Fixed Price

A model of pricing clause included in a contract where a defined amount is paid for a particular product, service, or goal. In a fixed-price compensation program, the buyer and supplier agree to a “price.” The fixed price might relate to an individual transaction (e.g., the price per call, per minute, per FTE, per square foot, per unit, per shipment, etc.) or to a bundled set of transactions altogether (e.g., fixed monthly management fee to manage IT maintenance).