What Rate Structure is Best for You?

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Function Point recommends you choose from one of three options for setting up your rates. Option1 uses Service Rates, Option 2 for Staff Rates, and Option 3 for Role Rates. Below please find some client examples that might help you determine which option is best for your organization.

Option 1 - Using Service Rates

Lannister Design are a 15 person firm, with a focus on rebranding campaigns and logo re-deigns for web and print. Lannister have 3 rate cards - their Standard Rate, a rate for Non-Profit clients, and a Rush Rate. When estimating, Lannister enter an estimated number of hours to complete a service, which multiplies by the hourly rate and builds up the estimate total. When work has been landed and staff begin to track time for the work they perform, each staff member is billed out at the same amount as the rate card, regardless of the staff member working on the service.

See more on Option 1: Service Rates.

Option 2 - Using Staff Rates

Stark & Company are a 50 person agency. They specialize in advertising design, and have several large automotive clients. Stark build their estimates based on who will be working on something. For example, an estimate which includes image research may be worked on by both John - a junior designer with an hourly bill out rate of $65/ hour - and Edward - a company principal with an hourly bill out rate of $120/ hour. The estimate total will be based upon the number of estimated hours, by the hourly rate of the staff person selected to perform some or all of the service.

See more on Option 2: Staff Rates

Option 3 - Using Role Rates

Riverlands Marketing are a team of 35, that includes senior designers, junior designers, copywriters, project managers and SEO specialists. When building estimates, they are usually not sure what specific team member will be performing the work, but they do know what role (ie.. Copywriter) will be. Each role has its own hourly value for work performed. For example, a junior designer rate is $75/ hour, and a senior designer rate $125/ hour. An estimate that includes design will have its total based on (for example) 4 hours of the junior designer time, and 1 of the senior.

See more on Option 3: Role Rates

We welcome your questions or concerns about rates: support@functionpoint.com


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