|
[EDI-L Mailing List Archive Home]
[Message List]
[Reply To This Message]
Re: Advise on Consultant Rate
Are you asking whether the hourly rate in your contract is OK? 'Cause, if
you don't have a contract with a rate in it -- or better yet, the first
one-third of the money -- you don't yet have an "award."
That said, Infoworld's new, 2004 annual salary survey is at
http://www.infoworld.com/article/04/06/11/24FEcompsurv_1.html?s=feature.
Note that the numbers there are salary, not annualized consulting rates. So
they are on a W-2 basis (the employee doesn't pay the employer portion of
the payroll taxes), imply the usual benefits, and assume that the check
arrives every week without you taking your (unpaid) time to sell your
service every couple of months.
If you have a credible record of delivering the relevant technology, and if
you find jobs yourself rather than let a body shop find jobs for you, you
should expect to make about 2x the salary-equivalent amount. For example,
if the going salary for the job is $100,000 per year, you should expect
$200,000 per year / 2,000 hours per year = $100 per hour. That is on a W-2
basis; if you are on a 1099 basis (you pay the payroll taxes), you need
another 20%, or $120 per hour.
If you work through a body shop on a W-2 basis, expect about a 50% premium
over salary to cover benefits and weeks between jobs. Continuing the
example above, you might expect $100,000 per year / 2,000 hours per year =
$50 per hour, then add the 50% to arrive at $75 per hour. Of course, a real
body shop knows the client, you, and the technology you offer -- a
half-hour "beauty contest" client interview is all it takes if you are
working with a real body shop. Otherwise they are a dating service which
simply matches one or a few keywords between an job description and your
resume, then payrolls you. That's not much value-add by the dating service.
Quiz them thoroughly to see which you are dealing with. Whether body shop
or dating service, expect them to charge the client as much as possible and
pay you as little as possible, which is how any for-profit enterprise works
(including Berry-the-Consultant). They are not in business to look out for
your interests.
Now for the reality check. If you don't have a credible record, you are
going to have to "buy" one by working a few contracts at a rate so low that
it can't be refused. Second, the numbers above are for prompt cash payment,
which a startup may or may not deliver. Finally, there are a host of other
related issues like how unique your skill set is, how badly the client
needs you, how long the job will realistically run, interpersonal chemistry
with the reporting manager, and how badly you need money.
I wish I had a definitive answer for you, but as any consultant will tell
you, "It depends."
Jeff Mick
Sunnyvale, California, USA
At 06:24 AM 6/21/2004, jfktutors wrote:
>I was just awarded an assignment with a startup company. The
>assignment includes EDI setup, logistic compliance, and basic new
>company setup. Can anyone give me an idea on what the hourly rate
>should be? This is my first consultant assignment....80 miles
>roundrip and about 3-4 hours a week. Thanks in advance.
>
>Berry Lamy
|
|
Subscribe in XML format
| RSS 2.0 |
|
| Atom 0.3 |
|
|
Cart
