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How do you charge for projects?

(@Anonymous)
New Member

How do you charge for your consulting projects by hour, by project, retainer?

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Topic starter Posted : 12/01/2009 11:36 am
(@Anonymous)
New Member

Re: How do you charge for projects?

We have a couple of clients we have on retainer - it is worth it! Most of the clients we charge a percent of the expenses we save or recover which usually is between 30-50% of the first years savings. For regular consulting projects we charge $100 per hour per consultant and $250 per hour for our senior consultants.

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Posted : 14/01/2009 2:49 pm
(@Anonymous)
New Member

Re: How do you charge for projects?

We also charge on a per project basis and estimate the amount of hours it will take to complete the job

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Posted : 15/01/2009 11:26 am
(@Anonymous)
New Member

Re: How do you charge for projects?

find out what other consultants in your community are charging for their services. Sometimes a simple telephone call to another consultant's office asking what their fees are will give you the answers you need. Or you may have to have a friend call and ask for their brochure, or any additional information they can collect regarding fees and pricing. If you live in a small town and there are no other consultants in your field, then rejoice and be glad, but set your fees at a reasonable level!

When setting your rates, you have several options, including hourly rates, project fees and working on a retainer basis. Let's examine each one closely.
Hourly Fees

You need to tread carefully when setting hourly fees, because two things could happen: A) Your hourly rate is so high that no one could ever afford you (therefore no client will ever knock on your door). B) Your hourly rate is so low that no one will take you seriously.

Keep one important rule in mind when establishing your fee, no matter which structure you decide on: The more money people pay for a product or service, the more they expect to get for their money. In other words, if a client agrees to your hourly rate of $400, then you had better give $400 worth of service to that client every hour you work for them.

Some clients prefer to be billed on an hourly basis, while others hate the idea of paying someone what they perceive to be too much per hour. Those clients usually prefer to pay per project.
Project Rates

When working on a project rate basis, a consultant normally gets a fixed amount of money for a predetermined period of time. A few of my fund-raising clients actually preferred to be charged this way, so it wasn't unusual for me to charge $36,000 for a one-year project in which I consulted them on how they could raise money. Because of the amount of money involved, most agencies preferred to be billed on a monthly basis. This worked out fine until I realized that many agencies were late paying their monthly bills.

Because of this, I decided that all future clients who wished to be billed on a monthly basis would pay the first-month fee and the last-month fee at the signing of the contract, which meant that if the agreed-upon amount of the project was $36,000, to be paid on a monthly basis, I received a check in the amount of $6,000 before I began any work ($3,000 for the first month's fee and $3,000 for the last month's fee).
Retainer Basis

Working on a retainer basis gives you a set monthly fee in which you agree to be available for work for an agreed-upon number of hours for your client. While in the ideal world you would have a dozen or so clients who hire you and pay you a hefty sum each month (and never actually call you except for a few hours here and there), don't get your hopes up. Most companies that hire a consultant on a retainer basis have a clause in their contract that prohibits you from working for their competitors.

Working and getting paid in this method certainly has its advantages. You are guaranteed income each month, and when you are starting out in your consulting business, cash flow can be a problem. Some consultants actually offer a percentage reduction in their fees if a client will agree to pay a monthly retainer fee

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Posted : 28/06/2009 9:19 am
(@Anonymous)
New Member

Re: How do you charge for projects?

according to the spending money on the project and labour charges then adding of profit value.the total value is project charges.

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Posted : 23/09/2009 5:16 pm
(@Anonymous)
New Member

Re: How do you charge for projects?

. Overall, there are three areas to examine:

1. Your overhead
2. Your experience
3. Your geographic location
cost you to do business
1. Monthly rent
2. Office equipment
3. Office supplies
4. Postage costs
5. Internet access
6. Long distance phone calls
7. Office furniture
8. Publication subscriptions
9. Association dues
Educate Your Clients
* Preparation and research time
* Brainstorming time
* Time to execute revisions
* Time spent on the phone or in meetings
* Travel time

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Posted : 23/12/2009 6:08 pm
(@Anonymous)
New Member

Re: How do you charge for projects?

I think there is a difference of opinion in that manner.
I think that everyone has to pay according to their work.

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Posted : 24/12/2009 4:27 pm
(@Anonymous)
New Member

Re: How do you charge for projects?

As per client requirement we decide the charge of project. Which type of quality require that type charges given. and we always provide a good quality. if client give very law rate of his project then we can't take this project. because in market demand of quality work.

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Posted : 12/01/2010 9:33 am
(@Anonymous)
New Member

Re: How do you charge for projects?

Thats right charge depend on project type and its quality, i am also agreed on the point that project should be close ended means should have some end date, i prefer to discuss whole thing with client bbefore going in action or implementation

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Posted : 13/01/2010 5:36 pm
(@Anonymous)
New Member

Re: How do you charge for projects?

We have a couple of clients we have on retainer - it is worth it! Most of the clients we charge a percent of the expenses we save or recover which usually is between 30-50% of the first years savings. For regular consulting projects we charge $100 per hour per consultant and $250 per hour for our senior consultants.
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Posted : 11/03/2011 6:16 am
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