To set a consulting fee you need to consider many factors: the type of business you're in (whether it's PR, marketing, IT or human resources for example), your location, the complexity of the project and your experience level. Check out the following tips on how to charge consulting fees.
- Skill level:
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Charge an hourly or daily rate for your consulting fees. To determine this, figure out the number of billable hours solely on project consulting in one year. Don't include vacation, sick time or holidays in this total or marketing and administrative functions. To earn a profit, determine how much will cover expenses. In order to earn $50 an hour, a consultant may charge $125 depending on overhead.
Consider the competition in the local area. Find out what they charge and set your rates in a similar vein. Depending on your reputation and expertise, your consulting fees may be a little more or a little less.
Fix a flat rate. This works to the consultant's advantage if a $500 job takes only 30 minutes. If that same job takes 30 hours, the consultant only makes a little over $16 an hour. However, by using a flat rate, a consultant avoids billing arguments with their customers when it's time to pay, so set a fixed rate fee when working with small companies or new clients.
Base your fees on value related services. If your marketing advice helps a company sell a million widgets when they sold a dozen the previous year, that justifies a high fee. To find out more about this type of charge, check out yenomarketinginc.com.
Cut down a large project into several assignments. This helps the consultant track progress and avoid billing problems.
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