Consulting fees and how to set them can be a challenge to new consultants. You might be wondering how much to charge or be unsure of your own value. Many new consultants start by undercharging. However, setting your consulting fees in the right range is easier than you think. There are several approaches to setting consulting fees that you can take. In this article, hourly, daily, fixed, and competitive rates will be examined.
Setting your consulting fees:
Hourly consulting fees
What would you make per hour if you were working for someone else? Take that number and double or even triple it. Using an hourly rate may be appropriate when you don’t work full days, or if you work erratic hours.
Daily consulting fees
The daily rate works well if you normally work an 8-hour day, and if you have a good sense of how many days a project will take.
Fixed consulting fees
Fixed consulting fees are a common method. For example, you might charge $3000 for wedding planning services from start to finish. With this method, you must have a good idea of your skills and the time it will take to complete the job or else you’ll risk running over-time and over-budget. One of the benefits of this method is that the client has some certainty regarding how much to budget for your services.
Competitive consulting fees
The competitive method of setting consulting fees takes into account what other consultants are charging. However, setting your rates based on your competitors’ rates is not necessarily in your best interest.
Other factors to consider
In general, when setting your consulting fees, don’t forget to factor in business expenses and costs. Electricity, telephone, office supplies, vehicle expenses all must be taken into consideration. If need be, charge extra for expenses like mileage and materials.
Don’t undercharge your services. Remember you are providing the expertise that your client needs and is willing to pay for so don’t undersell yourself. Establish fair consulting fees, follow through with exemplary service, and you should have no problem attracting and keeping your clients.
Are you having difficulty setting your consulting fees? Find out everything you need to know regarding how to set your consulting fees in my guide, Consulting Fees: A Guide for Independent Consultants.
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