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Tuesday, March 27, 2007

Hourly Rates and Your Competitors: The Second Step

Examining the hourly rates of both your high- and low-range competitors can help you know what you should be charging. First, you look at the hourly rates of the low-end IT consultants in your area so you can not emulate them; setting hourly rates too low will make you a commodity and will attract clients that are not in the favorable sweet spot.

Next, look at the hourly rates of high-level network consultants. This is the group with which you should be competing.

Hourly Rates of High Level, Service Contract-Based IT Consultants

High-end computer consultants will probably not publish their hourly rates or stick to them regularly. Instead, they will often adjust hourly rates based on the price sensitivity of clients. Thus, determining their rates can be difficult.

Determining the Hourly Rates of High Level IT Consultants:

You can figure out the hourly rates of high-level consultants in the following ways:

1. Ask business partners that have worked with other IT consultants previously.

2. As accountants, attorneys and other professionals what their opinion is about typical hourly rates for LAN support.

3. Ask deeply-niched contacts that are non-competing what they charge.

4. Ask the Chamber of Commerce and economic development offices.

5. As at user group meetings and networking events.

6. Ask for prior IT invoices from new accounts.

7. Consult CRN and VAR Business, both of which sometimes have articles that mention hourly rates and other related topics.

You need to find out hourly rates of competitors to position yourself properly. Set your hourly rates in the high range to get the best clients.

Added By: Joshua Feinberg