# Rate Cards Rate cards provide centralized, organization-wide pricing information for your scoping estimates. By maintaining rate cards, you ensure consistent pricing across all estimates while making it easy to update rates as your business evolves. ## Overview A rate card is a collection of billable items (roles, products, services) with their associated rates. When linked to scoping templates, rate cards automatically populate pricing calculations, eliminating manual rate entry and reducing errors.
## Why Use Rate Cards? | Benefit | Description | | --------------- | ----------------------------------------------------------- | | **Consistency** | Same rates used across all estimates | | **Efficiency** | No manual rate entry per estimate | | **Flexibility** | Update rates once, applies everywhere | | **Accuracy** | Reduce pricing errors and inconsistencies | | **Margins** | Track cost rates for profitability analysis | | **Automation** | Support for calculated fields (percentages, step functions) | ## Creating a Rate Card ### Access Rate Card Management 1. Navigate to **Settings** in the top navigation 2. Select **Organization -> Scoping Configuration** from the sidebar 3. Click on the **Rate Cards** tab 4. Click **Create Rate Card** ### Basic Information | Field | Description | Required | | --------------------- | --------------------------------------------------------- | -------- | | **Name** | Descriptive name (e.g., "Standard Consulting Rates 2024") | Yes | | **Description** | Optional details about this rate card | No | | **Default Rate Card** | Mark as organization default | No | {% hint style="success" %} **Default Rate Cards** are automatically selected when creating new templates, streamlining your setup process. {% endhint %} ## Rate Card Items Each rate card contains multiple items representing billable roles, products, or services. ### Standard Rate Items Standard items have fixed rates: | Field | Purpose | Example | | ---------------- | ------------------------ | ----------------------- | | **Name (Label)** | Display name | "Senior Cloud Engineer" | | **Rate** | Billing rate | $200 | | **Cost Rate** | Internal cost (optional) | $150 | | **Unit** | Rate unit | "hour" | | **Active** | Enable/disable item | ✓ Active | ### Calculated Field Items Calculated fields automatically compute rates based on project totals, perfect for overhead items like project management or buffers. #### Fixed Percentage Calculation Calculates a fixed percentage of the total project cost: **Example: Project Management** * Type: Fixed Percentage * Percentage: 15% * If project subtotal = $100,000, PM cost = $15,000 **Common Use Cases:** * Project Management (10-15% of project) * Quality Assurance (10-20% of development hours) * Contingency/Buffer (5-10% of total) * Administrative Overhead (5% of project) #### Step Function Calculation Applies different percentages based on project size thresholds: **Example: Volume Discount** ``` Hours | Percentage 0-100 | 10% 100-250 | 15% 250+ | 20% ``` For a 300-hour project, the rate would be 20%. **Common Use Cases:** * Volume discounts (larger projects get higher rates) * Complexity premiums (more hours = more complex) * Tiered support packages * Scalable overhead rates ### Cost Rates for Margin Analysis Add optional cost rates to track profitability: ``` Rate Item: Senior Cloud Engineer - Billing Rate: $200/hour - Cost Rate: $150/hour - Margin per hour: $50 (25%) ``` Cost rates enable: * Gross margin calculations * Profitability analysis per estimate * Resource optimization insights * Pricing strategy decisions {% hint style="info" %} **Security Note**: Cost rates are never exposed in client-facing exports or sharing. They're internal-only for margin analysis. {% endhint %} ## Managing Rate Card Items ### Adding Items 1. In the rate card editor, click **Add Item** 2. Enter the item name (e.g., "Cloud Architect") 3. Choose item type: Standard, Fixed Percentage, or Step Function 4. Enter rate and optional cost rate 5. Set the unit (typically "hour") 6. Ensure item is marked Active ### Editing Items * Click the **Edit** button on any item * Update rates, labels, or calculation settings * Changes apply to future estimates