Benchmark with similar services.
Consulting is a professional service, so looking at what CPAs or attorneys are charging is a place to start.
They are contract services with billable hours and day rates so, while not exactly comparable, if you can find information on what other professionals are charging it can serve as a benchmark for what your target market is paying for external services.
Determine your rate.
You should figure out your hourly rate so you can be clear on how you view your own value, and provide clear estimates on proposals, determine your day rate, and, ultimately, a rate for a monthly retainer.
Your hourly rate should include the following variables:
- What you would earn at a full-time job right now
- Your overhead expenses
- Profit margin
This does not mean you should charge an hourly rate. In fact, this should be the most expensive way to work with you. But you should know what your individual hourly rate is so you can price your services appropriately.
Give clients choices.
Once you have your baseline rate, you are armed with information about how high and low you are willing to go when pricing your services and offering any discounts.
One thing that is helpful is to offer clients choices when presenting a proposal. Let them know what could be accomplished at a few different price points so you are in integrity with your value and your offer and they have the option of choosing what they are most comfortable with.
This allows you to establish the relationship from a place of trust.
There are any number of ways to price your consulting services. However you choose to approach your pricing, the most important thing to know is your baseline rate so you are always clear on what you need. This is a key element of treating your consulting practice as a business.
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