Showing posts with label Rates. Show all posts
Showing posts with label Rates. Show all posts

Consulting Rates - Can I Charge Premium Rates?


Consulting rates are difficult to set and everyone wants to charge premium rates but wonders if clients will pay. The bottom line is that if you providing premium services you should be charging premium consulting rates.







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Consulting Rate, Consulting Rates, Consulting-Rate, Consulting-Rates







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Consulting rates vary from business to business. Some people start up their own computer consulting business right out of school. Others have worked in the industry for many years before deciding to head out on their own. The reality is, not all computer consulting businesses are alike and not all consulting rates are alike either - their owners have different skills sets and experience levels.

Some owners of computer consulting businesses have bachelors degrees, some don't. Some have years of experience, other's don't. Some are in their 20's, some are in their 60's. Given this disparity, the question that begs to be answered is, "How do I know if customers will pay premium consulting rates for my services?

Qualifications, Experience and Consulting Rates

The simple answer to the question is this: If you have decent people skills and decent technical skills, if you can do the job and be an asset as an IT person for a sweet spot small business, then your age, experience, or education should not hold you back from charging consulting rates at the top of the market.

The flip side of this is also true. If you are starting your business in your 50s or 60s and doing this as a second job or as a change in careers, don't let that hold you back from setting premium consulting rates. Your age, experience, and whether you have a degree should have absolutely nothing to do with it - your competency is the most important factor.

The Bottom Line on Consulting Rates

The core issue with setting your consulting rate is whether your computer consulting business provides value to the client. Do you provide something that they can't do themselves? Do you help them to be more productive? Do you help them get more done in a week? Do you help them cut expenses? If your answers are "yes" then you have every right to be charging premium consulting rates for the services you provide.

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Entering Business Aviation: Pay Rates for Flight Attendants


Pay scales in business aviation vary widely compared to commercial carriers. Overall, the field is much more lucrative if you are willing to work hard and keep your options open.







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business aviation, corporate aviation, corporate flight attendant, private flight attendant







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Pay. You know that aviation pays better than commercial, in most cases a lot better, but you aren't sure what the going rate is for a corporate flight attendant. It might surprise you to learn that pay rates vary widely depending on the type of account, your location, your responsibilities, experience, and more.

Over the years I have discovered that the pay range is not set in stone. Typically, fractionals pay less than charter operators [Part 135] who pay less than owner accounts [Part 91]. Are there exceptions to this rule? Of course. Other factors as mentioned above can play a significant role in determining what you will make. These include:

* Location: business flight attendants based closer to major metropolitan areas command the highest salaries. New York and Los Angeles are the two most trafficked areas for private flying. Between corporate moguls and Hollywood celebrities, the two metropolitan areas produce some of the most significant amounts of flying in business aviation. If you are located in Pocatello or Burlington the chances of you finding work in the first place are remote, unless a fractional operator hires you and allows you to airline to reposition for your flight.

* Responsibilities: So, what are you? Will you be treated as a passenger who serves other passengers or will you be expected to manage the entire cabin from the cockpit door on back? Is there a difference in service? Yes, but in the perception of the company doing the hiring there may not be. The written job description may differ from what the job actually requires. It may take several interviews for you to find out if the company places value on your culinary expertise, your safety training, your related job experience, etc. Generally, those companies looking for someone with "no experience necessary, will train" will pay less than those who state they want an employee who is up to date with their training and has flown for a number of years.

Other questions to keep in mind: How often will you be flying? Will you be flying between set cities or traveling internationally? How may days per month? How many soft days v. hard days will you have per month? Will you be on call? Will you be expected to work in the office on days off? Will you be expected to "look after" children a/k/a play the nanny role when not flying? Will you be supervising other flight attendants?

* Experience: The more experience flying corporate, the better. Companies should reward you based on your business flying background, safety and security training, culinary expertise, world languages if flying internationally, management skills, people skills, etc. Some companies require that you act as a personal assistant to the CEO. Extra compensation should be expected for these additional responsibilities.

So, what is the pay range? These figures are not absolute, but the U.S. salaries that I have heard for corporate flight attendants falls into three general categories. These are some generalized salary ranges:

* Fractionals: 33K to 43K, corporate experience not always required. These companies will train you to their specifications. One of the big pluses for fractionals is that you can live mostly anywhere; at least one company will allow you to airline to meet up with the aircraft [they also let you accumulate and keep your airliner miles].

* Charter: 45K to 75K, depending on location of aircraft and your experience. Much of what I've heard as the quoted salary is in the low to mid-50s range. Indeed, the NBAA supports this data with a recent survey showing that the average corporate flight attendant is paid just over 53K per year.

* Owner: 25K to 100K+. Let's not kid ourselves. There are companies that will expect you to jump through hoops to fly on their aircraft and for peanuts [and you know they don't serve peanuts to their passengers!] On the other hand, if you are a chief flight attendant your salary will probably start at 75K and can easily exceed 90K. The higher salary can be expected when you have a "VP" title and be in charge of several flight attendants. Oh, by the way, don't forget that you will be flying in addition to your office duties... guess who has to cover for sick employees when no one else can be found?

100K+?! Let's just say that this amount is unusual, but I did confirm 110K for one flight attendant flying internationally some time back. Generally, never expect anyone to reveal their salary to you... why should they?

