5 Steps to Accurately Price Your Consulting Rates

Determining consulting services rates has been one of the challenges that many professionals face. This is due to inexperience as well as lack of proper guidance in accurately determining consultation rates.

Whether offering an hourly rate or a flat rate services, it is your responsibility to work ascertain your services before making the final step towards your services.

In addition, first-time customers may feel nervous about paying a huge project fee, preferring, as an alternative, to pay by hour. Determining an hourly rate for your consultancy services may provide a fair as well as consistent rate to most your clients. The question is how do you set your consulting charges?

Before deciding on how much you should charge a client, you need the following things: a paper, pen, and a calculator. After getting the following above prerequisite materials, follow the below instructions.

Step one: Based on Forbes research on how to set your hourly consulting services, you start by setting your hourly rate. Sum up your annual salary before dividing by 2,080, the annual number of hours you worked. Add all the cost expenses that usually range from 35 to 40% of the annual salary. Add the base salary and the cost benefits before dividing by 2.080. Next is to double the figure and this gives you your hourly rate. The additional factor can sometimes cause a deviation in the final rate. These factors depend on many circumstances that affect the business both external and internal.

Step two: The second factor to consider when settling on consulting rates is the years of experience. For instance, a former IT director who carries out consulting services may charge a higher fixed or hourly rate than a new IT consultant performing similar task. Higher research pays stages for positions in your career.

Step three: you must also factor in the level and areas of expertise. Set your rates in a direct proportion to how much specific as well as valuable your proficiency is to customers. For instance, a consultant with a recognizable name, worked with a marquee client or written a book has a better position to demand a higher rate compared to its competitor who has never done so. Your level of expertise distinguishes your services from the competitors and makes have a more competitive advantage to prospective clients.

Step four: Develop a nice "cushion" for your customers. Ensure you give your clients better attitude enabling them to pay higher on the following services. These kinds of arrangement may also benefit the first-time customers who may be anxious about paying higher amount of money for your work. For example, Digital marketing consultants should take into consideration any additional services in the final charge.

Step five: Give additional consulting services to your clients. You must calculate the extra services offered when determining your final price for consulting services. Finally ensures all services offered by your subordinate staff are calculated in the final fee charged.
The five steps above should will help you as a consultant make wiser decision on how much to charge for your consultancy services.