Pitcher's Poker - Part 2

If after thinking about the stuff in part 1, you're still in the pitch, look across the table. Stop thinking about yourself for a second and think about your customer. How well does this fixed-price pitching work for them? If you really know about Agile methods, you know that a successful fixed price, fixed effort, fixed scope project is just not possible. From your client's point of view there are three possibilities. (1) they don't know that - in which case, they've probably had lots of unpleasant experiences of buying software development in the past, (and are probably about to have another one), (2) they do know that and are confident they can bully and cajole you into delivering everything they want for the initial price with as much extra free effort from you and your colleagues as it takes or (3) they have a contingency budget that they are not telling you about because they know from experience that fixed price work always leads to either cutting the original specification or paying more to get what was on the original (in this scenario they are beginning to play with notions of iteration even if they don't know it as such). Which of these is it? Maybe it's a bit of all three. It would be good to know.