Pricing consulting services depend on one’s value of work. Several factors influence the pricing of consulting services, including competitive landscape, one’s experience, and work scope.


What type of pricing should one Use?


Consultants choose a fee structure for their services to remain transparent in what they offer. The type of fee structure most consultants use include :


  • Hourly rate: this is based on time arrangement and what one charge their client depending on the time they have worked.
  • Combination fee: the client and consultant determine the rate depending on the project.

While consultants may prefer using a similar fee structure for all clients, it is not applicable. The aim of consulting service pricing is to ensure one compensates their work fairly and ensures their clients can pay for the work comfortably. This means it is okay to adjust the pricing of consulting services depending on the project and the client. Ensure the client is aware of pricing before beginning the consulting services.


Tips to Determine Consultancy Pricing


There are several things to consider when determining consulting pricing. It can be hard to balance some factors, but with the following tips, one can develop an optimal pricing structure for their clients and their work.


1. Use Industry Standards and their Experience to Determine Hourly Rates


If one is starting a consulting company, one of the best ways to decide on their consulting pricing is dividing their previous earnings by fifty-two weeks and then dividing the acquired number by forty working hours per week. The result will give one the rates they were working for hourly.


One can also research the consulting fees of their competitors. This ensures one does not surpass the markup percentage of thirty percent.


2. Determining the Time One will Spend on a Project


One needs to do an estimation of the time they will use on a particular project. One should estimate the time they will spend on each phase of the project, including client research, analysis, interview, and creating, drafting, and editing some proposals.


3. Determine Additional Consulting Costs


Apart from what one charges for their time, they will also want to consider additional costs that may come up while offering consulting services. If one spends their cash on transport or materials to handle a client’s project, they can include the changes in the consulting pricing.