There are many different IT consulting rates.  Some people decide to charge zero, others go for $25, $35 or $45 per hour.  What is the best IT consulting rate for you?

Startup and Rates

If you want to set a good standard for yourself, your future clients and your business, your starting IT consulting rates should be around $75 - $95 per hour.  Setting high rates for yourself will build a reputation for your IT consulting business and help you attract the best clients.

IT consulting businesses that work with small companies typically charge $100 - $125 per hour.  The rate is determined by how deep their specialty is, their vertical industry and their metro area.  

How Do You Adjust IT Consulting Rates?

New IT consulting businesses often don’t accurately think about their expenses and end up charging too little for their IT consulting services.  Usually, if you start out really low, you will have to stay really low.  Adjusting IT consulting rates late in the game is nearly impossible.  Your last resort is fixing rates going forward and getting new clients, keeping a lot of old ones that are paying you way too little.

Raising Rates is a Challenge

When you grandfather rates, half or at the very least one quarter of your IT consulting business will be useless because it will not be earning you any money.  Getting clients to agree to huge rate increases – possibly increases of 100 percent or even more – is an impossibility.  

The Main Idea About IT Consulting Startup Rates

When you are starting your business, don’t charge too little or you will have to totally ditch your IT consulting client list later and start over, possibly putting you out of business.  Set rates appropriately from the beginning to attract the best clients and get the most out of your company.

Blogged By:  Joshua Feinberg