Sure it’s the way to go, for THEM.
They can get the same price for working you ten hours or twenty or fifty, that’s a GREAT deal. FOR THEM.
If you are not very careful, you could wind up working for less than minimum wage on a fixed-price schedule. Smaller projects, lower-budget projects, can be MORE complicated than expensive label-sponsored endeavors. When they are paying Spike Jonez six figures or more to make a video, they can afford everything to be top of the line, so as to minimize the unknowns. Everything is planned out, storyboarded, tested, approved.
When it’s some garage band that’s not even on Myspace yet, you usually have more constrictions on budget and staff, more compromises to make, more chances for problems to crop up that will need a time-consuming fix in post. You need to be paid well for that extra time, effort, and creativity that saves the project.
A fixed price does not allow for that. You can charge a fixed price for dubbing DVD’s because it’s a mechanical process that never varies and is identical all the way: you load a machine with blanks, you pick up the finished units. The editing and design work is craftsmanship, these things are hand-wrought, not stamped out. I feel strongly about this.
If you set a fixed price you will either be overcharging for the finished product, which is good for your immediate bottom line but hurts your future marketability, and cuases unfair comparisons to your work quality versus the value, (“you paid HOW MUCH for THAT?”) or you lowball it and lose money on the deal, which pegs you as a poor businessman and a risk, or worse, an easy mark for people that want to take advantage of you. When you try to raise the rates later, or compete for higher-level projects, you are never seriously considered. You get buttonholed as “the low budget guy”. Instead of “it’s worth what it’s worth”.