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What is industry standard for charge out rate per story point

Sonal Chaugule
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September 23, 2024

how to get industry standard for charge out rate per story point

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Walter Buggenhout
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September 23, 2024

Hi @Sonal Chaugule and welcome to the Community!

Quite simply: story points are not a measure for charging a customer. They are for estimating the complexity of work for your team. They can easily be translated into something like t-shirt sizes (Small - Medium - Large - Extra Large). Unless you sell clothing items (and even then ...), I would not link pricing to this. I would rather look at cost and margins for the work you deliver instead, whatever it takes to determine those.

With different teams in your organization, story points for one team can have the same complexity (e.g. medium), but require a very different amount of work. Team A can complete a medium item in a day, while a medium item for another team may take 3 days to complete, as they may work in a different technology, have more integrations to take into account, suffer from technical debt or have a different maturity level in the team (just to name a few factors).

Hope this helps!

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