using this rate card ### Activating/Deactivating Items Use the **Active** toggle to hide items without deleting them: * **Active**: Item appears in scoping estimates * **Inactive**: Item hidden but data preserved **When to Deactivate:** * Seasonal rates (bring back later) * Deprecated roles (historical data preserved) * Temporary rate changes (switch active/inactive) ### Deleting Items To permanently remove an item: 1. Click the **Delete** button 2. Confirm deletion 3. Item is removed from the rate card {% hint style="danger" %} **Warning**: Deleting rate card items doesn't affect existing estimates, but they won't receive future rate updates for that item. {% endhint %} ## Rate Card Strategies ### Single Rate Card Approach **Best for:** Small organizations, single service offering, simple pricing **Structure:** ``` Standard Consulting Rates 2024 - Solution Architect: $250/hour - Senior Cloud Engineer: $200/hour - Cloud Engineer: $175/hour - Data Engineer: $200/hour - Project Manager: $175/hour - QA Engineer: $150/hour - Project Management (Calculated): 15% ``` **Pros:** * Simple to manage * Easy to update * Consistent across organization **Cons:** * Doesn't account for different service tiers * May not fit all engagement types *** ### Multi-Card Approach **Best for:** Multiple service tiers, different engagement types, regional pricing **Structure:** ``` Premium Consulting Rates - Senior Solution Architect: $300/hour - ... Standard Consulting Rates - Solution Architect: $250/hour - ... Staff Augmentation Rates - Cloud Engineer: $150/hour - ... Product Implementation Rates - Enterprise License: $50,000 - Professional Services: $200/hour - ... ``` **Pros:** * Flexible for different scenarios * Clear pricing tiers * Better margin control **Cons:** * More cards to maintain * Need to select correct card *** ### Hybrid Approach **Best for:** Medium organizations with some complexity **Structure:** ``` Primary Rates (Default) - All standard roles - Standard calculated fields Premium Rates - Same roles, higher rates - Used selectively for strategic accounts ``` **Pros:** * Most work uses simple default * Premium option available when needed * Manageable complexity **Cons:** * Requires discipline in card selection ## Calculated Fields Deep Dive ### Fixed Percentage Examples **Project Management (15%)** ``` Type: Fixed Percentage Value: 15% Application: Applied to total project cost ``` **Quality Assurance (20% of Dev Hours)** ``` Type: Fixed Percentage Value: 20% Application: Applied to development tasks only (filter in estimate) ``` **Administrative Overhead (5%)** ``` Type: Fixed Percentage Value: 5% Application: Applied to all billable hours ``` ### Step Function Examples **Volume Pricing** ``` Threshold | Percentage 0 hours | 0% 100 hours | 5% 250 hours | 10% 500 hours | 15% Interpretation: Projects get a percentage boost based on size ``` **Complexity Premium** ``` Threshold | Percentage 0 hours | 10% 150 hours | 15% 300 hours | 20% Interpretation: Larger/more complex projects warrant higher PM percentage ``` **Early-Bird Discount (Inverse)** ``` Threshold | Percentage 0 hours | 10% (standard) 200 hours | 8% (discount for larger projects) ``` {% hint style="info" %} **Pro Tip**: Step functions can represent discounts (decreasing percentages) or premiums (increasing percentages) based on your pricing strategy. {% endhint %} ## Linking Rate Cards to Templates Rate cards are linked at the template level: 1. Create or edit a scoping template 2. Navigate to **Level of Effort Configuration** 3. Select your rate card from the **Rate Card** dropdown 4. Rate card items automatically populate the role/product options 5. Save the template **Benefits of Linking:** * Automatic pricing in all estimates using that template * Rate updates flow through automatically * Consistent options across estimates * Reduced setup time per estimate Learn more: [Templates Configuration](https://docs.darcyiq.com/settings-and-configuration/scoping-configuration/templates) **\[Image Placeholder: Rate Card Linked to Template]** ## Updating Rates ### Annual Rate Updates Most organizations update rates annually: 1. **Option A - Edit Existing Card** * Edit the current rate card * Update all