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Monday, March 26, 2007

Hourly Rates and Your Competitors' Prices -- An Introduction

As a responsible IT consultant, you need to be aware of the hourly rates of your competitors in order to set a good hourly rate for your business. This means you have to know what low-end IT consultants are charging and the hourly rates of sweet spot clients like you.

Hourly Rates of Low-Cost, High-Volume IT Consultants

You don’t really want to compete with the hourly rates of low-margin IT consultants, but you should know them. Knowing the hourly rates of this group of consultants can help you get distance from it. Don’t cheat yourself out of getting your desired sweet spot clients by positioning yourself with the low-end group.

In order to figure out hourly rates for this low-end group you can use the following options: find websites by googling your city, state, province, etc. and type in keywords that fit these types of businesses; look in consumer-directed advertising including fliers, leaflets, coupon packs, etc. The hourly rates you find here will tell you what being too cheap means and help you avoid attracting price-focused clients.

The Next Step for Hourly Rates

Determining the hourly rates of low-end IT consultants is just the first step in setting the rates for your own business. The next step is looking at the hourly rates of the clients that look for sweet spot clients in your area and setting up competitive rates. But make sure you avoid attracting price-centric clients by first looking at the hourly rates of high volume IT consultants.

Created By: Joshua Feinberg