"What is your rate?"
As business consultants, we hear this question all the time. Being able to answer it effectively and with confidence is critical to the success of your consulting practice. In this course, I'll show you best practices for establishing rates for your consulting services and solutions...rates that reflect your costs and market value.
I'll also show you how to organize your rates into a Rate Card (or Rate Sheet) that you can later use to streamline the process of quoting prices and writing proposals. I'll provide you with a Rate Card template that you can apply to your business and demonstrate the process step-by-step, using real examples from my own rate cards.
We'll also explore solution-based pricing, a technique that more and more consulting firms are embracing. Even if you choose not to use it for your pricing, you should at least be familiar with what your competitors are doing.
Who should take this course?
If you're a business consultant who wants to take your consulting practice to the next level, you've come to the right place. I'll share my pricing system with you...a system like the ones used by the big consulting firms. Learning how to price like a pro will help you grow your consulting practice and turn it into a serious business.
Ideally, you'll take this course after getting comfortable with your finances--it's important to understand your costs--and researching your marketplace. When you understand the market and your value within it, you're in a much better place to establish your rate structure.
What do you get?
In addition to the Rate Card template, this course includes a printable Workbook (PDF) and 1.5 hours of videos, mashups, and screencasts.
Enroll and take one step closer towards having the consulting practice you've always wanted.
Welcome to the Setting Your Rate Card course, part of my Pricing Your Services series on Udemy. In this video, I introduce the course content and objectives.
You can download the Workbook (PDF) for this course, save it, print it, and use it as a companion to the videos. Please do not reproduce or distribute this material.
You can download the Toolkit for this course, which contains a Rate Card template that you can use for your consulting business. You can use it as you like and modify it to fit your needs, but please do not distribute the tool to others.
"What's your rate?" When you're a business consultant, you get this question a lot. Being able to answer it effectively and with confidence is a critical success factor for your consulting practice. In this video, I discuss why that is.
In this interview excerpt, freelance graphic designer Belen Bilgic-Schneider shares her perspective on rate structures.
Are you ready to set rates?
Know Thy Self: Ideally, you've spent some time getting to know your costs, so you know how much revenue you need to generate in order to cover your business costs and leave you enough to cover your personal costs.
Know Thy Market: In addition, rate setting is easier once you've done some research on the marketplace. It's important to know what's happening with your clients (or target market), their industries, your competitors, and the broader economy.
Know Thy Value: Lastly, since price is a reflection of your value in the marketplace, you should ideally have a clear sense of your value unique proposition.
Equipped with insight into your own finances, the marketplace, and your value, you'll be able to make smarter pricing decisions. Big consulting firms have teams of people figuring these things out, but you'll need to hack at it on your own.
Here we contrast hourly rates and day rates, the two most common rate structures for business consultants.
When pricing larger engagements, it's not unusual for consultants to extend hybrid or project rates that simplify pricing.
With larger engagements, you'll often be pricing your services based on deliverables, rather than purely on an hourly basis.
Here I share examples of how hourly rates are organized in my rate cards.
Here I share examples of deliverable rates from one of my rate cards.
In this interview excerpt, consultant Rich Waite shares his perspective on discounting rates.
Here I introduce you to a Rate Sheet (or Rate Card) template that you can use and walk you through its basic structure.
In this screencast, I demonstrate how to establish your Target Rate for any employees you have, or plan to have.
In this screencast, I demonstrate how to figure out your Target Rates for contractors.
Once you've established your target rate for a given role, consider the target rate for the junior and senior roles within that role family. In this screencast, I demonstrate how.
Once you have target rates set, consider what your minimum rates are going to be. As you engage in larger and larger deal, you'll find yourself discounting your rates more and more. Establishing a floor helps you make sure you don't get carried away with your discounting. In this screencast, I show you how.
If you work with contractors and vendor-partners, you can sometimes negotiate better rates when buying their services in bulk. Here we explore how that can work as it relates to your minimum rates.
In this screencast, we come up with possible discounted rates. Establishing them now will save you time later, when you are pricing projects. It's also helpful to work them out while this topic is fresh in your mind.
In this screencast, we continue exploring discounted rates.
In this interview excerpt, David Manning, Managing Partner of PDG, a US consultancy, shares his thoughts on pricing.
Here I discuss what solution-based pricing is and what the basic elements of it are.
Here we look at a process for developing solution-based pricing.
Here we continue to look a process for creating solution-based pricing.
Here I share an example of solution-based pricing from one of my rate cards.
Here we look at another example of solution-based pricing.
Here I discuss the importance of validating your solution and solution-based pricing by sharing it with others and getting feedback.
Try this brief quiz and see how much you've learned and retained. If you struggle to answer some of these questions, please go back and review the appropriate lecture.
Take what you've learned and apply it to your business, then go ahead and post your reflections here.
Let's revisit the Pricing Your Services journey and see what could potentially be next for you as you put your pricing system in place.
Here are coupon links to help you save on other Pricing Your Services courses.
Gus has run his own talent development consulting practice for over 20 years and has worked with hundreds of client organizations ranging from pharmaceutical and consumer healthcare product companies to brokerage, banks, and insurance companies, from IT startups to long-established telecommunications service providers as well as law firms, retailers, hospital systems, and chemical manufacturers. His proposals have won—and lost—multi-million dollar deals as well as much smaller ones.
He has earned a PhD in Education with a minor in Leadership, an MBA, and a BS in Marketing as well as a Certified Performance Technologist designation. He has taught Masters-level elearning design courses and frequently delivers live and virtual workshops for leaders at all levels. He regularly presents at industry conferences and is a recognized thought leader in the talent development industry. His passion, though, is mentoring colleagues and fellow consultants as they launch and expand their businesses. Over the years, he has counseled hundreds of business consultants and budding entrepreneurs.