General consulting rate question.. let me preface with I know consulting rates are absurdly high from MBB, but if you have left the Firm and are trying to help a company as a consultant to build a strategic plan. How would you go about calculating what hourly rate to charge? Generally I’ve heard take your salary / 52 weeks / 40 hours *~50% markup. So if you were at $100k.. you’d charge $72/hr. Feels very low. Thoughts?

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Posting as :
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Triple it is fairly typical. Profit margin + additional overhead, expenses, etc.

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Pricing strategy should be a function of their inputs (eg, salaries and benefits, overhead, etc) and their desired outputs (eg, gross margin). The approach you describe seems rather arbitrary.

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And competition based pricing…

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My ballpark when I've done solo gigs in the past is 2-3x your desired net.

3x on the upper end if you've got high admin expenses/benefit expenses/desired time off/etc, 2x on the lower end if those expenses are negligible.

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Update - another suggestion I saw was divide by weeks & hours, then triple it (seems very arbitrary).. so $100k annual would be $145/hr

That sounds about right. If it feels low, charge more. Remember that you are likely competing on price. Companies pay MBB and others a lot more because of branding, a broad track record of successful delivery across industries/functions/geos, and access to firm resources/expertise. You likely offer none of that, but you can charge a lot less.

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💲For those who DON'T think a six figure salary is possible:

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And 🛑 wasting your time at a company that under-values you severely. Sometimes switching companies every 2 years or so will allow you to keep raising the bar for yourself.

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