Discussion
Hi
Looking for a bit of help please.
I've been approached by a business who is a competitor to a previous place I used to work (now self employed) who are looking for information about a manufacturing process.
They've asked me what I want to be paid and I have no idea. Do I pick a number out the air?
This product made company A £900k/year net profit.
Cheers
Looking for a bit of help please.
I've been approached by a business who is a competitor to a previous place I used to work (now self employed) who are looking for information about a manufacturing process.
They've asked me what I want to be paid and I have no idea. Do I pick a number out the air?
This product made company A £900k/year net profit.
Cheers
Ask them what they usually pay/what they are prepared to pay?
The first consulting work I did worked this way. They asked me how much and I said how much do you normally pay and went with that. After that I based all other work on that rate.
The first consulting work I did worked this way. They asked me how much and I said how much do you normally pay and went with that. After that I based all other work on that rate.
Edited by Frimley111R on Monday 11th June 16:27
The amount a company makes has no impact on the day rates it offers consultants.
There's generally two ways of managing a consulting project.
1. Lump Sum. They give you a total budget for the work, normally issuing a Terms of Reference (or similar) that lists the deliverable required. The total sum includes everything; your time, expenses, etc. It's then up to you to decide if you are happy to do the work for the amount they are offering.
2. Day Rate. You estimate the number of days needed to do the work and quote this along with your day rate to the client (plus expenses) and it is up to them if they are happy to give you the work for the amount you've quoted.
As above, no harm in asking what sort of day rate they normally pay but as a very very rough guide, a good to starting point is to consider a consulting rate calculated on an equivalency of 2 x normal employment rate. So if you worked for the company and you salary equated to, say, £25 and hour, your consulting rate would be £50 and hour. But as I say, this varies enormously so only to be treated as a start point.
There's generally two ways of managing a consulting project.
1. Lump Sum. They give you a total budget for the work, normally issuing a Terms of Reference (or similar) that lists the deliverable required. The total sum includes everything; your time, expenses, etc. It's then up to you to decide if you are happy to do the work for the amount they are offering.
2. Day Rate. You estimate the number of days needed to do the work and quote this along with your day rate to the client (plus expenses) and it is up to them if they are happy to give you the work for the amount you've quoted.
As above, no harm in asking what sort of day rate they normally pay but as a very very rough guide, a good to starting point is to consider a consulting rate calculated on an equivalency of 2 x normal employment rate. So if you worked for the company and you salary equated to, say, £25 and hour, your consulting rate would be £50 and hour. But as I say, this varies enormously so only to be treated as a start point.
AC123 said:
OK - thank you. A way to work it out is what I was looking for 
REMEMBER THIS: Whatever you can do in a day should take a week, ask a lot of questions and when you get a reply ask another question about the reply (oh sorry thats a business coach) Seriously think this way, if its a day a month for a year charge less than if its 3 days then nothing - try and get a top up gig say every quarter or more from it and get this in a contract!
I still do a day a quarter on a job I did 3 years ago that took a week, I check they are using the process we introduced and if they have any ideas to refine it - possibly I could get more work from refining but I am fully committed to my current project at present.
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