Here’s an interesting article that ran a while back in TechRepublic by freelancer Ellen S. Carey on how to “Set appropriate rates when moving into consulting” (URL linked above).
Joshua Feinberg, co-founder of Computer Consulting 101, was interviewed for this article and offers the following advice.
- New computer consultants often have hourly billing rates that are much, much lower than established computer consultants. While it’s OK for these hourly rates to be a little lower, it’s very important that you know your project fee structure for clients before committing to an hourly rate schedule.
- Specialists tend to command higher hourly rates than generalists. Know where your computer consulting business falls in your local competitive market relative to other generalists or specialists.
- Survey the hourly billing rates that your computer consulting competitors charge.
- Make sure you know your complete overhead and expense structure before you establish your hourly billing rates.
Again, if you need help selecting an appropriate and profitable hourly billing rate for your computer consulting business, go see the complete TechRepublic article above that quotes Computer Consulting 101’s Joshua Feinberg.
Blogged by Computer Consulting 101