How to charge for consultancy?

K

Kerak

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Currently getting a good hourly rate and expenses, but now doing more and more for the client. Should I get a contract? Should I get a retainer and charge lower hourly rate? I dont want to price my self out of what could be 2-3 years well paid work, but nor do I want to put all my eggs in one basket.

Advice and or comments appriecated
 
Kerak,

More detail required, what type of industry, how large are the company for which you are carrying out the consultancy etc, difficult to comment on such a broad question, add some specifics and posters will no doubt provide some oppinions!

Regards

Ikeano
 
Ok more detail, I provided 3-6 hours per month advice and documentation review in health and safety for this client. I had numerous clients getting the same service. Now I am doing 30-40 hours per week for the one client, and Im not seeking other clients.
We get on very well and its encouraging to see ones service appriceated. Projects worth 11-30million, and will span 18months. I have a budget, expenses and an hourly rate worth 2.5k per week. My questions are

Should I have a contract?
Should I have a retainer and lower hourly rate?

I carry my insurance and office costs, while travel is billed to the client.

view, comments welcom
 
Kerak said:
I had numerous clients getting the same service. Now I am doing 30-40 hours per week for the one client, and Im not seeking other clients.
Click to expand...
Beware of the old Dunnes Stores supplier management practice of building up the business given to the supplier until they have that supplier by the short & curlies, at which time the buyer starts dramatically changing the terms of the agreement and the supplier has little option but to agree. Having 2-3 good clients would leave you in a much more resilient position.
 
Kerak,

The situation you describe looks much more like an employment than a self employment, what kind of tax arrangements are in place?

I would agree with Rainydays sentiments that over reliance on any one client is a bad thing despite how financially beneficial it may be. You are currently doing 30-40 hours per week, what is your weekly capacity, if you have an additional say ten hours why not seek other clients to utilise your additional capacity, remember when this contract comes to an end you will still have to maintain your business, and over reliance on one company for such a long period may damage your ability to do so.

With regard to the requirement for a contract, what is the industry norm ? do you want to be tied into a contract with this company, this situation is defined by your need to maintain other clients if you wish to remain self employed.


Regards,

Ikeano
 
Thanks so far,


The tax suitation, Im self emplyed and resposabile for my own returns. and the benfits of this greatly outway returning to the PAYE sector.

been tied to the one client v maintaining a broader base, hmm I agree over relience is dangerous but the finanical return and experience gained out weight the down side ( for now).

Plus (and to me at the moment) Im enjoying what im doing!

just need to justfy the need for broadband in my office:D
 
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