Average Billable Rate (ABR)
A profitability metric calculated by dividing total revenue by total billable hours, showing the effective hourly rate the agency actually earns.
Test different pricing strategies and see how they affect your profit margins, client acquisition, and overall revenue.
Example
An agency bills $50,000 in a month and logs 400 billable hours, resulting in an ABR of $125/hour. Comparing this to their blended cost of $65/hour confirms healthy margins. When ABR drops to $95 the next month, they investigate and find a fixed-fee project ran over scope.
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