After each project, record the estimated hours and the actual hours, and note where the range was right or wrong. After a few projects, you will see how wide your ranges need to be.

HireOrSell can record time against projects and mark it billable or non-billable on its paid plans, which gives you the actual hours. Check the pricing page for current plan details. A spreadsheet works too.

Next step

Take your next quote and write the likely figure, then list the two risks most likely to add time. Add them to find the high end, and divide it by the low end. If the ratio is above about 1.5, scope more before you quote. Write the conditions next to the range.