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how much to charge as a consultant eval(ez_write_tag([[300,250],\'businessknowhow_com-box-3\',\'ezslot_0\',122,\'0\']));

by:Powerful Toys     2019-12-07
Last update: On August 8, 2014, what is your charging standard for consulting services?
How do you make sure that all of your expenses are left sufficient to pay your own decent salary?
Use these tips to solve the problem.
If you own a retail store, a restaurant, or sell a product online, it will be relatively simple to calculate the price: take the price you pay for the product and add all the indirect costs, and add profit margins.
If your gross margin is 50% and the total cost of your product is $20, then the retail price is $30. Simple, right?
But it\'s not the same if you\'re selling services.
You don\'t buy products, you don\'t sell them.
You are not paying a fixed amount for something, so it is not easy to measure your cost.
Your \"cost\" is the value of your time and knowledge and/or the time and knowledge of your employees.
All this is good, but the emphasis on time and knowledge is very subjective.
Despite the subjective nature of service pricing, we still have to look at our numbers.
No matter how small your business is, you have indirect costs.
Business owners in the service industry may not be so vigilant in controlling costs because there is only a small amount of money.
But when you add up all the costs, the cost of doing business can be very large.
For example, paying $20 a month to use the email marketing service is a relatively insignificant amount of money, but what about all of these Chamber of Commerce and other small business association members?
There will also be ongoing charges for your phone service, Internet access and office supplies.
You may have to take the client out for dinner, upgrade your software, or repair or replace a computer.
What about the money you pay employees or virtual assistants to answer the phone, issue invoices and do other chores?
These and other costs to operate and manage the business need to be considered, although they cannot be assigned to any one job.
The bottom line is that you and the product-oriented business owners are not as different as you think.
You also need to track and control costs.
First, set goals to show how much you want to do each year, and how many official hours do you want to work to achieve that?
It\'s more of a \"in the Perfect World\" goal, but it will at least get you started.
If you want to make $75,000 this year and want to work for 40 hours and are not planning to take a vacation or vacation, you will only need to charge about $36 per hour in order to achieve this goal.
Does it look a little low?
If you have specialized knowledge, work 40 hours a week for $90 an hour and almost $184,000 a year. Much better.
Second, observe industry and regional trends, and professional organizations keep detailed industry trend data.
You can find information on many blogs, but if you are in a professional industry, you should belong to a professional organization in your industry.
Ask them these numbers.
If the market and your location (
If you work locally)
$90 an hour, you know, make a 6-
The digital salary is reasonable.
Third, thinking
Time is money if you charge by hour. Non-
Billable hours include anything you do 40 hours a week that can\'t be billed to your customers, resulting in zero revenue.
Some examples: paperwork, travel, a network of marketing businesses, talking to suppliers or partners, etc. These non-
Billable activities can easily take up 50% of your time.
If so, your $184,000 salary has just been cut to $92,000 before you consider any going outof-
Pocket money for running your business.
Who is your client?
Let\'s take a look at two types of services.
For entrepreneurs.
The first is the person who owns the house cleaning business.
He works with busy professionals who want someone else to clean their home instead of putting in precious time to clean it themselves.
Most of his clients are slightly higher than the average American income.
Second, enterprise IT consultants who provide network security consulting for enterprises.
Her client is a large enterprise that relies on her to ensure data security.
Obviously, the first entrepreneur can\'t charge that much because his clients are more money-oriented.
If he charges $150 an hour, there will be very few of his clients.
Customers of IT consultants understand that losing data costs much more than protecting IT.
She can charge more.
Consider your customer base.
See also: six strategies for getting paid when you gain experience and fame, your prices rise, but understand that at the beginning you may not get the rewards you deserve.
Most consultants start working at a cost below average and slowly raise prices.
Don\'t be too greedy and too fast, and don\'t weaken yourself.
What are your main business objectives?
If you charge by hour, your consulting service may be your main source of income, but if you sell other products with your consulting business, in order to sell in terms of products, you may charge a lower fee for the service.
Service-oriented people know that product diversity can control prices better.
If you speak at an event, write a book, sell products related to your service, you know what experienced service professionals already know --
Charging by hour is a hard way to make money, and their hourly price must be higher.
Finally, it comes down to understanding the market, understanding your competitors and aligning with the industry average.
You then organize your business around these rates.
Each service sector is different, and some are more price-conscious than others.
Get to know your industry and keep up with current trends and you will be able to achieve your goals.
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DBA business knowledge-How®.
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