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Rising Star
(Desired annual salary/2000) * 2 = Hourly rate (includes extra for benefits, insurance, etc)
I’d calculate break even and derive the minimum rate that make sense. RATE x (number of work days that you want to work - holidays - sickness and lazy days off) = tax - expenses on accountant - pension - insurance - work related expenses (commute, clothes etc) - lunches at work /client entertainment - food - house/mortgage expenses - bills - hobbies - holidays and other entertainment - contingency fund (in case you loose job or something else happens) - other savings
Daily rate = hours worked today * hourly rate
Is this the calculation?
Chief
How much do you want to make, add taxes, expenses, etc, then divide by 1248 (60% use) and you get a rate.
Meaning how much would you ask per day if you were to go freelance? Don’t need to anchor it to actual level and salary, just trying to get general advice on factors you would consider to come up with a number
More important question is what’s it worth to the client?
What if you don’t know yet / 1st time client? But I hear you, Accenture 3
Yeah, I get it. But think about what they might pay another firm for it, or think about the value you’ll create for them. If you have differentiated skills you can price it based on value. If you are doing the same work Accenture would then you’d have to price it lower than Accenture - there’s a premium for firms like Accenture because we are seen as too big to fail - if an individual messes up we’ll make it right at a loss to protect the relationship or not get sued. Contractors can’t do that.