What is a Service Rate?
The service rate is the amount we charge our clients to use a service. Service rates are based on the total costs to build, deliver and support the service, as well as the service objectives. For example, do you want to completely recover the costs to provide your service ('break-even')? Or are you more interested in growing the client-base through subsidizing some portion of the costs? A financial analyst will work with you to understand your goals and develop a rate that will achieve your objectives
Why do I need a Service Rate?
Developing a rate is necessary in order to charge for your service. In order to develop a rate, you must have completed a service costing and have a clear understanding of the financial goals for your service.
Types of charges and rates include:
- Monthly Recurring Charges (MRC): This is the rate charged each month for use of the service.
- One-time charges (OCC): These are typically one-time costs to set up the service.
- Time and Materials - This is a common type of charge for consulting services where clients pay an hourly rate for services provided.
How do I develop or modify a rate?
|I want to:||Here’s how:||When||Who is responsible?|
|Develop a new rate or modify an existing rate||
During the process of costing your service, the financial analyst assigned to work with you will also discuss developing a rate.
Request assistance to develop a new rate or modify and existing one.
|After costing the service||Service manager and finance analyst|