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Re: Advise on Consultant Rate
or, as the want ads so aptly put it "DOE" (depends on experience).
Jeff Mick wrote:
>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
>>
>>
>
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>
>.
>Please use the following Message Identifiers as your subject prefix: <SALES>,
<JOBS>, <LIST>, <TECH>, <MISC>, <EVENT>, <OFF-TOPIC>
>Access the list online at: http://groups.yahoo.com/group/EDI-L
>
>Yahoo! Groups Links
>
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--
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Brian Lehrhoff (
Messaging Consultant
201-913-4506
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