What is Rate Card?
A published document listing an agency's standard pricing for services, typically organized by role, service type, or deliverable, used as a starting point for client negotiations.
Definition
Related Terms
Value-Based Pricing
Pricing based on the value delivered to clients rather than time spent or costs incurred. Value-based pricing allows agencies to capture more value and align pricing with client outcomes.
Hourly vs Project-Based Billing
Two primary billing models: hourly billing charges for time spent, while project-based billing charges a fixed fee for deliverables. Each has advantages and trade-offs for agencies and clients.
Cost-Plus Pricing
A pricing method that adds a markup percentage to costs to determine price. Cost-plus pricing ensures costs are covered but may not capture full value.
Agency Markup
The percentage or fixed amount added to vendor costs when agencies purchase services or products on behalf of clients. Markup compensates agencies for procurement, management, and risk.
Related Resources
Frequently Asked Questions
Should I publish my rate card on my website?
Most agencies keep rate cards as internal or semi-private documents. Publishing rates can invite price shopping and commoditize your services. Instead, share rate cards with qualified prospects during the sales process when you can provide context about the value behind the pricing.
How often should I update my rate card?
Review annually at minimum. Update when your costs increase, when you add new services or roles, or when market rates shift. Many agencies raise rates 5-10% annually to account for inflation and growing expertise. Communicate changes to existing clients with advance notice.
Should rate cards list hourly rates or project prices?
Both approaches work. Hourly rates by role are common for time-and-materials work. Fixed prices for deliverables work better for productized services. Many agencies include both—hourly rates for custom work and package pricing for standard offerings.
Put These Concepts Into Practice
AgencyPro helps you implement these concepts with tools for project management, billing, client relationships, and more.