How to price your consulting services - John B. Wilson
How to Price Your
Presented by John B. Wilson
J O H N B W I L S O N . N E T
Consulting can be a very lucrative field. However, it’s also
a fairly lonely one. Consultants work for hire, and try to
keep overhead low. Though there are consulting firms, most
consultants work solo. Sometimes it can be difficult for
consultants to land on a price point for their services.
LOOK AT HOW SIMILAR
That’s never a bad idea. It’s always great to know what price
point the market can sustain. There are other strategies,
though, that can help consultants or aspiring consultants to
price out their services.
First, it’s important to figure out what costs are.
Next, it’s a good idea to look around and see what
competitors are charging. To finally set a value-
based price, you need to figure out what
intangibles set your product apart from the ones
sold by competitors.
That’s right, start with the overhead. Remember, in the formula for
revenue, there has to be room for both profit and expenses. Covering
both is the only way consultants are able to make it in the long run.
START WITH THE
How much is office rent monthly? Administrative
assistance? Utilities like phone, internet, water and heat?
All of this must be taken into account. Figure out the total
business overhead expenses for the month.
Next, think about goals. What’s the goal for annual take-
home income? $100,000? $200,000? Whatever it is, it’s
important to price services accordingly. Divide the total
goal number by the number of working days per year. Now
add daily overhead. This is the target daily revenue.
Remember, consultants are essentially freelancers. They
may not be called on to work every day. Frankly, many
might not want to. Those consultants transitioning from
corporate life to consulting, may want more free time on
their hands. So don’t just take the strict number of Mondays
to Fridays into account. Figure in holidays, days off for
personal reasons. Estimate work for 60-65% of actual
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