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How much to charge for consulting work?

Started by Monsterlover, September 21, 2011, 07:29:28 AM

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Monsterlover

September 21, 2011, 07:29:28 AM
Yesterday one of my old accounts called me and asked if I would be interested in doing some consulting work for them.

When I called on them we did a lot of work in the milling area and saw gains regularly of 30-50% in productivity.

They are having the same troubles with 2 new Swiss style machines and would like my help.

I went in and met with them yesterday for 3 hours.  Their issues are not insurmountable and I think we can make some really nice gains.

I do not know what to charge them and need some input from you all.

I'm kind of thinking in the $50-$70/hr range.

I don't want to underchage them but at the same time I don't want to gouge them.  I do like these guys after all, and there's the potential for my shop doing some work for them.

Thoughts?
"The Vincent was like a bullet that went straight; the Ducati is like the magic bullet in Dallas that went sideways and hit JFK and the Governor of Texas at the same time."--HST    **"A man who works with his hands is a laborer.  A man who works with his hands and his brain is a craftsman.  A man who works with his hands, brains, and heart is an artist."  -Louis Nizer**

WarrenJ

#1
September 21, 2011, 07:36:00 AM
A decent hourly rate plus a bonus based on measureable improvements.
This isn't a dress rehearsal for life - this is it!

Monsterlover

#2
September 21, 2011, 07:43:24 AM
Interesting.  I hadn't considered an improvement based bonus.
"The Vincent was like a bullet that went straight; the Ducati is like the magic bullet in Dallas that went sideways and hit JFK and the Governor of Texas at the same time."--HST    **"A man who works with his hands is a laborer.  A man who works with his hands and his brain is a craftsman.  A man who works with his hands, brains, and heart is an artist."  -Louis Nizer**

AJ

#3
September 21, 2011, 07:49:16 AM
Quote from: WarrenJ on September 21, 2011, 07:36:00 AM
A decent hourly rate plus a bonus based on measureable improvements.

+1

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Monsterlover

#4
September 21, 2011, 07:58:00 AM
My machining forum is saying $60-$80 to cover tax liabilities

I'm guessing this to be around 20 hours worth of work worst case.

They should see a cost savings of thousands based on how many of these little parts they make a year.
"The Vincent was like a bullet that went straight; the Ducati is like the magic bullet in Dallas that went sideways and hit JFK and the Governor of Texas at the same time."--HST    **"A man who works with his hands is a laborer.  A man who works with his hands and his brain is a craftsman.  A man who works with his hands, brains, and heart is an artist."  -Louis Nizer**

RAT900

#5
September 21, 2011, 08:49:35 AM
My plumber in Asheville gets 90 an hour...go from there

Also you may want to draft a SOW scope/statement of work or something

or work per diem or per hour with a published rate

so you don't get sucked into the black hole of un-billable ad hoc assistance

if you want a cut of the improvement in savings to them define some measurable starting point and assessment point that is agreed upon
This is an insult to the Pez community

Monsterlover

#6
September 21, 2011, 09:43:32 AM
Good call.
"The Vincent was like a bullet that went straight; the Ducati is like the magic bullet in Dallas that went sideways and hit JFK and the Governor of Texas at the same time."--HST    **"A man who works with his hands is a laborer.  A man who works with his hands and his brain is a craftsman.  A man who works with his hands, brains, and heart is an artist."  -Louis Nizer**

stopintime

#7
September 21, 2011, 12:27:03 PM
Often, a higher price means better quality....

Consulting is always expensive, because it's a quality demand they can't meet themselves.

Is there a really good reason why you're not worth $ 150? (other than modesty)

Either that or a success bonus. If it was me, being asked and being confident, I'd try to get both.

[thumbsup]
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Popeye the Sailor

#8
September 21, 2011, 12:32:11 PM
$100/hr.

You're saving them a small fortune forever. Totally worth it. Sell yourself.
If the state had not cut funding for the mental institutions, this project could never have happened.

Monsterlover

#9
September 21, 2011, 12:38:04 PM
Quote from: peeny on September 21, 2011, 12:32:11 PM
$100/hr.

You're saving them a small fortune forever. Totally worth it. Sell yourself.

I'm getting ready to email them now.

That's the price I'm quoting.
"The Vincent was like a bullet that went straight; the Ducati is like the magic bullet in Dallas that went sideways and hit JFK and the Governor of Texas at the same time."--HST    **"A man who works with his hands is a laborer.  A man who works with his hands and his brain is a craftsman.  A man who works with his hands, brains, and heart is an artist."  -Louis Nizer**

Stella

#10
September 21, 2011, 01:04:06 PM
Approved.

[thumbsup]

Good luck!
"To enjoy the flavor of life, take big bites." ~ Robert Heinlein

ZLTFUL

#11
September 21, 2011, 02:53:38 PM
I know IT is a different world but I get $75/hr for direct consulting work.
I will go as low as $55/hr if there is a performance based bonus invlved but the bonus has to be decent.
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duccarlos

#12
September 21, 2011, 03:04:45 PM
At least $70/hr not including performance bonus.

+1 on the SOW
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Monsterlover

#13
September 21, 2011, 03:18:04 PM
Sow?
"The Vincent was like a bullet that went straight; the Ducati is like the magic bullet in Dallas that went sideways and hit JFK and the Governor of Texas at the same time."--HST    **"A man who works with his hands is a laborer.  A man who works with his hands and his brain is a craftsman.  A man who works with his hands, brains, and heart is an artist."  -Louis Nizer**

Oldfisti

#14
September 21, 2011, 04:02:51 PM
Quote from: Monsterlover on September 21, 2011, 03:18:04 PM
Sow?


Quote from: RAT900 on September 21, 2011, 08:49:35 AM
My plumber in Asheville gets 90 an hour...go from there

Also you may want to draft a SOW scope/statement of work or something
or work per diem or per hour with a published rate

so you don't get sucked into the black hole of un-billable ad hoc assistance

if you want a cut of the improvement in savings to them define some measurable starting point and assessment point that is agreed upon


;)
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