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Ann Arbor > Ann Arbor Wiki Page > Wiki Pages > Consulting Rate Question
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Consulting Rate Question
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The Question:
Hello All,
I’m looking into doing some free lance training development. I’ve found a company who is looking to transform PDF/written notes/word documents into PowerPoint presentations. They have sent over the original documents and would like me to provide them with a quote for developing the training materials. Once, I’ve developed the presentations, I will be tasked with creating some assessments. I think that for the assessments, my time is worth much more since it will involve some higher level thinking, creativity, statistics etc. The PowerPoint’s themselves will require some creativity, placement etc, but the materials are all there. Do any of you have any experience with pricing something like this out? Or do you have any suggestions on what the going rate is for something like this? Or if it is best to average the two task’s prices to be a middle ground hourly rate? Or to charge two different rates depending on what the task is? Thanks for your help.
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Reply #1
Based on my husband’s consulting experience I would say hourly may not be the best way to go…In his experience his clients usually questioned why he was paying himself $xx/hour so now he quotes and works on a project bases and has had no issues at all!
I would absolutely charge a different rate for the PP than the assessments…he usually estimates how long it will take him and quotes the project fee based on that as well as any disposable materials he will need….if he needed to purchase non-disposable items as well he would pro-rate that fee (of course they would pay for it but he would discount his markup based on that fact he would be able to use it again).
Hope this helps…Good luck!
Nicole
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Reply #2
I agree with Nicole—project rates over hourly rates. It requires you to think about time you’d spend and all that’s required (materials, creativity, editing, etc), since there’s no add-on once you get going. But it helps you keep the project intact—no scope creep—more easily. You can detail the contract expectations (e.g. review current documents and create XX training programs/develop facilitator guide w/PPT, up to three reviews/edits, etc.….). Your approach is that you deliver results; their fee is not dependent on how many hours it takes.
As Nicole notes about her hubby, when you work with hourly rates, there can be questions about why this rate/how about this rate instead. You become a vendor—one based purely on price—rather than a partner who delivers value.
As for pricing for your services: You’re right—there’s some consideration for the “going rate” in order to be competitive—but there’s also a danger in being “the same” as everyone else. I don’t know fees for these particular tasks/in this market, but I would think about what makes you different from other consultants who do this kind of work and write you proposal with those features highlighted in the outcomes portion.
You might also consider a multi-choice proposal—Option A is the bare bones, Option B is pretty robust, and Option C is everything and the kitchen sink. Not sure how this project would play out into options, but my experience with offering options has been very good. Just something to consider…
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Last modified at 6/1/2009 4:34 PM by KP2me
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