What Different Payment Methods Does Matraex Use?
There are two different ways that Matraex charges for payment: the scoped payment method and the retainer payment. Most of our clients pay by retainer, but that method is not right for everyone. Read more about the two different ways that we charge for payment of our custom apps, and let’s discuss which method may be right for you.
What is the scoped payment method?
The scope of a project is exactly what needs to be done to complete a project, the time involved to complete a project, and the amount the project is going to cost due to the project parameters and the time involved. Therefore, a scoped payment method can be implemented when the exact scope of a project and its price is determined prior to the project being started. The scoped payment method has no room for adjustment or change whatsoever. Whatever is determined regarding scope and payment are inflexible once determined.
What types of projects are best suited for a scoped payment method?
The scoped payment method is ideal when all of the parameters of a software project are completely determined ahead of time and there’s no chance it is going to change. The price given for the project is a “guesstimate,” which means that there is a chance you will overpay or underpay for the project in mind, but once the price is determined, the price is set regardless of what the end results are.
What is the retainer payment method?
The retainer payment method is a continuous contract between Matraex and the product owner in which the product owner pays Matraex an agreed upon amount every month ($5000+), which covers Matraex working on the project for a determined amount of hours during the month until the scope of the project is met. Matraex will allocate those hours towards specific goals set between the project owner and the developer and Matraex will notify the product owner when funds are running low, if necessary.
What types of projects are best suited for the retainer payment method?
The retainer payment method is best when the scope is subject to change as the project develops or the entirety scope is unknown. Ongoing collaboration is necessary when using the retainer method to ensure that the developer is making continual progress towards meeting the scope and should the development begin straying from the vision of the product owner, it can be redirected before a lot of time and money is spent. You can read our article about scope creep and other problems product owners have with their software projects here.
Can you break down how hours are utilized when paying under the retainer method?
Matraex has very sophisticated processes in place to closely track and report on the time used. These processes will be explained in depth during the visionary’s discovery meetings prior to signing a contract. In short, we provide a report which includes line items with the number of hours spent and a description of the work performed. We also use ID numbers to tie the items on the invoice to our email communication about individual features. Our clients have commented on how easy it is to understand our line items.
When paying by retainer, how does Matraex handle unused, paid time ?
We reserve capacity on our team to meet the full retainer each month. However, if there is a remaining balance at the end of the month, perhaps because the full amount of time was not required for the particular part of the scope we were working on, the balance will be rolled over into the following month.
We hope that this explanation of the scope and retainer payment method helped to clear up any confusion you may have had about how Matraex accepts payments. Please contact us online or call us at (208) 344-1115 if you have any further questions. You can also check out the Matraex blog for answers to other app development questions you may have. We look forward to talking with you about your custom software project.