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Posted By Gary Eastham
I am considering moving into the consultancy field and am in the midst of researching all areas of the subject. My main worry is with regards to consultancy fees, pitch too high and you quote yourself out of the market, pitch too low and you won't be taken seriously! Can anyone help, is there a formula for working out appropriate charges/fees.
Thanks
Gary
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Posted By Mike Charleston
Gary
No there isn't!
There has to be a trade-off between what your industry sector considers acceptable, what you consider to be an acceptable minimum level of earnings and what you think the market can actually bear.
Get these issues out of perspective and you either win too much work but earn too little for the effort applied - or you don't earn enough because others win the work.
In trying to identify the first of these, be aware of major shifts in client perspective between what they might pay for a first rate management consultancy on the occasions when the business needs that kind of input, and what they envisage paying for Health & Safety support. Your aim really needs to be a level between the two, where the contribution is seen as valuable and therefore pricey, yet modest by comparison with the top notch people that carry high overheads.
We could talk privately about this - if you would like to do so, send me an e-mail by clicking on my name in blue above. I'll then send you my contact details.
Mike
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Posted By Dave Wilson
Don't want to upset the Consultants among us,
but mike is right a consultant will get whatever he can and the more the better, lets be realistic here its a business and not a charity.
Its the same in all consultancy trades not just H&S
Geographical location and whether you include disbursements etc will also affect the price.
Dont forget that when you become a consultant you will have to be a member of your branch and speak at the Conference.
Cynical moi!
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Posted By Robert M Edwards
You will also want to arrange your fees to include the risk involved in providing the advice. We outsource some of our consultancy work and expect to pay between £400-£750 plus VAT per day for single day appointments.Price is negotiated down for regular work.
However we also expect our consultants to have undertaken similar consultancy work before and carry the relevant qualifications and their own negligence insurance to undertake whatever job we instruct them on.
When you are starting out you may need to adjust your fee structure to obtain work to build up your reputation. The comes a point however where most businesses regard the price too low as a serious business proposal and will not be interested. I hope this helps. A bit of business planning in advance of the 'jump' works wonders.
Have a good look at your potential market and phone a few contacts to se what they are currently looking for and at what price. You will then get a feel for the sort of market you will be in and the cost constraints you are working with.
Good luck!
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