Recently, several readers have contacted me to say that they aren’t sure how to convince clients of their value. They note they’re new to the field and that they don’t know where to go from there. So how do you figure out a consulting fee when you’re an upstart consultant or firm?
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.
What is a typical consulting fee? Good question. Unfortunately, the answer is that there are no typical consulting fees! Consulting is made up of so many variables and factors that there really is no easy answer. As you can imagine, typical consulting fees for skin care consultants are vastly different from typical consulting fees for jury consultants.
Typical consulting fees are all about value. How much value do your services offer your client? By doing a little research and bearing value in mind, you will be able to set a rate that is appropriate to your area of expertise and is competitive within the industry.
Consulting rate – Are you wondering how to set your rates as a new consultant? It’s extremely important to set an appropriate rate for your consulting services. Why? Because not only does your rate reflect your qualifications and expertise, but it’s also your bread and butter! Use a strategy when setting your consulting rate so that you are confident in your pricing structure. Rates should also take into consideration competitors’ rates, physical location (think urban cities versus small towns) and the exclusivity of your services.
I’ve done a lot of work on consulting fees, including writing Consulting Fees: A Guide for Independent Consultants and helping numerous new consultants set their consulting fees. When discussing consulting fees with clients and new consultants, I’ve noticed common misconceptions about consulting fees.
I’ve compiled these common misconceptions into this article to help set the record straight when it comes to consulting fees.
“Could you spare 20 minutes to talk to me on the phone?”
“I’d be happy to work with you to develop a proposal that will meet your needs.”
“But it’s just 20 minutes. In 20 minutes, you could give me such important strategy that would otherwise take me months to develop. You could really help me….”
IT contracting rates vary from firm to firm and region to region. Nowadays, you may be competing with offshore contractors. But you can still carve out a niche for yourself.
Setting your consulting fees can be a huge stumbling block. If all this is new to you, you may feel your head spin when you start looking at coming up with a fee. If you’re also dealing with a career change, a career break, cultural or gender factors, things get more complicated. Fortunately, you can use clear models and recommendations to help navigate this new path.
Rates for independent consultants can be one of the most important elements to understand as a consultant. How do you set rates for independent consultants? What are other consultants in your field charging? How can you justify a high rate? Should you negotiate your rate? How much is too much–or too little? What strategy should …