Re: Consulting Rates?

Hello SolarCat,

To start, I suggest you get yourself a number of the ".... For Dummies"
books that cover both sales and marketing. They also have one for
consulting. These books are concise and solidly written. Another series is
the Adams Streetwise series. I like the on on Independent Consulting.

That being said, I suggest you plan on securing at least one or two more
clients. This will help you avoid grief when the IRS asks you about having
only one client.

As for what to charge? I suggest you break down the project into tasks and
charge different rates for the different tasks. I charge $130 an hour for
strategic planning, $83 an hour for basic consulting and $47 an hour for
paper work (no brainer tasks). Structure it right and you can readily farm
out the work you don't want to do (and retain 30% for your own marketing
efforts). A project will have a blended rate and you can offer a discount
for a monthly retainer against which to bill.

Keep in mind that once you've laid out a project, determine what are the
natural break points and do not fall into the pick and choose trap where a
client cuts costs by picking and choosing what they think/feel is useful. I
don't have to justify how I perform my work. If it doesn't make sense to
break up a chunk of time because the tasks interact, you charge for all or
nothing. Just make sure to clearly define who is responsible for what. Take
the time to define the boundaries before you wind up being a potential
scapegoat.

 I specify expected results and charge for chunks of work as I go along.
Also have handy your change of work notice. Have your client initial it when
you both agree on modifying the project. This way, you will allow your
client to "Have It Their Way!" I am very happy to accommodate these changes
as long as they keep paying me for my time. I am also very happy to work
with a difficult client. I also charge for the extra time needed to satisfy
them.

Also, plan on working with a network of professionals and mention this to
your client. You will finalize the work but may use your own independent
contractors. That way, when the client wants to know why you need a
retainer, mention the fact that you have other professionals to pay. It also
allows you to expand your expertise and offer complete solutions. Promise
less and deliver more... Your client will always compliment you on this.

A few ideas.


-- 
J.P. Solyom, B.Sc.E.E., M.B.A.
KS Business Development
Sales and Marketing Solutions for the New Economy
powerSales & mailSHOT - When you need a steady stream of qualified prospects
(253) 272-0996  [EMAIL PROTECTED]



On 9/4/03 11:59 PM, in article [EMAIL PROTECTED], "SolarCat"
<[EMAIL PROTECTED]> wrote:

> 
> After applying and interviewing for a Marketing Director position at a
> small high-tech company, I was told they've decided not to fund a
> full-time position now but may wish me to work with them as a
> consultant on specific projects. I'm open to such an arrangement, but
> having never consulted in this field I'd like some feedback on what
> rates might be considered standard and/or reasonable under the
> circumstances.
> 
> For the sake of argument, let's say that the full-time position would
> have paid $80,000. That would be $40/hour based on a standard working
> year. Add the benefits that a self employed person must provide for
> him/herself plus the other costs of part-time self employment, and it
> seems to me that twice that, $80/hour, could easily be justified. On
> the other hand, I know that the company views this in part as a kind
> of internship in their industry, with which I am not familiar. And
> they're trying to save money with the consulting arrangement. I
> suppose another potential complication might be the idea of
> per-project fees rather than hourly.
> 
> Add this all up and I'm uncertain what to ask for or agree to. Any
> thoughts would be appreciated. Thanks.