How to Set Consulting Fees
Know the Ropes: Pricing for Pain

Introduction

A key challenge for the independent consultant is how to set consulting fees that are reflective of the risks inherent to the assignment.

This page is one of a series that together provide guidance on some key considerations to keep in mind when negotiating with clients, finalising proposals for work and setting consulting fees.

Pricing for Pain – a Huge advantage for the Independent Consultant

If you know that there will be significant pain, difficulty and risk associated with delivering a potential assignment then as an Independent consultant you have the discretion to price it accordingly.

If you offer to do the work a low price and the client accepts then you have just shot yourself in the foot.

So, price it high; set consulting fees to reflect the risk and difficulty of the assignment and at a rate you would be genuinely happy with if you actually had to do the work.

Imagine delivering the project - - imagine yourself in the client’s office alone at 1130pm still working - - you are up to your neck in the project and it’s not a nice place to be.

You’ll wish then that you’d doubled the price and that if the client had said ‘No’ at that higher price that you had walked away.

You would have protected your integrity and maintained the relationship…

…and most importantly you would not now be faced with delivering a painful and high risk assignment for a low fee.

There are a number of great books on pricing for professional services.

One of the best is by Ron Baker – Professional's Guide to Value Pricing …sound strategies and advice on how to avoid leaving cash on the table when negotiating a price with the client.

There are plenty of new and used copies available on Amazon.