What about flying contract? Wow... you had to ask. If I told you that you can expect an average of $300. - $350. per day plus per diem would that suit you? The amounts being paid for contractors vary just as widely as they do for full time flight attendants. I have heard of flight attendants flying for $0 just to get the experience and hours [how could a company conscientiously allow that to happen? Okay, stupid question!] I've also heard of a flight attendant making $600 per day flying internationally. Contract rates vary widely and depend, again, on your location, responsibilities, experience, etc.

Questions to ask yourself:

* What am I worth? If you think that the job merits 60K per year, then you need to make a case for earning 60K per year. If the company insists on paying 35K, guess what? You won't make anything near 60K, you'll be crossed off their list and the person settling for 35K will get the job.

* What will I settle for? Can I justify the lower salary just to get some work? If I have flown for years and are willing to take a 20-25K pay cut, will I be able to live on the lower salary? Can I expect to renegotiate my salary once hired [don't make me laugh...]?

* What benefits can I expect? 401(k), medical, dental, vacation, sick/personal days, and the like are some of the expected benefits when working full time. Other considerations: do they pay for uniforms? Is there a uniform allowance? What about salary reviews/job performance reviews? Is there room for promotion? Can I ever transfer to another account? Will they pay for my training? What is their policy on job termination/severance? Is this a family friendly environment?

The more you know about your needs, wants, and desires before you are interviewed, the better opportunity you will have to be adequately compensated. Find out what is important to you: i.e., lower salary v. living where I want; job security v. higher pay; public visibility v. anonymity, etc. Stick with your principles and act upon them while negotiating your next position. One final question to ask yourself once a job offer has been tendered: can I live with myself if I accept this position?

Consulting Salary - Are Your Rates Salary Equivalent?


Consulting salaries are very closely related to the hourly billing rates that you charge. Before you launch your business you need to make sure that your total revenue will allow to pay your self, and any future employees, an attractive and competitive consulting salary.







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Consulting Salary, Consulting-Salary







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Consulting salaries are very closely related to the hourly billing rates that you charge and the salaried equivalents that you can afford to pay both yourself and others down the road. The consulting salary you expect must be affordable given your hourly billing rates. This consulting salary must also be enough to attract sales and technical staff as your business scales up. If you don't set your rates at an appropriate level then you won't be able to offer competitive salaries to future employees and your business growth will falter.

The Consulting Salary Equivalent of $75 an hour

$75 per hour sounds like an attractive rate. Most people will equate it with a yearly consulting salary close to $150,000. The assumptions are that there is little overhead and people with their own businesses hardly pay any taxes.

Unfortunately, figuring out a consulting salary is not that simple. You need to remember that you'll only be able to bill out about 75% of your week. This takes you from a starting place of a $150k consulting salary to $112k per year. That still doesn't sound bad though, right?

There’s still something you're missing here. It's called the Triple Billing Rule.

Triple Billing Rule

Your overall revenue is actually split into three. 1/3 goes to sales and marketing, 1/3 goes to taxes, insurance, fringe benefits and other overhead items. The final 1/3 goes toward a consulting salary. If we take our $75 per hour scenario, suddenly we have a maximum consulting salary of $49,500 but we haven't accounted for the other business expenses that come out the final third.

When you look at consulting salaries realistically it is easy to see how setting billing rates is very complex. Your rate has to be high enough to pay yourself or a contractor/employee a decent consulting salary but not so high that it impedes finding clients.

The Bottom Line on Consulting Salaries

Consulting salaries come out of the final third of overall consulting revenue: marketing, sales, taxes, insurance, and administration all take precedence. When you start a computer consulting business it is important that you are able to pay yourself a consulting salary that is equivalent to what you would expect to make working for someone else. You may be an employer someday and you want to make sure the consulting salary you offer will be sufficient to attract the talent you are looking for.

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Consulting Rates - What Are My Competitors Charging?


Consulting rates of your competitors provide an excellent starting point for your own billing rate analysis. Use your network to find out what your competitors are charging and use that information to strategically position your own consulting rate.







Keywords:



Consulting Rates, Consulting-Rates







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Consulting rates of your competitors provide an excellent starting point for your own billing rate analysis. If you know you competitor's consulting rates you can analyze various rate scenarios within a tighter range. You don't want to under or over price your own services and this information gives you valuable insight into what your target clients are currently willing to pay.

Techniques For Competitor Sleuthing

If you have friends or acquaintances that are niche technology providers, ask them what the going consulting rates are
Ask business partners, accountants and management consultants what consulting rate their clients pay
When you go to user group meetings, inquire about the going consulting rate in the area
Try to access government bid information - the consulting rates will be quoted
Look through old paperwork supplied by your clients and see if there is any mention of the consulting rate - purchase history, work billed, etc...

The Bottom Line on Consulting Rates

Setting your consulting rate requires knowledge. You have to know what your services are worth in the market. The best way to do this is to find out what your competitors' consulting rates are. Get creative: use your network, don't be shy about asking people outright, and do some snooping. Once you know the going rates in your area it is much easier for you to strategically position your own consulting rate.

Copyright MMI-MMVI, Computer Consulting 101. All Worldwide Rights Reserved. {Attention Publishers: Live hyperlink in author resource box required for copyright compliance}