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#1 Posted : 24 July 2007 15:04:00(UTC)
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Posted By Hugo Hi All, Can anyone give advice on the going rate of a Fire Risk Assessment for a small 2 storey office. Is it size, complexity or time based for pricing..has the size of the company/consultancy inspecting relevant? nice1_66@yahoo.com Thanks.
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#2 Posted : 24 July 2007 22:25:00(UTC)
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Posted By Crim Hi Hugo, I wonder why there are no takers on this one, could it be that we don't want to divulge our costs on an open forum? Well here goes, let's see if I can open this debate? You ask about the going rate of a Fire Risk Assessment for a small 2 storey office; please bear in mind I have not seen the premises but I estimate the following: Approximately 2 hours on site compiling the information necessary to carry out the assessment, A further 2 hours back at the office carrying out the assessment, writing it up using all available guidance material, A further possible 2 hours back on site meeting the Client to explain the detail of the assessment and any recommendations required. In total 6 hours work - I would charge £165.00 using an hourly rate and including materials costs i.e. ink, paper etc. Any travel costs would be charged at .40p per mile and parking and/or tolls at cost. You can see that I use an hourly rate as it is my time that is valuable to me. Others may have set rates per type/size of risk - I am interested in other views as well. Now lets have some contributions folks.
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#3 Posted : 24 July 2007 23:17:00(UTC)
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Posted By pluto Crim, That is a shocking rate c. £27 an hour! You are, (I assume), a professional and as such should be charging substantially more than that. You are rating your skills at less than a car mechanic and certainly less than a bricklayer. How do you cover insurance, tax, provision of vehicle and sundries, professional advice, membership fees advertising, etc I do not carry out commercial fire risk assessments and shall not be starting if that is the best the market will stand.
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#4 Posted : 25 July 2007 00:03:00(UTC)
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Posted By Crim Hi pluto I thought I would get some reaction. What would you suggest is the going rate for one such as I? You have to bear in mind that there are Clients out there who want to spend as little as possible on H & S.
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#5 Posted : 25 July 2007 08:28:00(UTC)
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Posted By stevehaigh THIS WOULD TAKE APPROX 6 HOURS FROM START TO FINISH AND I WOULD BE CHARGING APPROX £299 FOR THE ASSESSMENT - REPORT - EXPENSES- PLUS ADDITIONAL DOCUMENTATION DEEMED NECESSARY
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#6 Posted : 25 July 2007 08:31:00(UTC)
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Posted By Hugo Well, I was a little shocked also at the figure as my construction inspections are around £150 per inspection of around 1.5 hours on average, plus travel and around 3-4 per day. I was thinking that a fire inspection, morning or days work in total, considering all the above expenses, training, CPD etc would equate to around the same as the construction fees, if not more - due to the life risk involved and the responsibility. Bearing in mind, the Fire Authority and the Inspecting officers "will" pick up and read your work. Construction site are ever transitional and tasks are completed fairly quickly - however buildings and the people within are fairly static - so the fire assessment and advice sticks. Would I be way off the mark to assume an average of a minimum am visit of £300 and hourly rate of £50 per hour thereafter? Considering that a percentage of the report itself is completed off site?
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#7 Posted : 25 July 2007 08:59:00(UTC)
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Posted By 9-Ship Although in a slightly different context - when I got divorced, I was charged £110 per hour by a Legal Executive, who was supervised by a solicitor (£190/hr). So using this as a yardstick, depending upon your level of experience/safety qualifications how about Tech SP £60/hr MIOSH £90/hr CMIOSH £120/hr This obviously includes office overheads etc, but I would still charge travelling/hotel costs on top of these figures. No I am not a consultant (anymore) - now into process engineering safety which pays far better than routine commercial safety consultancy.
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#8 Posted : 25 July 2007 09:18:00(UTC)
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Posted By Mir-cat At risk of being a little scary here, I asked a consultant (who works in a fire protection company) what he would charge. His answer was, based on the 6 hour estimate of time, he would charge for one day at £660. This includes all visits, documentation, travel etc., professional indemnity of £10m and the expert knowledge of the company. I appreciate that this probably sounds exorbitant but it approximates around the going rate for a fire protection company. They carry out work for some very difficult clients (e.g. would not pay what they didn't need to) and it is acceptable. I await responses with interest.
