Rate Economics

Rate Economics

What an hour of the team's time actually earns once it reaches a client, and what that same hour costs to deliver. The gap between the two is where margin is made or lost.

Effective bill rate by client

The price per hour each client actually pays, once the fee is spread across the hours the client takes.

Bill rate versus cost rate over time

The effective price per hour next to the cost of an hour, month by month. The space between the two lines is the margin per hour the agency keeps.

Margin per hour by client

The implied bill rate less the cost of delivery, per hour, by client. Where the bar sits at or below zero, the client is priced below what it costs to serve.