Who would have thought that when it comes to pricing consulting services it’s actually a lot harder than in fact providing them? Anyone active in the field of consulting whether it be marketing, design, branding, management, or whatever, understands that the competition is fierce, and underbidding the next closest competitor spells the difference between getting the client to sign on the dotted line and losing the deal.
That being said if you don’t charge enough not only will you be mad at yourself for giving too good a deal you can actually damage your brand image and even loose business simply because clients have a hard time believing that anything this high quality could be had at cut rate cost.
Many professionals in the field of consulting find that offering consulting services at an hourly rate is often the best way of mixing competitive pricing with high quality work. In this scenario you need to come up with an hourly rate that you feel satisfied with and at the same time is competitive so you have a good shot at rounding up projects.
Another pricing option that many consulting firms or individuals like to use are ongoing contracts – in this case the consultant or company commits to providing a certain level of service over a predetermined period of time, say monthly, and the client agrees to pay a certain amount of money at predetermined intervals. This kind of pricing system works great in situations where the work is steady and the hours and commitment don’t change too much with time.
And last but not least, and probably one of the most popular pricing methods for consultants out there when it comes to offering consulting services is the project invoice method. Project invoicing is great because both parties understand ahead of time the full cost and scope of the project. Obviously if the work increases during the project and is much more or less then expected at the outset the pricing can be adjusted accordingly.