DEFINITION of 'Day Rate'
The price/cost of a particular service for a day's period. In some markets it is referred to as "per diem" (cost that an organization will pay for one days' work) and often translates to a 7.5 hour work day. Some purchasing organizations prefer a quoted day rate instead of an hourly rate for services.
BREAKING DOWN 'Day Rate'
Common examples of a day rate would be:
- the rate of pay for a day's manual labor by a worker
- the price for a hotel room when no overnight stay is required/utilized
- the quoted price for contractor work done onsite for a client