The blind spot in freelance purchasing: Why 80% of companies are in the dark when it comes to prices

1,350 euros or 1,150 euros? This 200-euro difference per day quickly adds up to 36,000 euros for a nine-month project. The difference? Often just the amount of the agency margin – without the purchasing department knowing about it. A recent survey of 50 purchasing managers reveals alarming figures: 80 percent have no insight into the actual cost structures of their freelance assignments. They only know the final price, but not how it is composed. This is an expensive problem that costs millions every year.

The transparency paradox: everyone wants it, no one has it

“I only know the sales price to me as a customer, but I don't know what the freelancer charges,” sums up an experienced buyer from the automotive industry. This lack of transparency is not an isolated case, but systematic.

The four main reasons for the price black box

1. The margin secret Intermediaries only quote the total price. How much of that goes to the freelancer? It's unclear. The reason is simple: many recruiters are incentivized by the size of the margin. The higher the markup, the greater the personal bonus. Transparency would jeopardize their own business model.

2. Hourly rates The market for freelancer daily rates fluctuates like the stock market. The same UX designer who charges €1,100 today is offering her services for €800 six months later – a price drop of 27 percent. This volatility makes long-term budget planning a matter of luck.

3. Every profile is unique From senior cloud architect to prompt engineer—every role is different. New positions are constantly emerging, while old ones disappear. Standardization? Almost impossible. Rate cards may still work for a Java developer, but what about a blockchain specialist or an AI ethics consultant?

4. Lack of market data Without reliable benchmarks, every price negotiation becomes a shot in the dark. Is a daily rate of $950 for an SAP consultant reasonable or overpriced? Without comparative values, buyers are left in the dark.

The hidden cost driver: When 15% suddenly becomes 35%

The reality is often as follows: A freelancer charges a daily rate of €1,000. The agency adds between 15 and 35 percent – sometimes even more. For a nine-month project (180 working days), this means:

• With a 15% margin: total costs of €207,000
• With a 35% margin: total costs of €243,000
• Difference: €36,000 – for the same service

The solution: Data instead of gut feeling

1. Demand transparency – but do it right The “open book policy” is more than just a buzzword. Successful buyers firmly anchor the disclosure of margins in the framework agreement. The key is not to phrase it as a request, but as a condition for exclusivity or preferential payment terms. Practical example: By consistently ensuring margin transparency, a DAX-listed company was able to reduce its average agency fees from 28% to 18% – while maintaining the same level of quality. Savings: €1.2 million per year.

2. Intelligent benchmarking with AI Modern tools not only show current market prices, but also evaluate them in context. An example: The average hourly rate for IT freelancers in 2025 is 104 euros. But what does that mean for a specialized cloud architect in Munich versus a junior developer in Dresden?

3. Dynamic market observation “Every year, we conduct an exercise on current rates,” explains the head of procurement at a German technology group, describing his strategy. His team uses official price indices and tracks seniority and daily rates for each assignment. The result: a sound basis for negotiation that provides confidence in the arguments presented.

The benchmark advantage: knowing what the market has to offer

Imagine if you could immediately see the following for every freelancer request:

• How the requested daily rate compares to the market
• Whether the price is appropriate for this qualification
• What price range is typical for similar profiles

This is exactly what modern AI-based benchmarking tools enable. They analyze thousands of freelancer profiles in real time and provide objective price estimates—based not on gut feeling, but on hard data.

The advantages at a glance:

✓ Instant market assessment: Is the freelancer 20% above or below market price? ✓ Confidence in negotiations: Argue with facts instead of assumptions. ✓ Budget optimization: Identify potential savings without compromising quality. ✓ Fair prices: For both companies and freelancers.

The pitfall of rate cards: Why fixed price lists fail

Many companies try to bring order to the chaos with fixed price lists. An SAP developer: maximum $1,000. A project manager: maximum $1,000. Sounds logical, but it doesn't work. The problem: the market moves faster than any rate card. When demand for cloud experts explodes, your $900 is suddenly 30% below market value. The result: the best candidates go to the competition, and you only get second choice. The alternative: flexible price corridors based on current market data. Tools that show in real time whether a price is in the green, yellow, or red zone. [Screenshot placeholder 3: An overview of several freelancer profiles with price benchmarking should be shown here – different color codes or indicators showing whether prices are below, at, or above average]

The true cost of lack of transparency

Lack of price transparency not only costs money, but also:

• Trust: Departments doubt the competence of the purchasing department
• Time: Endless discussions about reasonable prices
• Quality: Good freelancers switch to more transparent providers
• Competitiveness: While you are discussing, the competition has already struck

Practical steps toward price transparency

Immediate measures:

1. Make margin transparency a condition—starting with the next framework agreement
2. Build your own database—document every order
3. Use benchmarking tools—such as FRATCH GPT for objective market prices in real time

Medium-term strategy:

1. Prefer partnerships with transparent intermediaries
2. Enrich internal price database with external market data
3. Establish regular market analyses

Long-term vision:

A completely transparent ecosystem in which all participants – freelancers, intermediaries, and companies – act fairly and on an equal footing.

Conclusion: Transparency as a competitive advantage

Companies that invest in price transparency today not only save money. They also secure access to the best talent, shorten procurement times, and build trust among all stakeholders.

The technology for this already exists. AI-based tools can deliver in seconds what used to take days of research. The question is no longer whether you can create price transparency, but whether you can afford not to.