How to set consulting fees

Most new consultants tend to set their consultancy fees too low, this is usually a combination of eagerness to win business and a failure to understand their cost structure. There are a number of factors involved in setting fees for a service. Naturally, what the market will bear is the ultimate determining factor; but you still need to understand your cost structure in a realistic way. So often people set consulting fees in an arbitrary manner without understanding the components that make up their consulting fees.

There is a formula for setting Consulting fees.

And it’s not that difficult or time consuming, plus the process will give you an insight into your business. Our “Become a Successful Consultant” eBook has a whole chapter devoted to the subject. You’ll need to first understand your productivity and this is the area that most mistakes are made in. Next you’ll need to add in the components of your expenditure adjusted for your productivity. our eBook will walk you through how to set fees for,

  • Specislised skills
  • Daily Rates
  • Weekly rates
  • Minimum fees
  • Retainer fees
  • Speculative work
  • Tenders and Lump sum Quotes

Our eBook “Become a Successful Consultant” also explains how to account for and bill out-of-pocket expenses. Plus advice on how to charge for Travelling Time in addition to your consulting fees.