The client must walk away feeling that they actually got enough value for what you were charging, or else your reputation will suffer. This can be a very profitable billing method, but is only appropriate for consultants with a wealth of experience. As you may have guessed, it’s based on the value you provide to the client and the ROI they receive. Simply put, this bill rate is very specific to your client and your contribution.
Try and find out as much as you can about the scope of the project to understand the value you can provide. The best way to determine the value is to know the client. The same holds true for independent consultants who have a unique, valuable and scarce skill. If you own the only gas station on a 300-mile stretch of highway, you’ll be able to price pretty high. Your best source of information is competitive research: who are your competitors, what do they offer, and how much do they charge? 3. To accurately calculate a market-based bill rate, you must have current market data. You can also define what you do in terms of what you make or provide-website design, training sessions, etc. In order to assign a market rate to your work, you must be performing a task that is definable-what do you do? Defining what you do can take into account your experience, industry, title, and region. If your billing rate is market-based, you can assure that the amount will meet your client’s expectations. Market-based ratesĪs you might remember from your basic economics class, the market rate is based on supply and demand. You also aren’t factoring in what the competition is doing or charging or how urgent the client may need your services and how scarce of a resource you are to find. First, it does not take into account the value you are providing the client, so this method could have you undercharging people. Although this is an ideal method for many consultants, it does have its drawbacks. It factors in the costs you need to cover to make your target income. It helps set your baseline or ‘equivalent W-2’ number. This is the most common starting point for calculating a billing rate. There are three main techniques used to decide how much to charge for consulting services: 1.
#High billing rate it jobs professional#
Let’s start with understanding what a bill rate is-the amount a company or professional charges per hour of work. The most important step is balancing the scope of the project with the needs, wants, and urgency of your potential client. How do you calculate a bill rate that doesn’t undersell your services or lose you the contract to another consultant? Your rate can be as high as what a client is willing to pay-but finding out how much that should be is the tough part. As a self-employed professional deciding how much to charge for your services can be challenging.
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