Rates
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- Written by Dan Warner
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Consulting Rates
Rates are highly dependent on the client and terms of the consulting agreement. A brief meeting over coffee isn't likely to cost you anything, and long term arrangements cost less than short term workshops. The rates directly reflect the risk and rewards of the relationship with our clients and length of engagement.
One of the great lessons that Internet commerce has taught the business world is that providing finance to customers is unnecessary. Most Internet businesses are paid in advance or at the time of delivery. This model of finance dramatically decreases their credit risk and allows them to focus on their business performance. Most businesses are not financial in nature. Providing finance to their clients is outside of their service offering, which creates monumental risk and cash flow issues for their businesses.
Secondary to the upfront financing of clients, the biggest risk to profitability is the discounting that customers try to obtain in return for a promise of purchasing more products or services from a business in the future. This can be genuine and discounting for a substantial volume of business or products is reasonable - but actions speak louder than words.
We appreciate the cash flow, flexibility, and purchasing needs of our clients. We have designed our rates to reflect their needs, and reward them when our risk and increased engagement improves our efficiency as a consultancy.
Adhoc Consulting -
- Initial Discussion: no charge
- Minimum Engagement: 2 days
- Payment Terms: in advance
- Timing: as required, prepaid hours are not required to be sequential
Time Equivalents |
Hours |
Hourly |
Total |
Quarter |
500 |
$150 |
$75,000 |
Month |
160 |
$180 |
$28,800 |
Week |
40 |
$210 |
$8,400 |
Day |
8 |
$280 |
$2,240 |
Contracted Consulting -
- Initial Discussion: no charge
- Minimum Engagement: 4 weeks
- Payment Terms: monthly two weeks in arrears, two weeks in advance
- Rates: negotiated retainer, day rate, and performance bonuses
- Timing: Calendar, or minimum use of hours
Expenses -
- General expenses are paid in arrears and billed at cost plus an 8% administration fee
- Travel expenses prepaid by client, consultants fly in premium economy or higher for flights over six hours
- Hotels four star or above
- Meals and other daily expenses are calculated at the Australian Tax Office standard rates