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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

#15
September 21, 2011, 04:19:28 PM
Ahh.

Yep, did that. Laid it all out in the email. Omitting certain important details of course

:)
"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**

ducpainter

#16
September 21, 2011, 05:33:18 PM
Quote from: Monsterlover on 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?
I read exactly 0 replies...

Charge them $100/hour

Remind them what my dad taught me...

cheap is expensive and expensive is cheap.
"Once you accept that a child on the autistic spectrum experiences the world in
 a completely different way than you, you will be open to understand how that
 perspective
    is even more amazing than yours."
    To realize the value of nine  months:
    Ask a mother who gave birth to a stillborn.
"Don't piss off old people The older we get, the less 'Life in Prison' is a deterrent."


Monsterlover

#17
September 21, 2011, 05:52:53 PM
I quoted $100. They don't need reminded what your dad taught you. They know I can produce results. 
"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**

Monsterlover

#19
October 14, 2011, 12:01:22 PM
Just a quick update to this.

I just talked to this company and they approved my $100/hr fee if I work for $75/hr for the first three hours, which I thought was fine.

Sweet!  8)

Thanks everyone for your input.

"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**

ducpainter

#20
October 14, 2011, 01:13:58 PM
Quote from: Monsterlover on October 14, 2011, 12:01:22 PM
Just a quick update to this.

I just talked to this company and they approved my $100/hr fee if I work for $75/hr for the first three hours, which I thought was fine.

Sweet!  8)

Thanks everyone for your input.


Good luck...

My guess is you work 2 1/2 hours.

Call me cynical. :P
"Once you accept that a child on the autistic spectrum experiences the world in
 a completely different way than you, you will be open to understand how that
 perspective
    is even more amazing than yours."
    To realize the value of nine  months:
    Ask a mother who gave birth to a stillborn.
"Don't piss off old people The older we get, the less 'Life in Prison' is a deterrent."


Monsterlover

#21
October 14, 2011, 01:22:16 PM
[laugh]

They need more help than that.  We're probably looking at 10+

They won't skimp, they'll do it right.
"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**

ducpainter

#22
October 14, 2011, 01:33:43 PM
Quote from: Monsterlover on October 14, 2011, 01:22:16 PM
[laugh]

They need more help than that.  We're probably looking at 10+

They won't skimp, they'll do it right.
I just couldn't resist. ;)
"Once you accept that a child on the autistic spectrum experiences the world in
 a completely different way than you, you will be open to understand how that
 perspective
    is even more amazing than yours."
    To realize the value of nine  months:
    Ask a mother who gave birth to a stillborn.
"Don't piss off old people The older we get, the less 'Life in Prison' is a deterrent."


Monsterlover

#23
October 14, 2011, 02:20:51 PM
I know...
"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**

krolik

#24
October 14, 2011, 06:38:57 PM
Quote from: Monsterlover on September 21, 2011, 07:29:28 AM

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


Thoughts?

$11ty billion.
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Quote from: SacDucNo. I'm a different type of idiot altogether.

Monsterlover

#25
January 13, 2012, 10:27:27 AM
Just an update.

I worked with these guys for 18 hours or so over the last couple months.  So far I have cut their part cycle time by 30 seconds which translates to about $5,000 a month in cost savings.

We are waiting on a custom tool to come in (10 week delivery) and once that is in place another 30 second gain may be possible (for another 5k a month)

They are thrilled and so am I because the check just showed up (i wanted to wait until we saw a tangible gain before I billed them) They paid in 30 days which are my standard terms.

I'm going to have them write me a testimonial letter and will offer consulting services as part of my shop's ability.  I don't expect to do it much, but a little extra income will be nice when I can get it.

It's certainly saving our asses this month [laugh]
"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**

DesmoDiva

#26
January 13, 2012, 10:32:59 AM
 [clap] [thumbsup]
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ducatiz

#27
January 13, 2012, 11:11:03 AM
Don't forget you will be liable for income tax, self employment taxes and payroll taxes out of yoru own pocked.

Whatever your tax rate is, double it and add about 5%.  That's what you pay when you are 1099.

$100/hour, and you're in the 25% tax bracket?

double for the payroll tax = 50% + 5%

=$45/hour take home.

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Monsterlover

#28
January 13, 2012, 05:42:49 PM
Quote from: ducatiz on January 13, 2012, 11:11:03 AM
Don't forget you will be liable for income tax, self employment taxes and payroll taxes out of yoru own pocked.

Whatever your tax rate is, double it and add about 5%.  That's what you pay when you are 1099.

$100/hour, and you're in the 25% tax bracket?

double for the payroll tax = 50% + 5%

=$45/hour take home.



Well be a 0% bracket for the next couple years.

I billed them through my company. We lost money last year. Probably wont this year but the company owes me and wife so much that I can draw out the repay for probably two years (instead of taking a salary)

I just turn it all over to my accountant and if I don't understand the numbers I ask questions :)
"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**

The Architect

#29
January 14, 2012, 08:49:10 AM
Quote from: ducatiz on January 13, 2012, 11:11:03 AM
Don't forget you will be liable for income tax, self employment taxes and payroll taxes out of yoru own pocked.

Whatever your tax rate is, double it and add about 5%.  That's what you pay when you are 1099.

$100/hour, and you're in the 25% tax bracket?

double for the payroll tax = 50% + 5%

=$45/hour take home.



It's good to be self employeed.    [bang]
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