Time, Utilization & Profitability
Blended Rate
Definition
A single average hourly rate combining team members with different bill rates. If a project uses a senior dev ($200/hr), junior dev ($100/hr), and PM ($120/hr), the blended rate might be $140/hr regardless of who's working.
Why It Matters
Simpler for clients but dangerous for agencies — it can mask situations where expensive team members are heavily involved, silently eroding margin.
Related Terms
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