Consulting Fees: How Much Are You Worth? - InformationWeek

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Consulting Fees: How Much Are You Worth?
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Kristin Burnham
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Kristin Burnham,
User Rank: Author
12/10/2013 | 11:11:58 AM
Onsite vs. Offsite
I thought #5 was interesting. Cutting your fee by more than a third is pretty drastic. Have other IT consultants found similar savings by working remotely?
anon4747734229
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anon4747734229,
User Rank: Apprentice
12/10/2013 | 11:40:20 AM
Rate Comparison
I didn't know you could have repeat clients. Is this a norm? Thanks!

Separately, stating my rate has always been pretty challenging for me. I know there are some seasoned consultants who have this to a science. I'm guess this also depends on the type of work you are doing. In general, does anyone know which rate is higher, instructional designer, trainer or technical writer? Thanks!
Deron Lespoir
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Deron Lespoir,
User Rank: Apprentice
12/10/2013 | 11:49:25 AM
Re: Rate Comparison
In IT, a trainer typically commands a higher rate since they tend to wear many hats. Instructional & Curriculum Designer, Technical Writer, Systems tester, Administrator, Project Manager and Trainer, can all be part of a trainers job.
Whoopty
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Whoopty,
User Rank: Ninja
12/10/2013 | 12:25:44 PM
Re: Onsite vs. Offsite
I've always worked from home so have never considered cutting my rate, but if someone wanted me to commute I'd certaiinly be putting my fees up to compensate for the fuel and time involved - potentially some mental anguish costs if I had to deal with traffic too.
pelmech
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pelmech,
User Rank: Apprentice
12/10/2013 | 12:56:27 PM
reimbursement
I try to work from home when I can but travel is a large part of my consulting and I think the $25 per hour for reimbursement for a 40 hour week is low.

For travel with a rental car and airfare, $1600-$2000 per week is an average for my current assignment and that is staying at inexpensive hotels and only a per diem rate for the 4 days on site, not the travel day included.

 
pelmech
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pelmech,
User Rank: Apprentice
12/10/2013 | 12:56:34 PM
reimbursement
I try to work from home when I can but travel is a large part of my consulting and I think the $25 per hour for reimbursement for a 40 hour week is low.

For travel with a rental car and airfare, $1600-$2000 per week is an average for my current assignment and that is staying at inexpensive hotels and only a per diem rate for the 4 days on site, not the travel day included.

 
Somedude8
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Somedude8,
User Rank: Ninja
12/10/2013 | 1:08:44 PM
Supply and Demand too
If a super specialized skill is needed, or some very unusual set of skills, and you happen to have it, you can get a much higher rate than for say, a PHP developer.

I mostly work in a fairly niche language, and see supply and demand cause big swings in market availability and rates, due to the smaller talent pool and smaller demand. The rate I can get today may be half what I can get in 3 months, or double. Kind of like Bitcoins! Well, not that crazy.
Kristin Burnham
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Kristin Burnham,
User Rank: Author
12/10/2013 | 1:48:25 PM
Re: Supply and Demand too
That's a good tip, too. Consider how in-demand the skill set is before you set your rate. And I love the Bitcoin reference.
Deron Lespoir
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Deron Lespoir,
User Rank: Apprentice
12/10/2013 | 5:35:25 PM
Re: reimbursement
Estimating travel expenses will certainly vary from project to project. The intention behind setting a dollar value is really a tool to help you see your rate in parts and not as a whole. Similar to Lawyers and Mechanics, I consider my base rate (labor) + the complexity of the project (see number 1, 2 and 6 in the article) + Location or Travel related expenses (see numbers 3, 4 and 5 in the article) = my rate.
Sacalpha1
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Sacalpha1,
User Rank: Moderator
12/12/2013 | 1:34:01 AM
Re: reimbursement
I have to agree with the other post on here about travel expenses.  $25 per hour for travel expenses is very low unless you working 60+ hour weeks is part of the arrangement.  I have estimated expenses as an hourly component in a number of locations around the northeast, midwest, and south.  The lowest rate I have ever calculated was $35 per hour and $40 to $50 per hour is the most common range.  Please don't publish rates that have not been properly researched.  If you are going to publish something, then it's much better to use a range.  Some idiot will qoute your article or ones like yours as the reason they won't pay reasonable expense rates.
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