Do I Know What to Charge as an IT Consultant? - Spiceworks ...

How Do I Know What to Charge as an IT Consultant?http://www.experts-exchange.com/ITPro/Consulting/A_1905-How-Do-I-Know-What-to-Ch...Page 4 of 134/3/2012consider that top talent would want and need to make more, you can expect that rate to jump evenhigher - $150 to $200 per hour.A GOOD consultant will provide you service and advice, indeed a GOOD consultant should be yourtrusted adviser in matters of technology. Keep in mind, a GOOD consultant:• Can provide buying advice to ensure you purchase the correct equipment. Too often, I comeacross clients who have gone out to the local computer store or electronics department store andpurchased an on-sale computer, only to discover it didn't come with the appropriate software andoperating system to work on their network. Now the client is stuck purchasing new software andlosing valuable time installing and configuring it.• Has experience (in most cases) troubleshooting similar systems - and experience will lead to afaster resolution in most cases. Faster resolutions mean lower costs.• Has the training and practice to ensure they setup your system correct the first time. This meansfaster implementations which means fewer hours which means lower costs and lost productivity.• By keeping current on new technologies can spot products and services that can improve howyour business works, enable you to do things easier and possibly in new ways that can ultimatelylead to greater income for your business.• Helps keep your costs low even with a high hourly rate; costs should NOT be measured by thecheck you issue alone. Keep in mind that each hour your system is down is an hour of potentiallylost productivity. It could be costing you sales or at the very least, keeping your workers (who youare paying) from doing their jobs.• Insists you properly license your software. Improper software licensing (piracy) can becomeVERY expensive. Software publishers actively advertise rewards for leads to businesses violatingsoftware licensing. Your employees may like you today... but if you ever have to terminate anemployee, that employee could report you. And the fines can be as much as $10,000 per illegalinstallation (maybe more). Sure, it's cheaper to buy one copy of office and install it on 5computers... UNTIL you get reported... then that $350 product could become a $40,350 product...instead of the $1,750 it should have been.And if you're an IT consultant who is NOT charging comparable rates, consider what it is costing youin terms of your ability to grow and support yourself and your family - now or when you have one.Consider what could happen if you make one critical mistake and get sued and don't have Errors andOmissions (E&O) insurance. Or what could happen if you are audited. Or what could happen if youlose one of your larger clients - possible through no fault of your own - such as they go bankrupt.Consultants charging less are working in a house of cards that could collapse on themselves and theirclients with no notice.