SETTING AND MAXIMIZING PRICE ON YOUR CONSULTING SERVICES

PANELISTS:

DAN KAMDARILENE BUTKALARRY NAGEL

JIM BOYD

 

MY BACKGROUND 

Dan Kamdar is a president of Affordable Engineering Services. The company is a multi-discipline firm that specializes in Test Engineering, Reliability, Logistics and Quality for Aerospace and Defense applications.  Dan has MSEE and MBA degrees and worked as a Senior Engineering Manager at Boeing for 25 Years.

ANALYSIS OF FEE FOR ALL CONSULTANTS

The table shows the equivalent hourly fees charged by all consultants.

Engineering experience 

Minimum 

Maximum 

Median 

1 to 10 years 

$20/hr 

$175/hr 

$90/hr 

11 to 20 years 

$40/hr 

$320/hr 

$100/hr 

21 to 30 years  

$25/hr 

$2000/hr 

$110/hr 

31 to 40 years 

$31/hr 

$1000/hr 

$120/hr 

Over 40 years 

$45/hr 

$468/hr 

$105/hr 

The following table shows the annual earnings of these consultants.

Engineering experience 

Minimum 

Maximum 

Median 

1 to 10 years 

$3,700 

$1,500,000 

$89,000 

11 to 20 years 

$1,500 

$1,050,000 

$100,000 

21 to 30 years 

$1,000 

$1,200,000 

$100,000 

31 to 40 years 

$7,348 

$1,000,000 

$100,000 

Over 40 years 

$2,009 

$415,500 

$75,000 

WHAT PRICE SHOULD YOU CHARGE?

DATA SOURCES:

(1) ALLIANCE OF IEEE CONSULTANTS NETWORK – JANUARY 2003

SURVEY (2) PROFESSIONAL AND TECHNICAL CONSULTANTS

ASSOCIATION (PATCA) – 1999 SURVEY

SUMMARY:

(1) TYPICAL CONSULTANT HAS A BS (27%), MS (51%) OR A PHD (20%) DEGREE. (2) HOURLY RATE RANGE FROM $35 TO $250 AN HOUR. AVERAGE RATE IS

$98 AN HOUR. CONTRACT ENGINEERS (JOB SHOP) EARN BETWEEN $50 AND $60.

 (3) 80% BILL AS TIME & MATERIAL; 20 % AS A FIRM FIXED PRICE

CONTRACT. (4) 71% WORK FULL TIME AS A CONSULTANT. BALANCE WORK PART

TIME AS A CONSULTANT. (5) 89% OF THE CONSULTANTS HAVE OFFICE IN THE HOME.  (6) 42% CARRY GENERAL LIABILITY INSURANCE. 8% CARRY

PROFESSIONAL LIABILITY.

AGE OF CONSULTANT

HOW LONG AS A CONSULTANT

HOURLY RATE

CONSULTING INCOME

SOURCES OF CONSULTING WORK