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#9 Posted : 25 July 2007 12:19:00(UTC)
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Posted By Crim I charge what I believe is the correct rate for the job, I'm sure everyone can justify their rates, even those who charge a lot higher than myself. I received advice two years ago and was advised to charge over £30. per hour, the problem is my Clients don't want to pay those high fees. They place more importance on the bricklayer and plumber than on health and safety! I am, however gradually increasing my fees and will eventually get there. I am self employed and work from home therefore no high overheads. I visited a construction site yesterday and will charge my hourly rate for three hours, including travel to/from site. That's a lot less than Hugo is being charged at present. Hugo, can I ask if your enquiry is for you to decide on a rate for you to carry out a fire risk assessment, or is it to get a figure in mind to pay a consultant?
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#10 Posted : 25 July 2007 20:21:00(UTC)
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Posted By shaun mckeever If it were me I would charge by the day or half day. If the job were to take six hours then to me that is a day. There are no hours left to complete another job. In addition the after sales service that comes with it i.e. dealing with enquiries and general advice on the phone may take up another couple of hours over the course of the year. My fees - £450 for half a day, £600 for a full day (8 hrs). I don't charge for the first 50 miles but thereafter at 0.4 per mile. Hotels and other expenses are not included. I believe I would have taken half a day for the job described.
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#11 Posted : 26 July 2007 13:55:00(UTC)
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Posted By Hugo Crim, The inquiry for the pricing was for myself in order to place a figure on a couple of inspection I have completed. I come from an operational firefighting background with the routine statutory inspections as a responsibility. I just didn't wish to pick a figure from the clouds. I think Shaun's approach to pricing is workable and I was almost settled on £395 for a.m. 4 hours and £60 per hour thereafter on the same visit or £395 for a basic shop/office inspection, I have not really looked towards residential homes or hotels yet but would probably use a decreasing scale if it was more timely, any ideas on that?
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#12 Posted : 26 July 2007 14:21:00(UTC)
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Posted By Ian G Hutchings Hugo What I have tended to find the most time consuming part is getting building information, such as drawings and liaising with landlords and other tenants/businesses. The time actually undertaking the physical inspection and report may not take up as much time but build in time for follow up and consultation. If people want things done on the cheap I tend to walk away. Ian.
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#13 Posted : 26 July 2007 14:54:00(UTC)
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Posted By GARRY WIZZ Not so bad, at £600 a day, with 20 days work during the month, that would cover my living costs. Time to change jobs Best of luck to you all. Garry
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#14 Posted : 26 July 2007 15:00:00(UTC)
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Posted By Crim I'm obviously too cheap! I just looked at a fire risk assessment I did last September for a three storey shop in Liverpool, 8.5 hours total worked with some travel costs and my fees totalled £256.45. I know that was more expensive than the client wanted to pay but that was what they paid. They have not asked me to do any further work for them. I will now look at raising my fees following this discussion, however I do have to consider I have few overheads therefore should not charge too high a rate. Hugo thanks for the update and good luck with furure assessments.
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#15 Posted : 26 July 2007 20:29:00(UTC)
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Posted By 9-Ship I'm staggered £256 for 8.5hrs work. WHen are safety peoplegoing to star valuing themselves properly. Thats about £30/hr. Your average plumber/gas fitter, I guess is probably charging £35 / hr or so (I have not used one for a while, so this may well be wrong - probably more) Sure take into account, your experience/qualification when setting your rate, but why should a one-man consultancy/small consultancy charge less than a large consultancy. Apart from being a little cheaper to get the work in the first place. If a large consultancy charges you out at say £50/hr it doesn't follow that a small concultancy/one man consultancy should charge down at £20-30hr. More like £40/hr. Nobody is running a charity - its business, and you are providing a professional service in line with the figures I suggested in my 1st post on this thread. Now you can see why I got out of general safety - the pay is poor.
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#16 Posted : 27 July 2007 08:43:00(UTC)
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Posted By GARRY WIZZ The value of the product is determined by, Supply & Demand. hence a plumber can charge a lot more than some of us. Garry
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#17 Posted : 27 July 2007 09:27:00(UTC)
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Posted By stevehaigh Agreed I went to the dentist yesterday for a simple 10 minute assessment by the hygienist. I walked out £26 lighter equates to £156 an hour!!!!!!!!!!!!
