Fixed Pricing Advantages
Fixed pricing is intended to attract more customers and clients because it offers them assurances. On project work, for instance, a fixed price for the entirety of the job allows the prospective client to know how much he will pay prior to agreement. Fixed pricing is also consistent, so customers get used to your pricing and you have less risk of offending them by fluctuating prices over time.
Fixed Pricing Disadvantages
The risk with fixed pricing is that it doesn't allow for adjustments if you get into product or service delivery and realize your cost basis is higher than expected. The customer pays the established price regardless of changes in your time or costs. This may mean you undercharge a customer due to a lot of additional work hours beyond those estimated in the price quote. Fixed pricing also doesn't allow for adjustments over time to sell off extra inventory or available seats for entertainment and other types of events.