When you're working in the consulting or coaching industry, it can be difficult to know how much to charge for your services. To maximize the profitability of your projects, create a clear outline of the various tasks included in a project and estimate the time it will take you to complete each of them. First, you charge an initial setup fee that covers the cost of starting a consulting relationship. What influences consulting fees? Your general location will also influence pricing.
Consultants who live in coastal or urban cities typically charge higher consulting fees. Once you've determined how much you'll charge for your services, you should think about how you'll accept payments. How do you determine your fees? Take the number of hours you plan to work and divide it by 52 (number of work weeks), then again by 40 (number of hours per week). Dial it between 25% and 50%.
If you need to develop your skills and confidence as a new consultant, consider offering a Beta Program to people you already know, making it perfectly clear that you are in the process of learning and that you will charge more when you have some clients under your belt. This consulting fee calculator from Consultant Journal helps you calculate how much you earn per hour based on a 52-week year. Consulting Success's consulting fee calculator provides a great starting point to help you calculate how much to charge to earn the amount of money you want each day, month and year. Advance payments also make more sense for certain types of work than for others, such as a graphic designer who is committed to delivering a certain amount of graphics each month or an IT consultant who provides website monitoring services.
Not only does this make it easier for your clients to manage the cost of consulting, but it also allows you to obtain a continuous stream of income so that you don't have to wonder every month if you will hire the work needed to cover your bills. The fee charged for consulting or training can vary widely, making it difficult to determine where your position is.
