What to charge - an email exchange

I get emails from consultants and would-be consultants all the time. Here is an email conversation I had with someone recently about knowing what to charge.

An email from Franco

It begins with this guy (let's call him Franco), subscribing to my ezine. I always let people know with an email that goes a little like this:

Franco,

I have added you to my ezine list, as requested.

You can see the most recent one here:

ezine_current.htm

I'd be curious to know what prompted you to subscribe - what specifically were you looking for? And also what brought you to my site in the first place!

c

Franco replied, as people often do:

From: Franco

Sent: Thursday, 17 May 2007 2:11 PM

Subject: Re: Thanks for subscribing

Hi Cindy,

Thanks for the email.

I am in the process of setting up my own contractor/consulting company in an engineering field. Ironically, I had not seen your site, but happened to come across it today when I was looking for timesheet templates and the like. Your site is very good actually, so congratulations on that.

Do you have any information on modern day marketing, i.e., promoting one's business via a web site ? Information on domain names vs business names for a web presence, and the importance (or otherwise) of the hosting location?

I intend to make my business an almost paperless one, so everything will be in spreadsheets, word documents, PDF files and all correspondence, invoicing etc. to be done via email. I don't know if this is unrealisitic, but that's my aim. A lot of the literature I have read (other sources, not your web site) on consulting is quite old-fashioned in this regard (still talking about letters, staionery letterhead etc.).

Cheers,

Franco....

Now part of the reason I wrote the first book (The Consultant's Guide) was to put all of this information in one place, keep that updated, and not have to answer these questions all the time. But I am feeling generous on this day, so...

> ----Original Message Follows----

To: 'Franco

Subject: RE: Thanks for subscribing

Date: Thu, 17 May 2007 23:35:26 +1000

Franco,

Thanks for the feedback on the website!

I cover some of that in my Australian Consultant's Guide ($35) which was last updated in November 2006. You will find some great info on web stuff free through people like paypal and also try raintoday.com

c

So Franco comes back, this time for more free info:

-----Original Message-----

From: Franco

Sent: Friday, 18 May 2007 5:17 PM

To: cindy@cindytonkin.com

Subject: RE: Thanks for subscribing

Thanks Cindy, much appreciated. I will have a look at your book when I get

a minute.

Can you tell me your opinion on the following .... in your opinion, what is the definition of a "short-term" vs a "long-term" contract for consulting/contracting work ?  

Cheers,

Franco....

---- Original Message -----

To: 'Franco

Sent: Friday, May 18, 2007 5:51 PM

Hah, that depends what you work in.

For me, 3 months is Long Term, but I'd never take a 3 month job.

For many people I know 2 years is long term.

Depends on the work you do, the rate you charge and what kinds of work you're used to taking on!! That's a how long is a piece of string question.

c

-----Original Message-----
Sent: Saturday, 19 May 2007 4:22 PM

Good answer !! I'm in the engineering field (specialising in lightning protection).

I guess if you multiply out a typical hourly rate in my field by the number of hours in 3 months, the fee would be quite huge and hence requires a discount. I was trying to get a feel for the breakpoint period where that sort of treatment kicks in.

Franco...

Sent: Sunday, 20 May 2007 9:08 AM
To: 'Franco
Subject: RE: Thanks for subscribing

Franco, You need to buy the book! But the short answer to the actual question you were asking (which is not the question you asked, btw), is some people say "don't discount". Alan Weiss (alanweiss.com I think), says find the value, and price against it on an ROI basis, and do large amount fixed price jobs. In the past when I did big jobs I discounted, but do it based on your cash flow needs, not on what you hallucinate the client thinks is value.

When I first started I took whatever agents offered me, and more or less charged clients what agents were charging for me. Now I have a steady stream of clients who trust me I basically fix my own prices, based on, amongst other things, whether I think the client is my ideal client or not (i.e. if they are going to be a pain in the neck, they pay double). Sometimes they do pay double. I have been working for myself since 1992, so I've managed to amass some resilience.... and I've paid off my mortgage so less pressure!

C

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