Many consultants and freelancers make the mistake of confusing average consultant rates with standard prices; that's not the case. However, it's highly unlikely that you'll actually be billing 40 hours a week, especially in the early stages of your consulting business. It's natural that each of these responsibilities entails varying IT consulting rates per hour depending on the scope and complexity of the task, and each project requires a balanced and personalized combination of these services. Don't hesitate to check the consulting rates by industry, but don't use them as a bible to set prices, use them as other reference data.
Multiply that by your hourly rate and then add a profit margin of 10 to 20% for unexpected contingencies, and voila, you have a rough estimate of a consultant's fee per project. So, whether you want to use the three-times-per-hour method for equal rates or the more complicated 52-week method, your initial fee is critical to the long-term viability of your consultancy. Companies usually hire contractors and consultants on a regular basis, so they will be aware of the current rates and will perceive your value depending on your location within that range. Some clients will prefer to pay consultants by the hour, while others will want to pay per project or advance.
If your clients have regularly hired consultants or freelancers, they'll be familiar with the average consulting market rates. Some may charge per project, others may charge an hourly rate to a technology consultant, some may charge a daily fee, and others may work with a monthly advance payment. Regardless of the consulting fees you charge, you'll be able to dedicate more billable hours to clients without having to worry about administration. It's natural that you don't like the process of setting consulting fees, but you shouldn't have to give up money or sleep because of it.
This should be used if you want to make a complete transition from a corporate job to running a full-time consultancy. Remember that your consulting fees aren't just the price you pay for doing business, but they're a representation of the value you bring to clients.
