The world of business is changing. The old maxim, “You get what you pay for,” doesn’t apply to consulting work anymore. What does? Well, it’s complicated. But here are some basic tips to help you negotiate your hourly consulting rate and take advantage of this new era in the global economy.
Download the Ultimate Consulting Business Plan Template
6-FIGURE CONSULTING BUSINESS BLUEPRINT
Learn how to land more clients, increase your fees and win more proposals with the free 47-page blueprint from Consulting Success
We partnered with Consulting Success to get you access to this amazing FREE resource:
Get the Free Blueprint Here >>Before delving into what factors influence consulting fee structures, it’s helpful to understand the different pricing strategies that are typically used:
Determining the best consulting fee structure for your business will depend on a number of factors, including the type of consulting services you offer, your business model, and your target market. Your fee structure is important to understand when using a business plan template to complete the financial projections of your consulting business plan.
For example, a consultant who specializes in short-term projects and offers a fixed fee for services may be more successful than one who charges by the hour. On the other hand, a consultant who provides ongoing monthly services may want to bill on a monthly retainer.
Create a winning business plan quickly & easily with Growthink’s Ultimate Consulting Business Plan Template. Complete your business plan and financial model in hours.
There are many factors that can influence the hourly consulting rate a consultant charges for their services. Some of these include:
Now that you understand some of the factors that influence average consulting fees, let’s take a look at some averages by industry. Keep in mind that these are just average hourly consulting rates.
Consulting fees vary drastically by industry, and it would be impossible to list an average hourly rate for every industry. However, some general averages can be provided. The table below lists the average consulting hourly rate by industry.
| Industry | Hourly Fee |
|---|---|
| Management Consultant | $200 – $375 per hour |
| IT Consultant | $100 – $250 per hour |
| Real Estate Consultant | $125 – $300 per hour |
| Environmental Consultant | $200 – $375 per hour |
| Cybersecurity Consultant | $225 – $400 per hour |
| Human Resources (HR) Consultant | $150 – $350 per hour |
| Scientific & Economic Consultant | $250 – $500 per hour |
| E-Discovery Consultant | $115 – $315 per hour |
| Expert Witness Consultant | $300 – $500 per hour |
| Risk Management Consultant | $115 – $315 per hour |
| Distribution & Logistics Consultant | $150 – $350 per hour |
| Energy & Utility Consultant | $100 – $300 per hour |
| Pharmaceutical Consultant | $110 – $310 per hour |
| Healthcare Consultant | $120 – $320 per hour |
| Software Consultant | $150 – $350 per hour |
| Third-Party Logistics (3PL) Consultant | $100 – $300 per hour |
As you can see, the average hourly rate varies widely by industry. However, the table provides a general idea of the ranges that can be expected.
Now that you have a better understanding of what factors influence consulting rates, how can you go about pricing your services?
The most important thing is to be realistic about what you’re worth and to price your services accordingly. Don’t sell yourself short, but don’t overprice your services either.
When consultants set their hourly consulting rates, it’s important to consider the following:
If you’re just starting out, it’s generally recommended to charge a lower rate until you build up your experience and expertise. You can always increase your rate later as you become more established.
Even the best consultants can occasionally experience a lull in business and may need to lower their rate temporarily. However, you don’t want to price yourself out of potential work. If a client requests an hourly rate that’s below your normal fee, it’s important to be flexible and negotiate.
There are a few things you can do to increase your chances of success when negotiating your consulting rate:
By following these tips, you’ll be able to negotiate consulting rates that work for both you and the client.
Create a winning business plan quickly & easily with Growthink’s Ultimate Consulting Business Plan Template. Complete your business plan and financial model in hours.