Consultancy rate... No idea where to start!

pioneer2000

pioneer2000

pioneer2000

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So, have been approached to do some consultancy work and been requested to state what rate I desire... Now bearing in mind i've never done this before - what kind of figure should I be looking at?

I've read that one should usually triple their annual salary once converted to an hourly figure? But is this a reasonable way to calculate it? :o
 
pioneer2000 said:
So, have been approached to do some consultancy work and been requested to state what rate I desire... Now bearing in mind i've never done this before - what kind of figure should I be looking at?

I've read that one should usually triple their annual salary once converted to an hourly figure? But is this a reasonable way to calculate it? :o
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eh.... what do you do? :p
 
It depends if you are a proper consultant or just somebody with a fancy job title.

If you are a proper consultant - ie somebody with many, many years experience at all levels of your chosen field, then go for it, the sky is the limit, people will pay a lot of money for your vast experience and wealth of knowledge.

If you graduated from Uni 34 seconds ago and think fixing printers freelance is consultancy then how about £10 an hour?
 
pioneer2000 said:
So, have been approached to do some consultancy work and been requested to state what rate I desire... Now bearing in mind i've never done this before - what kind of figure should I be looking at?

I've read that one should usually triple their annual salary once converted to an hourly figure? But is this a reasonable way to calculate it? :o
Click to expand...


I can tell you, but it would cost you £300+VAT.:D
 
pioneer2000 said:
So, have been approached to do some consultancy work and been requested to state what rate I desire... Now bearing in mind i've never done this before - what kind of figure should I be looking at?

I've read that one should usually triple their annual salary once converted to an hourly figure? But is this a reasonable way to calculate it? :o
Click to expand...

What do you do and what's the market rate for it?
Generally it's an employers market at the mo, so expect rages to be a little lower than normal.
 
Haha... yes, perhaps more background is needed.

This is for accountancy systems advice within the Lloyds insurance market in London. Have been approached as I have unique experience of an accounting package that a company has taken on. (i.e. there is literally no-one else that knows the system & there are no procedures/manual provided by the developers... therefore making it quite awkward for the company in question).

They need someone to guide the initial implementation and creation of procedures going forward. Judging by some silly websites (i.e. payscale etc) I can only come up with figures around £40/hr... based on my level of experience / location / job (I work as an accountant within the Lloyds market)... but my problem is that I have no idea if this is ridiculously high or low.
 
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Well, I'd be talking right now not to an internet forum, but the person that made the decision to buy that accounting package. Or the person that just sacked him.
 
Muchos! Sounds like they need you. Consultants can charge over a thousand a day. If their presence is worth more to the company than the amount they are being charged, however much it may be, then they are usually happy to pay it.
 
I think your in a good position to ask for a decent rate judging by how rare (you say) it is to find someone to provide that sort of advice.

Would be the wrong person to ask though as i dont work in the IT/ accounting field..
 
are you looking to build up a long term working relationship of just make a quick killing, that could make a lot of difference
 
The Abyss - lol! It's a bit of a strange situation as they have only got stuck using this system as they bought out another company that used it... at the time of purchase they agreed but apparently no-one thought to ensure it was suitable for their needs / they had someone who could actually use it! The mind boggles!
 
Only person who has a clue? 40ph is shockingly cheap.
I'm guessing you are going through an agency, ask their advice.
Also, as asked above, if you think this will be long term then you also need to consider umbrella co / limited company.
 
Rotty said:
are you looking to build up a long term working relationship of just make a quick killing, that could make a lot of difference
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I have been advised by the director of finance that they currently have no vacancy to recruit for but they will certainly consider a full-time position if and when that arises. Obviously that's easy said but I wouldn't mind having that as an option down the line...
 
The_Abyss said:
Well, I'd be talking right now not to an internet forum, but the person that made the decision to buy that accounting package. Or the person that just sacked him.
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I'm guessing you don't have much experience with small financial software companies - I currently work for one and documentation is patchy, there is a niche market for contractors and pretty much all the contractors out there worked for us at some stage as that is about the only way you're going to learn how the system works.
 
Morba said:
Only person who has a clue? 40ph is shockingly cheap.
I'm guessing you are going through an agency, ask their advice.
Also, as asked above, if you think this will be long term then you also need to consider umbrella co / limited company.
Click to expand...

I was actually approached directly by the finance director (luckily an acquaintance recommended me to him!) - I wish I did have an agency to ask! Perhaps it is worth my time checking with one... provided they don't mind!

I don't mind admitting I have no idea when it comes to consulting - just want to avoid looking a fool by going back to him with an astronomical rate I guess!

Please tell me if I need to provide more information... we're getting some wild rates here!
 
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1. Depends on experience / qualifications / number of letters after your name
2. Market Rate
3. Region

You would have to be pretty special to ask for more than £40/50 per hour unless your really really rare!

Those that are quoting £200-600 per hour are living on cloud nine.

Just to put this in perspective, Paul McCartney's lawyer was charging £300 per hour during the divorce.

Unless your a retired director, ex-CEO of a blue chip company forget about asking for hundreds an hour!
 
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