Day rate

The day rate is the most common pricing basis in Europe for consulting and staff augmentation engagements. It is expressed in euros per day and varies by role, seniority and geography: typically from 400€ for a junior up to 1,500-2,000€ for a partner.

It is important to distinguish the sell day rate (bill rate) from the cost day rate, which includes gross salary, payroll taxes, benefits and overhead. The ratio between the two determines daily gross margin: an 800€ day rate with a 400€ cost rate yields a 50% margin, in line with market benchmarks.

Rates travel with contracts rather than with projects, which is why they need an effective date and a warning when they lapse. As soon as a firm works with several clients, each with negotiated terms, the same role carries different prices with annual uplifts and volume discounts; keeping that in a spreadsheet guarantees that an invoice will eventually go out on a rate agreed two years ago.

A blended day rate is convenient for a proposal and dangerous for a plan. It hides which roles the project actually consumes, so a delivery that quietly shifts toward more senior people looks identical in the revenue line while the margin falls. Quoting by role, and tracking delivery by role, keeps that shift visible while there is still time to staff differently.