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Friday, June 30, 2006

IT Consulting Rates: What Should You Charge?

Your IT consulting rates will differ based on your location. If you're in the United States you can probably charge a different rate from companies in New Zealand. At the same time, though, you may have to lower your rates if you live in a small town.

Sweet spot clients are generally willing to pay anywhere from $75 per hour to $125 per hour or more depending on your location and their budget. Micro small businesses, though, often don't want to pay more than $25 or $50 per hour.

Now, $50 per hour may sound good, but in reality you can't make the change from a full-time job with benefits to running your own computer consulting firm on $50 per hour. With all the taxes and other expenses you will have, it's just not feasible.

The best way to determine what to charge is to calculate exactly how much you need to pay all your expenses plus taxes and start calculating your rate from that point. You'll also need to consider how much the companies you are working with are willing to pay.

Learn more about setting your rates in the full article (link above).

Added by Computer Consulting Kit