Consultant day rates

[Leftie]

I work through a network of associates, usually niche market people with a particular set of skills which I buy in and sell on to the public sector. They mainly have a legally required qualification, or loads of hands on experience. It is 'swings and roundabouts' in that I will sometimes buy them in and sell them at cost price to secure the work, but then sometimes make a bit of profit on others whose skills are more generic and whose day rate is below what the public sector will tolerate. Anyway, to the point:


I have worked on a day rate of between £450 and £500 a day for most people, even quite senior academics who advise on projects. This last week two of the associates (one old and one new) have quoted me day rates of £600+ and £850 respectively (provided I was prepared to offer at least 5 days work). The CV of the £600 a day is impressive, well qualified, loads of experience and evidence of working on sucessful projects. The CV of the £850 a day lady is good, but not exactly an arm's length of experience, qualifications and proven success. She has a public sector background and jumped ship some years ago, to do a diversity training contract with the Foreign Office. The public sector seem willing to pay her £1000+ a day, which greatly surprised me because I always understood they had an upper ceiling of £500-£600 a day, especially for project work where they were buying 20-50 days at a time. Budgets don't go far when you buy in 30 days at £850.

Got me to thinking I may be underpricing myself and my other associates at £450-£500.

I know it is a difficult question, but what kind of day rates are acceptable when selling to the public sector these days? Is anybody paying £850+ a day

I think £850 a day lady talked her way out of 20-30 days detailed work work and into 2 or 3 days as an adviser, because at her rates we wouldn't get the work done as she would have taken over half the budget!

[Leftie]

UpTheIron said:

Doing what though? I've worked on Public Sector IT projects where day rates have been well over £1k/day, even for long term projects. And yes, they have delivered on time and on budget.

HR research work. My experienced interviewers with experience in the sector are paid about £400-£450 a day (telephone or face to face) and my more generic researchers about £250-£300. I have paid up to £1300 a day for a top academic with an international reputation to give specific advice or QA what we are doing, and they live with that for odd days, but not to conduct day-to-day research. When they charge over £500 I tend to use them as advisers rather than foot soldiers.

I think 'diversity' is so sexy that they can demand their own prices, as it is usually a stressful an challenging day, but telpehone interviewing is much more relaxed. I also don't fancy paying £850 a day for someone to arrange their own interviews, because that hurts at £450 a day.

[Leftie]

Don said:

Day rates for consultants vary between £500 and £1400 in my experience. £1400 is what a consultant from the big 5 (or today's equivalent) might be charged out at. Maximum top rate NOT from the big 5 around £1K - for something really, seriously unobtainable any other way.

Systems consultants (like what we do) probably around the £750 mark. More if the skills are niche, less if they are not.

Hope any of the above helps.

It sounds to me like you could get a better rate...but will it make you more profit?

I keep on thinking that 20 days at £450 is better than none at £850! Also, if I do a project I want to do a project, not half a job and trim the needed work just because somebody wants £850 a day. I have cut her days from 20 to 5 'advisory and review' days on the tender so that am only using her nche skils where I have to, and filled her space with someone I pay £325 a day to, so a bit of profit for me.