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Blanket Rate
Glossaries
| Term | Definition |
|---|---|
| Blanket Rate | The Blanket Rate ( or flat rate) is a single, fixed, and predetermined rate that covers a wide range of services, quantities, or conditions, instead of calculating the price for every single item, hour, or variable. It is a fixed price or all-inclusive price that drastically simplifies quoting and invoicing. It is often the economic component that governs a Blanket Contract. What is it for / Why is it importantThe main purpose of the blanket rate is simplicity and predictability. It is important because:
When is it used / In what context is it usefulIt is a pricing method widely used when a service is continuous or when a "package" of results is being sold.
Practical ExampleA company needs constant maintenance for its e-commerce website. Instead of paying by the hour for every single intervention (which could cost €50 one month and €500 the next), they agree on a blanket rate of €300/month with a web agency. This rate covers all security updates, text modifications, and bug fixes, up to a maximum (for example) of 10 hours. The client has a fixed cost and the agency has stable revenue. Extra InsightA common form of blanket rate in an agency is the "blended rate" (mixed hourly rate). Instead of invoicing the client different rates for each professional (e.g., Junior Designer at €50/h, Art Director at €120/h, Copywriter at €80/h), the agency proposes a single "blended" average hourly rate (e.g., €90/h) that applies to any resource working on the project. This is, effectively, an hourly blanket rate. |
