Consultancy rate... No idea where to start!

[1ofaKind]

I'm an analyst programmer (more than that but you get the drift) and our company charges me out for consultancy at 800/day (I've got 20 years experience in our industry).

We had a customer I was doing work for and there customer was using Oracle/SAP and their consultants were on a minimum of 1k per day.

My friend when he does self employed contract work charges a minimum of 450 per day.

As has been said above depends if you think you can get a position out of it at the end of the day or just want to gain a big amount short term and move onto the next project.

Good luck.

 

[Dave M]

The fact that it's a critical financial system that only he knows makes his time VERY valuable. The figures I quotes may even be a little on the low side.

Indeed and lets face it its a bank, they have no notion of the value of money

 

[Thiassi]

2nd agency just came back with £20/hr...

I fear specialised knowledge does not equate to much without an extensive CV / experience to support it. I've only approx 5 years experience in the field but 3 of those are using this package - hence why I have key knowledge of it's structure and functions.

Again, 99% of agencies don't know squat.

You've got enough experience to be worth more than £20p/h. That's just too low no matter how you look at it.

You would be talking about ~£150 a day which is the lower end for an experienced (very) generalised server support contractor. (I would know about that. )

 

[Jonnycoupe]

There are plenty of mechanics and plenty of contractors.

Where?!

 

[Burnsy2023]

Indeed and lets face it its a bank, they have no notion of the value of money

Indeed. If they really want you, you can pretty much name your price.

 

[burns]

I'm a Dynamics Nav Consultant (ERP/Accountancy type software). I'm usually charged out at £850/day. If there really are that few people that know the software I would be guessing over £1K/day.

 

[s0ck]

it might be worth getting a face to face with the director. you can gauge him as you move from 2k/day, down to something that may be more palatable for him

 

[robbiemc]

I’ve worked on contracting for a while (although perm now) and as a skilled project manager I’d be looking at no less than £300 per day.
However I do have a friend who has been working on specialist banking systems and she was telling me that as it’s so specialised, she’s being chased for contracts circa £800 a day.
Contracting within the banking sector really seems to be a different ball-game, and if their backs are really against the wall with a complete lack of knowledge then you’re in the driving seat.
P.s forget charging by the hour – that’s not what an independent contractor should be looking at – charge at a daily rate and make sure your contract stipulates a realistic notice period (often a week).

 

[FishThrower]

Remember one thing.....

if your the only person that knows about the system, they are expected to pay you good money.

the Lloyds Insurance market makes a killing each day. I used to go there a few times every week as I supported a couple of the syndicates there IT wise.

also dont forget that the longer term the contract is, the more chance the rate will be lower, how long is the work for?

say £400 a day, and if its too much they will negotiate it, if they are desperate for your skills theres not a chance in hell they would reject it all together.

the ball is in your court, not theirs.

 

[Burnsy2023]

it might be worth getting a face to face with the director. you can gauge him as you move from 2k/day, down to something that may be more palatable for him

I would suggest doing this. I would charge at least £1k per day though.

 

[burns]

I should point out when I say we charge 1K per day this isn't for what I understand most contractors do. That's for developing modifications to their system, software installs/upgrade that may take in the region of 30 days, not for a 6 months contract or something.

 

[MiNxYyY]

Are you doing this for a current employer?

So they will charge employers to use you and they take the profit?

Or when you say you charge £800 a day, does that go to you?

 

[daz.rathbone]

Just FYI, worked with a lot of contractors for a world-leading fund management system (another finance package with hard to find skills), and the decent contractors are around £1000 per day, so going on an avg 8hr day I'd prob be looking around the £80-100ph mark, especially if the product knowledge is as hard to find as you say.

Generally your bog std IT contractor goes from 200-450per day.

 

[Morba]

There are plenty of mechanics and plenty of contractors.

The OP is saying he has specialised knowledge the firm needs, specialised costs more. The higher rates are offset by the fact specialised roles may not come up as often.

I know why he should charge more, but the compariso to mechanics doesn't make sense

 

[britboy4321]

Say £400 per day.

£20 per hour is pants for that kind of consultancy. You'll look like a loser for even suggesting it. Or, more likely, the agent will charge them £450 per day and pay you your £20 per hour and wet themselves laughing whenever they think about it!

And yes, this has happened to a few friends of mine - the biggest difference being a guy getting £220 a day and the agent had him out at £750 per day!!!

 

[Morba]

Your friend wants shooting. How on earth did the company agree to paying that? They know how much they pay the agency and how much a percentage they are getting from it.

 

[kai]

I'm a Dynamics Nav Consultant (ERP/Accountancy type software). I'm usually charged out at £850/day. If there really are that few people that know the software I would be guessing over £1K/day.

Same - Microsoft Dynamics GP.
We charge £975.00

Burns what partner do you work for?

 

[britboy4321]

Same - Microsoft Dynamics GP.
We charge £975.00

Burns what partner do you work for?

And Burns .. do your company pay you £52K permie wage (or something) and say they 'can't afford any more'? Hoho .. The day I found out my daily (and I was on 22K a year permie wage for a 'consultancy') was the day I went contracting...

 

[kai]

And Burns .. do your company pay you £52K permie wage (or something) and say they 'can't afford any more'? Hoho .. The day I found out my daily (and I was on 22K a year permie wage for a 'consultancy') was the day I went contracting...

You get paid for your knowledge.... It's a very specialist area.

 

[Mikey]

Hardware Engineer, Enterprise Servers and SANs

Very nice, I'm a Windows, firewall / everything else engineer. Used to work for Atos and wish I was still there at times.

Just need to get my ESX certs etc. to get my salary up more.