How to Establish Your Hourly Rates for IT Consulting | Class
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- Опубликовано: 10 фев 2025
- This class offers different things to consider when setting your hourly consulting rates for a healthy and viable IT consulting business.
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This is senior advice here guys. Learn from this Master.
I've been self employed for 20 years. I confirm every word. Great advices.
I subscribed after you told the story of instead of making a business, you’re creating a job for yourself. Great tips!
Bruce - coming from somebody who has previously been "self-employed" I can confidently state that this video should be "required reading" or the "gold standard must view" for anyone wanting to start a business of their own. Your passion on the subject obviously comes from hard knocks, walking the walk, and actually being a player in the game. I have watched it a number of times - and - recommended it as essential viewing to many others! My advice to people is that "being employed" can often be arduous days of 9 to 5 - but - being self-employed is 24-7!
+Steven Whitley You're too kind Steven! I am glad you like the video.
This doesn't just teach what number you want to tell clients to pay you, this is an over-arching roadmap to excellence that touches on several key individual factors. Yes, money-focused, but then that lends to the level of skillsets in involved from technical, to business aptitude, to social mastery, and strategy development for example. Well done.
Stumbled upon your channel here. Quality video. I have $150K/yr IT job now. My company bills my time at $250 an hour. Now I understand why a little better (though still seems like I maybe underselling myself.)
+LastAvail Thanks for sharing that.
Great video! A lot of people don't realize how much more an hour you need to make when you have no benefits (and little security).
This video makes a lot of sense. I've been IT consulting for seniors for several years and were accustomed to charging $50 per hour. I realise now that working 40 hours a week is not possible in this business, so to cover your expenses including marketing and make a profit so you don't end up retiring in poverty requires a much higher hourly rate.
Thanks for the great advice and bringing the realistic perspective of owning your own IT business
Bruce, been watching for a long time but this video really takes the cake as far as being informative. 100k/year is not what it once was, and depending on where you are living it could be just enough for a family to get by. Keep the videos coming along the lines of running one's own business. Thanks!
frico00 Thank you! I most definitely make more videos on this subject.
Thank You, I started my business 3 years ago, wish I found this video back then. So true is the difference in value to businesses and consumers. A couple of things I didn't hear you mention were contracts and Insurance costs and the cost of staying current with technology and products. Then hiring other people vehicles and space.
I'm currently an Army IT systems administrator and I've just recently set on a path to being an IT consultant, I was going to start out at 65 dollars an hour and I thought that was good until watching this video.
thanks.
+Samuel Warren Glad you found this helpful
This is evergreen content, and boy are you good at it. It's a fantastic video that I never grow tired of watching. Everybody should know this before going into business.
However personally I think they absolutely should try entrepreneurship at some level, begin yesterday, because this is the global direction that economies seem to be taking for the foreseeable future (say 1 decade / generation, so 10~25 years 'till the 2030~40's).
I also think that putting your money in 401K etc. (depends on your country, let's call it state-backed low-interest savings) is just a bad idea in this century. People who want a good situation for themselves, or just help society advance by merit rather than rent, should educate themselves a little about money management and invest (markets, real estate, private business either theirs or others). That's how you get rich, more importantly that's how you contribute to making society richer as whole, as a country or even species.
Great video, you really made think about what I charge my clients for my services. Going to go over the numbers for the new year.
my god this is such a powerful video.
I needed to hear every word. Thank you.
Glad it was helpful!
Thanks for the good information...I started IT when I retired from my first job and started collecting my pension payments to earn some side money. Thanks for all your videos and great advice!
C Perry Thanks very much
Bruce,.. always a pleasure watching your work bud
McLovin Life And thanks for watching McLovin
I have a side IT business. my rate varies on what the job is. Because using the software I do it cuts down on labour. My costumers require their systems up and running as soon as possible.
more on ... ?
Overflowing jobs, to handle time, skill, urgency, boredom pressure?
Joining local, trade, industry, groups?
Peers, mentors, mentoring, to avoid sole operator burnout, loneliness?
Directing business in or out, depending on locality, health, time, skils, etc?
Types of insurances?
Bartering job skills, etc with other businesses?
Sources of industry news, gossip, events, timetables?
Partnering, merging, buying into, selling out the business?
Thank you. These are concerns that stopped myself from regular employee status.
Good info as always.
Questions for you (maybe for futur videos):
1- Is it possible to only offer remote assistance IT services for businesses ?
2- If you don't have the knowledge is some hardware/software your client has what do you do ?
3- Is someone starting out stuck in doing retail IT consulting how would you branch out to business customers then ?
Dicofole Great topic for a future video. Stay tuned as they say
Dicofole Just answered your questions in my latest vid. Thanks for the input here is the link ruclips.net/video/O8pMMPgMZ9s/видео.html
Thank you sir. Learnt a lot.
Thank you for sharing your wisdom, I look forward to more videos like this. Maybe some on investing, time management etc
I once set up a computer which took about 15 minutes. The gentleman thanked me and asked how much I wanted to be paid. I said I didn't want anything. The man insisted that he pay me, so he offered me some money folded in his hand. I told him he can give me half of what he was holding. He split the two bills and I drove away. I didn't even look at the denomination of what he handed me. It went straight into my pocket. I got about a mile down the road, and out of curiosity, I pulled over to look at what he gave me. Guessing it was a $20, it turned out to be a $100 bill! I immediately called my wife and exclaimed how big of an idiot I was to not take the $200.00 he was offering.