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#18 Posted : 27 July 2007 13:21:00(UTC)
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Posted By Alexis B I absolutely agree safety people should start valuing themselves more. Have you really costed your overheads Crim? All the things you have to do that other staff would do in consultancies? Accounts, insurance, membership subs, keeping up cpd. Unfortunately consultancies in my area are employing floods of associates and charging them out at £125 a day. No mileage for first 50 miles. I can only wonder at the standard of work. If these people are actually qualified then by not respecting themselves they encourage others not to respect them, and the profession. Very difficult to compete on 'value' when the employer is faced with costs like that. Alexis
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#19 Posted : 27 July 2007 13:39:00(UTC)
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Posted By Peter Leese As a consultant working from home my expenses for the last tax year were just under £16K - slightly raised from the norm as I replaced my noise meter. In other words, before anything else I have to cover £16K costs. So using the generally accepted formula of 200 paying working days per year, it costs £80 a day to stand still. How can associates be doing this all properly on £125 (or even £250)a day?
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#20 Posted : 27 July 2007 14:12:00(UTC)
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Posted By Crim Alexis, Are you in Scotland by any chance? I worked for a consultancy there with similar fees. I left when I felt abused by their refusal to increase the fee. All, Is it possible to expand this posting to fees charged for CDM Plans? I just wonder how much they are worth? Thanks
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#21 Posted : 27 July 2007 14:31:00(UTC)
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Posted By Alexis B I'm in Leeds Crim. Regeneration money money money and say anything to get the business. I found a sales guy following me around offering to do the work for half the price. I found out when a prospect sent him away with a flea in his ear. Unfortunately he then contacted the financial director. Alexis
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#22 Posted : 27 July 2007 14:43:00(UTC)
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Posted By Ian G Hutchings Mmm Fees, an interesting discussion. I have worked in very large consultancies and now run a niche one, so I think I have a reasonable handle on fees. I have set a scale of fees for my business and simply walk away when people are not prepared to pay a certain level for quality, service and experience. I had an interesting conversation with a larger client recently. They disgarded anyone charging low fees as they just assumed that they could not be up to much. The fee you charge sets out a level of quality in the clients mind. Solutions based consultancy tends to pay more as you are dealing with a potentially quantifiable problem the client has 'or pain'. The commodity work such as risk assessments, policies etc. tends to command lower fees, but only where the client does not value quality and the necessity. Fees I have found for B2B consultants rather than sole traders can vary from £400 per day right up to £2000+ per day. Ian
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#23 Posted : 28 July 2007 17:58:00(UTC)
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Posted By Jean This is making interesting reading. I had my hair highlighted, cut and blown dry on Saturday, the cost if I had had to pay for it would have been £90. As I provide health and safety advice to this hairdresser it cost me nothing. It took about 2 hours. (Battering of services) I had to visit a solicitor recently, the cost was £178 + vat per hour. Due to my specialist knowledge he suggested that I should do the work myself. Go back and see him if I felt I needed his expertise. I can't help but think, if you charge peanuts, you're viewed as only deserving peanuts. In this part of the world the average charges appear to be between £350 -£500 per 6 hour day. Crim, I think you might be an ex fireofficer. Do you have a pension, and does this influence your decision to accept such a low rate?
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#24 Posted : 28 July 2007 18:08:00(UTC)
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Posted By Jean PS All credit to you Crim for having the courage to be the first to reveal your charges.
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#25 Posted : 28 July 2007 19:58:00(UTC)
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Posted By 9-Ship Given that £5/hr = approx £10k year, then obviously if you want to earn £30k yr, then you need to be charging out at £15/hr as a minimum + overheads e.g. office costs, travel, hotels etc. Even £30k per year is not in my opinion a particulary good salary anymore. I know what the going rate is in the petro-chem/safety engineering consultancy side of things is - and its far more than this - more like £25-35/hr as a minimum and that is as 'employed' status, with out the hassle/costs of running & generating your own clients/business etc. Unless your are particularly successful/lucky, as I have hinted at earlier and afraid to say, because the consultancy market is fairly swamped the going rate for general commercial/industrial safety will always be poor. Either be lucky and get sufficient clients to drive your own costs down/improve your cash flow or specialise in to niche areas of consultancy/safety e.g. SIL assessments, nuclear, petro-chem etc etc. Even if you have a good service pension, from being say an ex-fireman, it still seems rather stupid to charge a low rate, you are effectively using your pension to subsidise someone elses business... Your pension is yours from previous work, and nothing to do with anyone else - surely you should be aiming to generate the best income now and not rely on past glories?
