The scope of work should be a major factor in deciding your rates, but it can be difficult to estimate the cost per hour or project. For instance, you may find it faster to write a 2000-word article for a company than to help create a 5-minute podcast episode. If a client offers you a large sum for a big project, you may analyze the work and discover that it takes twice as much time and effort to do what a smaller project with a smaller budget rewards you. However, remember that these types of pricing don't take into account the true value of your work.
For more information on pricing strategies, check out our business consulting blog for tips and advice. Take the example of the Declaration of Independence. If you're doing game-changing work, that also comes with a financial price tag. When someone asks, “How much do you charge for consulting?” try to steer the conversation towards the details of the project. You can say, “I'd like to have a good idea of the scope of the work before we talk about rates.” Sometimes, you'll have to make compromises.
For example, a customer's budget might not be able to cover it. Instead of completely turning down the customer (or having them turn down you), guide them towards negotiation. Charging for your consulting services by the hour is especially useful if the job involves lots of in-person meetings and consultations. The process of choosing how much to charge as a consultant can be daunting, but it can be an enriching experience that allows you to measure the true value of your work and your business.
Knowing how much to charge as a consultant depends on getting the right price, which in turn has a lot to do with understanding your worth as a consultant.
