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.