> For the complete documentation index, see [llms.txt](https://docs.darcyiq.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.darcyiq.com/settings-and-configuration/scoping-configuration/rate-cards.md).

# 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.

<figure><img src="/files/Ncq8FkhWXOiGUlNcnwiM" alt=""><figcaption></figcaption></figure>

## 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](/settings-and-configuration/scoping-configuration/templates.md)

**\[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](/settings-and-configuration/scoping-configuration/templates.md) - Link rate cards to templates
* [Historical Insights](/settings-and-configuration/scoping-configuration/historical-insights.md) - Optimize rates based on demand patterns
* [Scoping & Estimates](/grow/scoping-estimates.md) - Use rate cards in scoping
* [Organization Management](/settings-and-configuration/organization-management.md) - Organization-wide settings

***

**Ready to create your first rate card?** Navigate to **Settings** → **Scoping Configuration** → **Rate Cards** and click **Create Rate Card**.


---

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