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#26 Posted : 28 July 2007 21:38:00(UTC)
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Posted By Crim Jean, Yes ex fire service with pension and other considerations to keep my self employed income low. I was the first to declare but happy to do so as I now realise I am too cheap but with set clients I would find it difficult to raise by too much? Those of you who walk away from customers who do not wish to pay your higher rates could point them in my direction as I may be able to help them, as not all companies can afford high outgoings. (I am thinking of the small one man band type contractor perhaps).
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#27 Posted : 29 July 2007 19:40:00(UTC)
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Posted By shaun mckeever Crim if you are charging a low rate one might assume that you are fully booked. Surely in those circumstances supply and demand comes in. If there is a significant demand on your time then then you start putting your prices up. You will soon know you are charging too much because nobody will be seeking your services. Of course the more expensiv e end of the market I would expect to be very, very good. That is what clients are paying for. I find it is often folly to go for the cheapest. You tend to get what you pay for.
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#28 Posted : 30 July 2007 18:24:00(UTC)
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Posted By David Bannister Just seen this thread and am very shocked. Crim, you appear to be selling yourself at the lowest rate I have ever come across and I strongly urge you to consider whether you are truly making a living. Whilst we operate in a free market I believe it does the profession absolutely no good to be seen as low worth; our advice is likely to be seen in the same light. Barristers, doctors, dentists all seem to be in plentiful supply but their advice is (mostly) highly valued - why? I have in the past challenged IOSH over the low salaries being offered in some of the Safety Practitioner jobs pages but to no avail. In my opinion OUR Institution should be doing all in its power to raise our status; part of this must be to challenge low fees/salaries.
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#29 Posted : 30 July 2007 21:17:00(UTC)
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Posted By DJ Ladies and Gents, I think these threads show why, in my case, after 3 years of full-time study, two years professional probation and 15 years practical experience, I am struggling to earn a decent living. Everytime I tender for work, somebody comes in with an extremely low-charge out rate that cannot do them or anybody else any favours. I charge a mere £55.00 per hour with travel at 40p per mile and I lose more jobs than I win because somebody will work for less. Regards. DJ.
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#30 Posted : 30 July 2007 22:13:00(UTC)
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Posted By Alexis B Crim We're not all in your fortunate position re the pension but perhaps you are not uncommon and this is one reason so many are prepared to accept low rates. Rather than the rest of us pass on prospects ... may I suggest you arrange an end of term review with your clients? You can review work to date, what's outstanding etc tie up loose ends and then negotiate a rate for any other work AS YOU ARE GOING TO INCREASE your rates at the end of August. . Of course this doesn't help deal with the consultancy employing cheap associates. I think we need a union! Alexis
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#31 Posted : 31 July 2007 10:14:00(UTC)
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Posted By 9-Ship Using the earlier figures mentioned by others, I would estimate the following £256 for 8.5hrs work = £30hr - note does not include allowance for business overheads etc If using the probably optimistic figures of 200 days paid consulting days per year, would yield the following theoretical income for a 1 man consultancy. Based on a 7.5hr day = 200 x 7.5 = 1500hrs per year. 1500 x £30 = £45176 generated However less business costs of about £16k = £31k salary. If the £16k costs doesn't include travelling/vehicle costs then these costs also need taking off, if not charged to your client. Also remember there will be 'dead' days, making sales visits etc that ultimately yield nothing if the sale isn't successful, preparation time for sales meetings/drafting quotes, meeting accountants etc - all time/days that have to be paid for out of actual paid days. Ultimately, unless you do consider yourself to be partly retired etc, at these rates, you might as well get a job paying £35k or so and save yourself the hassle of running a business. As with my previous postings, in the higher risk industries, it is quite easy to exceed these rates. I certainly do, and I am no where near being paid the top rates available in safety engineering, for the high hazard industries. All food for thought....do you new kids, really want to go self-employed / want to change to the safety industry. Don't get me wrong, I am not rejecting self-employment, just that it has got to be worth the effort. To be paid less than an employed job, whats the point? In my view, unless being self-employed generates an income of at least 1.5 times a standard safety job e.g. circa £45k salary (after business costs etc) then I would conclude the benefits are marginal. In reality I would be looking for a self employed salary 2-3 times a typical general commercial safety salary before considering it. Assuming a typical safety salary is £30k, this means a self employed salary in the region of £50 - 60k. Once costs etc are added in, then your sales need to be in the region of £80k. Therefore at 1500paid hrs year = an hourly rate of 80k/1500 = £53hr is required. So some of the other figures of about £50 hr seem about right and also inline with my earlier suggestions compared to other trades etc.
