Setting consulting rates

Curious to hear from you … What resonates? What’s missing? What questions does this bring up?

The basic question is, “How do I set my rate?”

1. Start with research.

Some resources to look into:

  • Google. Try keywords of your profession + consulting + rates or “fees” or something like “how much do _____ consultants charge?”
  • Talk to consultants in your line of work about what they think you could charge. (I’m happy to share about rates for Coaching and Organizational Effectiveness / Development via email.)
  • Talk with the people who hire your type of consultants about rates.
  • Read the rest of this blog post (yay – you’re 13% done already!)

2. Know the types of pricing approaches you can use in a contract. 

Sometimes the type of pricing structure is predetermined by the client or industry. Nonetheless, here are the common types of ways to structure cost and pricing in your contract.

  • Hourly or Daily rate – Set a rate then charge for each hour / day you work
    • This is a good method when you’re not sure exactly how much time the work is going to take and you want to make sure you’re compensated for the time you work.
    • Pro: Get paid all the hours you work.
    • Con: Clients pay the price when consultants abuse this model.
      • Mitigation: Put in a “Not to Exceed” clause in the contract. This can also be called a “ceiling” on a contract.

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