Agency billing rates must cover staff cost, overhead, profit margin, and non-billable time. Understanding the true rate needed prevents unprofitable project pricing.
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Pro Tip
Track actual hours spent on each project for 3 months - most agencies discover they spend 20-30% more hours than estimated, quietly eroding margin.
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Did You Know?
Management consulting firms charge 800-2,000+ GBP/hour for senior consultants, with utilisation rates of 65-75% and margins of 30-40%.
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