Hourly Rates are Personal

 

The hourly rate you should charge as a consultant depends on several factors such as the amount of days you can work a year, your overhead costs such as rent and the annual salary you want to make.

 

These factors vary from person to person, making hourly rates very personal.

Take your salary for instance. The salary you can earn depends on the level of experience you have and market situation for the industry you are in.

Sometimes you read about consultants asking for examples of hourly rates, only to receive a wide range of rates as answers. I agree, it is nice to know what others in your area are charging. However you have to realize that your personal situation is different from other consultants. The hourly rate you should be charging can be quite different from the consultant across the street!

Review Your Rates Regular

Your personal situation is something that is always changing, so it is good practice to for consultants to review their rates on a regular basis. Both starting and experienced consultants should do this.

6 thoughts on “Hourly Rates are Personal”

  1. Bill, thank you for the link. It is always nice to know what others are making. I looked at the site. It also covers some major cities world wide.

  2. Take a look at glassdoor.com it is helpful insite to what people are being paid.
    Glassdoor is free &  lookoffers a inside look at jobs and companies. Salary details, company reviews, and interview questions — all posted anonymously by employees and job seekers.

  3. It is very interesting to read the comments posted. Not long ago I posted  a question in the project Manager Network oasking about the hourly charge for project Managers.  The truth is I have no experience in PM but I am certified and as such I need some real life experience to build myself.  I dont mind working on a Project with a experience Manager just to gain some experience

  4. Glen thank you for "real life" comment. I agree that as a consultant we have to be flexible with our rates when we are negotiating a certain contract. But when doing that, we still need to know what our real rate is. Not only that, you also have to know what personal data went into determining your hourly rate, so that you know where you can be flexible and where not. I would hate to see you work a job where your costs (personal) are more than your income.
    It is good practice to know your boundaries when negotiating a contract.

  5. If only it were so simple.
    Many factors go into the rate that you can charge. Yes, you'll probably develop a reasonable rate based on your costs, salary and billable hours. In addition to that the market will help determine the rates that are available in your area.
    However, how long the job will be for will affect the rate. As will your interest in the job. And of course, the value your client places on the work being done also affects the final rate.
    In fact, there is a whole school of thought on pricing your rates that recommends basing your price on customer value (and bypassing rates entirely).
    Pricing is unfortunately, a complex, difficult and seldom well-done art for project management consultants.
     
    Glen Ford, PMP

    http://www.vproz.ca

Leave a Reply

Your email address will not be published. Required fields are marked *