What do you mean by "billing rates" .?

Question

This term appears in context of IT companies.

Answer 1

When a service company sells its services to its clients, it has to use a benchmark rate to charge out.

The staff will report how many hours they work, with different "billing rates" per hour depending on the experience/level of the staff and the difficulty of the project. Alternatively, billing rate can be priced on a "per project" basis rather than hourly.

Let's say you are going to install a server. You will probably charge $x for the server plus labor at $y billing rate for the senior engineer and $z billing rate for his junior engineer (who holds his tool bag, picks up the dry cleaning and so on).

Answer 2

Means how much does the service costs