Consulting Fees

[Derek A. Neighbors]

Just in case no one has done the math

60,000 / 2080 (hours) = 28.85

Now of course there are things like a normal employers benefits (and 
their tax contribution to factor in)  So say you figure in 10,000 for 
benefits and lump 10% for tax contribution and you are at 77,000 a year 
add another 10% for office supplies space etc... and you are at 84,000.

The other way is when you hire someone you figure 30% of salary will be 
needed so if the salary is 60,000 72,000 would be the outcome so the 
above of 84,000 is pretty high.

84,000 / 2080 (hours) = 40.38

So I am curious to those that give consultants a bad name buy wanting 
100 plus an hour.  Do you really think that 60,000 is paltry salary, or 
do you expect companies to burden your time without work?

Based on these numbers anything more than 80 an hour is HIGHWAY robbery. 
 As you would only be working half a year to earn 60,000 or if working a 
full year making 120,000 with full benefits etc included in the 
calculation.  I just ask that you re-evaluate bagging on 'the microsoft 
tax' if you are charging more than 80 an hour and ask are you charging 
'the consultant tax'?

;)

-Derek

Steve Holmes wrote:

>Gee, that sounds like the Borland phenomenom; remember when Borland or
>Turbo C sold for $40? Then they jacked the price up to almost #300 or $400
>and sales went up! Personally, I don't think a product is better just
>because it is priced higher.  If everybody did that, free software would
>never never make it.  I realize providing a service is different though.
>
>On Sat, 2 Mar 2002, George Toft wrote:
>
>>I knew a guy that was charging $35 per hour, and had so much work
>>he couldn't handle it.  He raised his rate to $75 per hour and the
>>work tapered off almost to nothing.  He raised it to $125 per hour
>>and was flooded with work again.
>>
>>He asked one client, whose bid he lost at the $75 rate: "Why did
>>you hire me at $125 instead of $75?"
>>
>>Their answer: "At $75 per hour, we did think you knew what you
>>were doing."
>>
>>George
>>
>>
>>Linux wrote:
>>
>>>Anyone who wants to pay $25.00 an hour to a consultant deserves just what
>>>they get.
>>>
>>>I would charge no less than $65.00 an hour for the most basic of things.
>>>
>>>If you have the skills to be a true consultant you deserve _OVER_ $100.00 an
>>>hour.
>>>
>>>If anyone could do this stuff they wouldn't need you!.
>>>
>>>I think I'll just go sell cars........................
>>>
>>>Keith
>>>
>>>Message: 11
>>>Subject: Re: Consulting Fees
>>>From: Craig White <craigwhite@azapple.com>
>>>To: plug-discuss@lists.plug.phoenix.az.us
>>>Date: 01 Mar 2002 09:21:00 -0700
>>>Reply-To: plug-discuss@lists.plug.phoenix.az.us
>>>
>>>On Thu, 2002-02-28 at 14:30, Vaiod wrote:
>>>
>>>>What is the going rate for general IT consultation work.  Duties would
>>>>include the very basics and could include major work such as
>>>>installing/configuring new hardware/software systems.  Just a general
>>>>reasonable hourly rate is kind of what I am looking for.
>>>>
>>>----
>>>I charge $70 per hour less prompt pay & volume discounts - I am kept
>>>very busy. Seems to be a fair price - sometimes I feel guilty charging
>>>that for simple stuff but I can make that same hourly at other customers
>>>so I always have to bear that in mind.
>>>
>>>Craig
>>>
>>>--__--__--
>>>
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