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#32 Posted : 31 July 2007 11:02:00(UTC)
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Posted By 9-Ship Oops - £45k less £16k costs is of course a salary of £29k.
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#33 Posted : 31 July 2007 11:16:00(UTC)
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Posted By Tony abc jprhdnMurphy I am ashamed to be associated with the above discussion Please refrain from using this forum for anything other than safety, its not a Bank of England forum.
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#34 Posted : 31 July 2007 11:27:00(UTC)
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Posted By 9-Ship Tony - I take you work for FREE then? I would suggest this is valuable information/experience I have gained and made available for other who might be considering the economics of being a self-employed safety consultant. Business issues/cost are very relevant to self employed IOSH members and as such should be open to discussion, comment and advice. If you are employed, and have no wish to be self-employed etc, fine, but let others who might need this information consider it and draw their own conclusions about the commercial reality of being self employed.
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#35 Posted : 31 July 2007 11:39:00(UTC)
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Posted By Peter Leese 9-ship My £16K includes travel etc, for the rest, I don't think you are too far away. Of course one other advantage is the relative freedom in setting your own hours and days of work.
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#36 Posted : 31 July 2007 11:41:00(UTC)
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Posted By Alexis B Tony Perhaps if there were more discussion along these lines individuals would have more confidence in stating their worth - within organisations as well as external consultants and H&S would have a higher status within the workplace. I have found this thread extremely useful and appreciated everyone's openness. Alexis
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#37 Posted : 31 July 2007 12:06:00(UTC)
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Posted By Tony abc jprhdnMurphy No doubt many of you have found this topic to be informative and interesting, me too for that matter. The problem, as I have stated before on many occasions is that safety discussions that involve cost and/or litigation issues serve no good purpose and give safety professionals a bad name. The service I offer does indeed come at a price, and my expertise has a worth. However my professional etiquette and ability to perform stand aside from cost issues. My question to anybody conducting a fire risk assessment is not how much you can earn but have you contributed to a safe system and can you walk away satisfied that you have contributed to an improvement in working conditions for people in your industry.
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#38 Posted : 31 July 2007 12:33:00(UTC)
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Posted By Peter Leese ..... and can I afford some chops tonight or will I have to have bread and water... Come on Tony, we work for a living. Ask yourself this - if you were not being paid would you continue to do the work no matter how well meaning it is. Possibly you can say yes, but I and other realists would give you a resounding NO.
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#39 Posted : 31 July 2007 12:45:00(UTC)
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Posted By mark limon Tony,I think it is a well rounded informative discussion.Those that are considering a freelance career may be more or less likely to go for it.However it gives an indication of the financial rewards available There are few people who can afford to be in a career for the good of everyone else.Most have families to house and feed so financial rewards are important. I would much rather be concentrating on the assessment Im doing than thinking about whether or not I can pay my mortgage.
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#40 Posted : 31 July 2007 12:58:00(UTC)
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Posted By 9-Ship You can also make a stab at other ball park figures. At £53hr and a 7.5hr working day, is just about the same as a daily rate of £400. Therefore in theory you need £80k / £400 = 200days of work (which we already know) or looked at another way 200 clients, if you only work for one day for each client per year. If you assume that you need to approach possibly 3-4 times that number of potential clients to actually secure the work you need, that is alot of work in itself. Given the response rate for mail shots is only about 1-2% and something similar for telephone cold calling, that either alot of letters and/or phone calls. Therefore, it is quite easy to see, that client retention is a significant issue, given the cost/effort of finding new clients. Of course you can always, go for less clients and either charge them more or get more days work from them. If you could get 10days work per client, thats £4k equating to 20 clients. The drawback is most SMEs do not need 10days of consultancy work per year - in my experience 2-3days at most. Also if you only have 20 clients/10days each, to loose one client is quite a significant loss - placing too many eggs in one basket, comes to mind. So if a SME needs 3 days consultancy/yr = £1200 = £80k/£1.2k = 66 clients and so you are back into the cycle of how many sales contacts you need to make in the first place etc etc Anybody want a consultancy manager? £60k p.a. and I might consider it (to make it worth while leaving the petro - chem industry)
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