Consulting Best Practices

5 Tips for Setting the Right Consulting Fees

One of the most challenging parts of a self-owned consulting business is to decide the charge fee. Charging big might impact the number of clients and low fee will degrade your market value.

In this article at Bplans.com, Tim Berry shares some easy tips to figure out that appropriate price of your consulting job that will help in making a good clientele and establish appropriate market value.

Determine Your Worth

The basic rule is to charge as per your worth that the market is willing to bear. For long-term survival, consultation charge plays a vital role as it enables you to stay in the business. It is essential that both you and your client feel that your charges are equitable and fair.

While setting the most suitable fee for all the job you will be doing for the client, consider the additional expenses, time and resources you will be using. Here are few tips to calculate the right consulting fee:

  1. Engagement Fee: Most consultants have set some fixed amounts for the work done that they term as ‘engagement’ instead of the ‘job’ in consulting. This engagement is calculated as per a daily rate. So, decide accordingly.
  2. Set Milestone: Set an early milestone, as and when possible, to give a clear value of the work to the client and yourself. It is one of the most powerful tools of
  3. Scope Creep: It is a subtle process that starts with small adjustments and ends up resulting in a deliverable that looks nothing like what was proposed. In consulting, the key to long-term success is repeat business. The trick here is to keep some scope of the job in hand to renegotiate the fees as the scope of work grows. The author says, “that’s beyond the scope of the job, I will be happy to do it for you at the cost of a certain additional amount.”
  4. Double Charge: When dealing with a big client who is difficult to handle, push the scope and double the charge. Consulting fee also includes the charge of extra time, effort and additional patience invested in dealing with the client. Be calculative about every bit of extra effort.
  5. Statement of Value: The consultants are advised to charge high in case of any doubtful situation as the consulting fee is their statement of value. Often clients assume that a high-priced consultant will deliver best quality work.

To read the original article, click on the following link: https://articles.bplans.com/5-tips-on-how-to-set-consulting-fees/

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