Great job on the video. you always have some good lessons to teach everyone! FrugalTech
***** Hey thanks Anthony!
Very valuable advises. Thank you.
I couldn't stop watching
This is an amazing video I want to start consulting on the side.
This is a very interesting video. I myself do consulting but still have a job. 👍🏿 Great advice.
i just finish watching the whole video.
i think it is better programming cuz you can sell the same software many times.
when are you going to do the video about CRM set up and ERP ?
there are hosting that provides that for 3$ monthly along your site.
like hostgator etc
***** Actually we will be adding e-Learning courseware to our product mix. Same principal as developing and selling software, but without the support headaches :D. As far as the CRM and ERP thing goes, I am not sure I will do an installation video. I have my reasons, but mostly there are so many hosted options out there to consider (Salesforce Microsoft Dynamics CRM, Insightly,Nimble, and others..)
FrugalTech well i want to try one of those that are free and see how it goes.
also you can download and install the crm in your one pc if you want to, there are many open source. If you can make a video about that, that will be great
I can't tell you how often friends of friends or family members friends of friends ask to have there pc's fixed for lunch...
gtrmaster2000 And that is why I beg people to avoid working with consumers....
FrugalTech Well said!
😂🤣
Thank you for this valuable video.
Thank you for making this video!!!
Thank you for the encouragement.
Hi, Thanks for your Video, I'm learning every day, thanks, I'm leaving in Europe, it's much different that in the US. But your words are very helpful to understand the Basic of this Business Workflow in the IT consulting World of America. :)
Léandro Manuel Barros Da Silva Thank you. Best of luck to you
Really good and sound advice..
***** Thanks very much Deccky
Thank you - I've been so scared so ask for so much money
For me still trying to get in the field with some kind of normal I.T job. I still live at home, so not huge expense issue. I don't have that much experience, and these things are kind of a learning experience for me so I don't charge much usually like 30-40 an hr. I don't charge for time that I have to use to look into something, or if I do something then end up taking like 15 minutes to fix. I think also kind of keeps them happy even if I do make an occasional mistake as if there paying like $100 an hr from what I hear they'll drop you for even something simple. Some are also referrals from friends, etc so I don't really want to have some way out there price and make my friend look silly, also kind of a referral discount.
I also hate to make it something like $80 an hr as then you go to apply somewhere and say you made that much an hour they may be like really!? I know consulting is often more, but I don't really care to go beyond 2X (at least locally) what some jobs pay.
jtech0 Thanks for writing. I understand what you are saying. In my opinion, working with consumers is a race to the bottom income wise. In my video, i suggest working with businesses on delivering solutions that provide return on investment in order to build a profitable IT consulting practice. This involves a higher degree of skills and specialized knowledge.
FrugalTech I watched it. I do this stuff for SMBs for $30 an hr. Pretty much basic A+, net+ maybe a little active directory, deal with their industry app. Maybe a little bit of security if I can get them to use good passwords, etc. On occasion I'll do it for family, neighbor, etc.
Smart and sustainable businesses pay for what they get. Businesses are not looking for cheap - they are looking for solutions - if you can provide the solution then price yourself accordingly - if you can't put the puck in the net then save yourself and your family some grief and get off of the ice! There will be other arenas that your will be good in! Losers settle - winners play with confidence and let their abilities shine!
Steven Whitley Couldn't agree more with you. That was something I hope to get across in my video.
Show me the MONEY! Nice video Bruce, we are listening.
Thanks !
solid video man, thanks!
Thank you
Thank you for your Knowledge :)
Yeah its all valid in 2020.
Thank you!
Thank you
What about insurance? If you get sued. You didn't mention that.
Tom Prokes I did not. Good point
do you use mint.com to track your expenses?
***** Quickbooks Pro 2014 is what I am using currently
FrugalTech i think mint connect with your account and can track all your things for you.
can you make a video about how to use quickbooks and why you choose that over other softwarE?
awesome
Good.
I guess you could say I'm freelance for family members... Computer laptop cell phones they call me .
Podcast for the win Do you get a free dinner? :D. Seriously been there and still doing it
Haha Yeah they are always good to me.
FrugalTech alberto and no comments
I need speakers, lol!
People sometimes feel there time is worth more then it should be, Taking a business Lawyer for example that charges $550.00 an hour. Your telling me after 10years-15years practicing you can't have a set price for incorporating a business.
Why would you want to lose a customer? can't you charge $550 for everything!
+Gazooo29 Excellent point. Some people do overcharge. Perhaps they are actually trying to discourage certain activities and deliberately set high prices to get out of it. I really don't know.
+FrugalTech Sorry about the bad spelling, I get typing and mess up. regarding your reply, I feel it's also a class issue too. IT people charging $350 an hour because they are well educated and have a massive customer base. So someone looking for the "best" see's this and will hire them. Well the $80 guy doesn't have those options yet.