item rates * Changes apply to new estimates immediately 2. **Option B - Create New Card** * Create "Standard Rates 2025" * Copy items from previous year * Update rates * Switch templates to new card * Keep old card for historical reference **Recommendation:** Option B provides better audit trail and allows side-by-side comparison. ### Mid-Year Adjustments For rate changes mid-year: 1. Edit the existing rate card 2. Update affected items 3. New estimates use new rates 4. Existing estimates unchanged {% hint style="warning" %} **Best Practice**: Document rate changes in the rate card description field for future reference. {% endhint %} ## Rate Card Organization Tips ### Naming Conventions Use clear, descriptive names: * ✅ "Standard Consulting Rates 2024" * ✅ "Premium AWS Services Rates" * ✅ "Staff Aug Rates - East Region" * ❌ "Rates" * ❌ "Card 1" * ❌ "New Rate Card" ### Item Naming Keep item names consistent: * ✅ "Senior Cloud Engineer" * ✅ "Cloud Engineer" * ✅ "Junior Cloud Engineer" * ❌ "Sr Cloud Eng" * ❌ "Cloud Engineer (Senior)" ### Description Usage Use the description field to document: * Effective date range * Approval status * Target margin * Special considerations * Change history **Example:** ``` Standard Consulting Rates 2024 Effective: January 1, 2024 Target Margin: 25% Last Updated: Dec 15, 2023 Approved by: CFO Notes: 8% increase over 2023 rates ``` ## Frequently Asked Questions **Q: What happens to existing estimates when I update a rate card?**\ A: Existing estimates are not affected. Only new estimates or re-calculations will use the updated rates. **Q: Can I have different rates for different customers?**\ A: Create multiple rate cards (Standard, Premium, Strategic) and select the appropriate card when creating templates or estimates. **Q: How do calculated fields work in pricing?**\ A: Calculated fields automatically add hours/cost based on the total. For example, a 15% PM field on a $100k project adds $15k automatically. **Q: Can I delete a rate card that's linked to templates?**\ A: Yes, but templates will lose their pricing automation. You'll need to link a new rate card or switch to manual options. **Q: What's the difference between Rate and Cost Rate?**\ A: Rate is what you bill clients. Cost Rate is your internal cost (salary, contractor cost, etc.) used for margin analysis. **Q: How many items should a rate card have?**\ A: Only include items you actually use in estimates. Most rate cards have 5-15 items. More items make selection harder. **Q: Can I import rates from a spreadsheet?**\ A: Not currently. Rate cards must be created through the UI. **Q: Do inactive items disappear from existing estimates?**\ A: No. Inactive items are hidden from new selections but remain visible in existing estimates where they were used. ## Advanced Use Cases ### Multi-Regional Pricing Create separate rate cards per region: ``` North America Rates - Cloud Engineer: $200/hour EMEA Rates - Cloud Engineer: €180/hour APAC Rates - Cloud Engineer: $180/hour ``` ### Service-Tier Pricing Different rate cards for service levels: ``` Enterprise Support - Premium Engineer: $300/hour - 24/7 Availability Premium: 50% Standard Support - Engineer: $200/hour - Business Hours Only ``` ### Product + Services Bundling Combine products and services in one rate card: ``` Cloud Platform Implementation - Platform License: $50,000 (quantity) - Solution Architect: $250/hour - Cloud Engineer: $200/hour - Training: $2,000/day - Support Package: 15% (calculated) ``` ## Related Documentation * [Templates Configuration](https://docs.darcyiq.com/settings-and-configuration/scoping-configuration/templates) - Link rate cards to templates * [Historical Insights](https://docs.darcyiq.com/settings-and-configuration/scoping-configuration/historical-insights) - Optimize rates based on demand patterns * [Scoping & Estimates](https://docs.darcyiq.com/workspace/scoping-estimates) - Use rate cards in scoping * [Organization Management](https://docs.darcyiq.com/settings-and-configuration/organization-management) - Organization-wide settings *** **Ready to create your first rate card?** Navigate to **Settings** → **Scoping Configuration** → **Rate Cards** and click **Create Rate Card**.