The “going rate” refers to the standard price for a service or item, including salaries. It fluctuates and can be determined by researching a large number of companies or individuals. It is often used informally and can be helpful in determining value for money.
The “going rate” is an idiomatic English term referring to the standard price of an item or service. The current rate can also be applied to salaries. The going rate is the rate someone would expect to pay for a service such as babysitting.
Using the term as a question, such as “What’s the going rate?” – the person asking indicates that they are unsure of the current standard market value for the item or service in question. This implies that the item or service, such as babysitting, fluctuates in price. It can also suggest that the prospect hasn’t purchased the service or item for a long time and is therefore not sure how much the cost has increased.
If a customer knows the standard rate for a service, they will be able to better judge whether what they are buying offers value for money. Take the example of babysitting again. If the going rate for a basitter is $10 US Dollars (USD) an hour, a customer might feel he’s getting a good deal if she’s only paying $8 USD an hour.
Similarly, a basitter may charge double the going rate for her services. Parents are likely to expect better service in return. Expectations can go up or down, depending on how much the cost of the service varies from the going rate.
The standard price for a service or item is not set by any person or company. To determine the going rate a customer must research a large number of companies or individuals offering the same service. Companies are unlikely to use the term, which is colloquial and informal. They are more likely to use a phrase such as market value or recommended retail price (RRP).
The term is more likely to be used informally among people. Using the babysitter example, one would expect a couple in need of a basitter to call their friends, relatives, and neighbors. To find out what the appropriate rate is, they could ask another couple with children what they have to pay.
As for salaries, the expression is most likely to arise in an informal discussion. For example, two old friends meet while playing golf. One says he’s an architect, at which point the other might ask, “What’s the going rate for an architect these days?” The question is an indirect way of asking the other for the salary.
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