Commercial
Blended rate
One averaged rate charged across a team of mixed seniority.
Definition
A single hourly or daily price applied to everyone on an engagement regardless of their level, calculated from an assumed mix of senior and junior people. It simplifies billing and removes the argument about who did which hour.
Why it matters
The failure mode is the mix quietly drifting junior while the rate stays put. If you agree a blended rate, write down the seniority mix it assumes and ask for the actual mix each month. Without that, a blended rate is a discount you granted in advance and never received.
Related
Read next
All-in rate
A single rate that already contains every cost the provider will charge.
Read the definition ›Rate card
The provider's published prices by role and seniority.
Read the definition ›Utilisation rate
The share of paid hours a provider actually bills to clients.
Read the definition ›Full-time equivalent (FTE)
A unit of capacity equal to one person working a full week.
Read the definition ›Next step
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